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What is the standard deviation of the ending balance? What does the distribution look like? What should Amanda infer from this?
Rate Of Interest
The percentage of an amount of money which is paid for its use for a specified time, often annually.
Compounded Annually
Refers to the process of calculating interest earned on an investment or loan on an annual basis, where the amount earned is reinvested to earn additional interest in subsequent years.
Cash Flows
The cumulative exchange of cash and cash-equivalents flowing into and out of a corporate entity.
Lump Sum Payment
One lump sum payment made at a specific moment, rather than multiple smaller payments over time.
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