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Compounds Interest
Refers to the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.
Future Value
The value of an investment at a specified date in the future, taking into account factors like interest rates and compounding.
Compounded Monthly
Refers to the process of calculating interest on both the initial principal and accrued interest from previous periods on a monthly basis.
Cash Flow Stream
A series of cash inflows and outflows over a period, associated with an investment, project, or business operation.
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