Add on interest


 

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Add on Interest

A 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 interest

The interest a borrower pays on the principal for the duration of the loan.



Add on interest

Similar Matches

Wild Interest

Wild Interest

An 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 rate

Assumed interest rate

Rate of interest used by an insurance company to calculate the payout on an annuity contract.


Matured noninterest bearing debt

Matured noninterest bearing debt

Outstanding 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 cover

Interest cover

Interest 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 Interest

Future Interest

A present interest, but only a future right to possession and enjoyment of the land, such as a remainder interest, reversionary interest, etc.


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Covered 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
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Interest tax shield
Imputed interest
Interest only mortgages
Consumer interest
stepped interest debenture stocks
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Earnings before interest, taxes, and depreciation (EBITD)


 
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