Examlex
Value stream mapping (VSM) is a tool for
Compounded Monthly
An interest calculation method where interest is added to the principal sum at the end of each month, with each subsequent month earning interest on the new total.
Nominal Rate
The nominal rate is the stated interest rate on a loan or financial product, not adjusted for inflation.
Monthly Compounding
The process wherein the interest earned on an investment is added to the principal sum every month, and from then on, the interest for future periods is calculated on the new total.
Effective Annual Rate
The effective annual rate is the actual return on an investment after accounting for compounding interest over a one-year period.
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