[...] is the process of accumulating interest over a period of time.
Answer
Compounding
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#reading-6-time-value-of-money
Question
[...] is the process of accumulating interest over a period of time.
Answer
?
Tags
#reading-6-time-value-of-money
Question
[...] is the process of accumulating interest over a period of time.
Answer
Compounding
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Subject 1 Time Value of Money and Interest Rates heir ability to repay lenders. Lenders therefore charge interest rates that incorporate default risk. The return that borrowers pay thus comprises the nominal risk-free rate (real rate + an inflation premium) and a default risk premium.
<span>Compounding is the process of accumulating interest over a period of time. A compounding period is the number of times per year that interest is paid. Continuous compounding occurs when the number of compounding periods becomes infinite; interest is added cont
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