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If $1 were invested at 8 percent interest compounded annually, the total value of investment, in dollars at the end of 6 years would be P = Principal, r = rate of interest, n = number of years. P = $1, r = 8% , n = 6 years. Amount = 1 = 1 = 1 = Simply put, the effective annual interest rate is the rate of interest that an For example, the EAR of a 1% Stated Interest Rate compounded quarterly is 1.0038 %. The change, in percentage, from the beginning balance ($10,000) to the 

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Parties commonly negotiate for an aggregate upper limit on liability for direct damages that arise out of their contracts to get comfort and certainty with the potential risk of the transaction relative to the expected commercial benefits. This cap on liability can be a specific dollar amount, but many contracts tie the cap in some way to amounts paid for products or services. Liabilities are obligations of the company; they are amounts owed to creditors for a past transaction and they usually have the word "payable" in their account title. Along with owner's equity, liabilities can be thought of as a source of the company's assets.

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Futures Exchange: A futures exchange, traditionally, is a term referring to a central marketplace where futures contracts and options on futures contracts are traded. More recently, with the Future and forward contracts (more commonly referred to as futures and forwards) are contracts that are used by businesses and investors to hedge Hedge Fund Strategies A hedge fund is an investment fund created by accredited individuals and institutional investors for the purpose of maximizing returns and reducing or eliminating risk, regardless of market climb or decline.

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