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Describe issues involved in measuring trade and financial flows in an open economy.
Future Value
The estimated value of an investment at a future date, taking into account variables like interest rates or compound interest, used in financial planning and assessment.
Interest Rate
The fraction of a loan amount that is applied as interest for the borrower, commonly indicated as an annual percentage of the remaining loan balance.
Compounded Annually
Interest calculation method where interest is added to the principal at the end of each year, and future interest calculations include this additional amount.
Interest
The cost of borrowing money or the return on investment for lenders, typically expressed as a percentage.
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