This is the total payment received in exchange for a service as well as a reward for outstanding performance. It is usually used in reference to a person’s salary or wages. Compensation includes the following: Basic pay Dearness allowance House rent allowance Leave travel allowance Overtime pay Bonus Perks, incentives, or commission Stock options or …
Post Type Archives: Glossary
Compounding
Compounding refers to the ability of money to increase exponentially over time by the repetitive additions of earnings to the principal amount. This happens because the interest amount is not withdrawn. Instead, it gets reinvested to earn additional returns. A higher compounding period leads to a higher compound interest. Here is an example for better …