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Compound Interest
Compound interest refers to the interest that is computed on both the initial principal amount and the interest that has been accumulated from previous periods for either a deposit or a loan.
Future Value
The value of an investment or payment at a specific future date, considering factors like interest rates or earnings.
Present Value
The current worth of a future sum of money or stream of cash flow given a specified rate of return, often used in the assessment of investment profitability.
Compound Interest
It's the practice of calculating interest by considering not just the starting principal amount but also the interest that has accrued in earlier periods, applicable to deposits and loans.
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