Examlex
Which of the following is the strongest base?
Compounded Monthly
This process involves the reinvestment of interest, so each month's interest earning is based on the principal plus the previously earned interest.
Amortized
The gradual reduction of a loan or debt by regular payments of both interest and principal.
Compounded Monthly
A method of calculating interest where the accrued interest is added to the principal sum each month, so that each subsequent interest calculation is made on a slightly higher amount.
Compounded Annually
The practice of calculating and adding interest to the initial amount of money once every year, increasing the future accruals of interest.
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