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From Your Perspective as a Compensation Officer,what Is the Most

question 14

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From your perspective as a compensation officer,what is the most important category of reasons for doing performance appraisals?


Definitions:

Discount Rate

In finance, the discount rate is the interest rate used to determine the present value of future cash flows.

Present Value

A future sum of money or cash flows' value at present, applying a specific rate of return.

Compound Interest

Compound interest is the addition of interest to the principal sum of a loan or deposit, where interest in the next period is then earned on the principal sum plus previously accumulated interest.

Reinvested

Refers to plowing back earnings or investment returns into purchasing more securities or assets to compound growth.

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