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Find the distance between the points and .
Annuity
An investment vehicle that provides a consistent series of payments to a person, mainly serving as a source of income for those who have retired.
Compound Interest
Interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.
Present Value
The assessed present-day value of money to be received in the future or a pattern of cash inflows, factoring in an established rate of return.
Effective Rate
is the actual interest rate that an investment earns or a loan incurs, including the effects of compounding over a given period.
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