|
|
Add on interest |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Add on InterestA method of charging interest usually used in the financing of automobiles, but not generally used in real estate financing. Interest is computed on the total amount borrowed and added on to the principal. Each payment is then deducted from this total amount. Interest on real estate loans is usually figured based on the balance owing after each payment is made (declining balance).Add on interestThe interest a borrower pays on the principal for the duration of the loan.Add on interest Similar MatchesWild InterestWild InterestAn interest of record which cannot be traced in the chain of title. Frequently occurs when an incorrect legal description appears on a document. An apparent wild interest may occur if a woman who changes her name through marriage after acquiring property, sells the property using her married name only. Assumed interest rateAssumed interest rateRate of interest used by an insurance company to calculate the payout on an annuity contract. Matured noninterest bearing debtMatured noninterest bearing debtOutstanding savings bonds and notes that have reached final maturity and no longer earn interest. Includes all Series A-D, F, G, 1, J, and K bonds. Series E bonds (issued between May 1941 and November 1965), Series EE (issued since January 1980), Series H (issued from June 1952 through December 1979), and savings notes issued between May 1967 and October 1970 have a final maturity of 30 years. Series HH bonds (issued since January 1980) mature after 20 years. Interest coverInterest coverInterest cover measures the amount of interest paid by a company on its borrowings against its operating profit in the same period.The ratio shows the impact of gearing on a company's profit and loss account. If the figure is low, a small reduction in operating profits, or a rise in the cost of borrowing, can wipe out pre-tax profits. To calculate interest cover, divide the operating profits by the interest paid.Example: a company which has profits of £4m and which pays net interest of £1m, has interest cover of 4. Future InterestFuture InterestA present interest, but only a future right to possession and enjoyment of the land, such as a remainder interest, reversionary interest, etc. Further SuggestionsInterest rate floorCovered interest parity Interest rate Daily interest Times interest earned ratio permanent interest bearing shares Uncovered interest parity gross interest Interest Cap Risk Free Interest Rate Short interest theory Interest rate futures contract interest in possession Variable interest rate Interest Interest tax shield Imputed interest Interest only mortgages Consumer interest stepped interest debenture stocks Interest rate Interest equalization tax Short interest Interest expense Earnings before interest, taxes, and depreciation (EBITD) |
|
|
|