Term
| What is the essential idea in the compounding process? |
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Definition
| Earning interest on interest |
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Term
| How do you calculate the Effective Annual Yield? |
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Definition
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Term
| If two investments have the same nominal annual interest rate, which will have hte higher effective annual yield? |
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Definition
| The investment with the more frequent compounding interval within the year. |
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Term
| With compounding we are concerned with the determining the ______ of an investment, and with discounting we are concerned with finding the _________. |
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Definition
| Future Value Present Value |
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