Examlex
All of the following are provisions of IDEA EXCEPT:
Compounding
Compounding refers to the process by which the value of an investment increases because the earnings on an investment, both capital gains, and interest, earn interest as time passes.
Compounded Monthly
A process where interest earned on an investment is calculated and added to the principal each month, thereby earning interest in subsequent months.
Opportunity Rate
The return of a foregone option when another investment is chosen, embodying the concept of opportunity cost.
Time-Value
The belief that possessing money today is more valuable than having the same sum later, due to its capability to accrue earnings.
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