Examlex
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Discounting
The process of determining the present value of future cash flows by applying a discount rate.
Compounding
The process in which the value of an investment increases because the earnings on an investment, both capital, and interest, earn interest as time passes.
Simple Interest
Interest calculated only on the principal amount of a loan or deposit, without compounding.
Note Payable
A formal written agreement to pay a specified amount of money, including interest, by a certain date, recorded as a liability on the balance sheet.
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