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A Psychological Contract Is a Set of Expectations Held by an Individual

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A psychological contract is a set of expectations held by an individual about what will be given and received in the employment relationship.


Definitions:

Compounded Monthly

Calculating interest each month by adding it to both the original investment and the interest that has already been accumulated from past periods.

Quarterly Payments

Payments made four times a year at three-month intervals, often related to dividends or loan repayments.

Interest Rate

The expense a borrower bears for the use of funds from a lender, measured as a fraction of the principal.

Discount Rate

This term refers to the interest rate used in discounted cash flow analysis to figure out the current value of cash flows that will occur in the future.

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