|
|
Daily interest |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Daily interestInterest on the homeloan is calculated and applied on a daily rather than a monthly or yearly basis. Can lead to big savings.Daily interest Similar MatchesTerm structure of interest ratesTerm structure of interest ratesRelationship between interest rates on interest rates of different interest rates, usually depicted in the form of a graph often called a interest rates. Harvey shows that inverted term structures (long rates below short rates) have preceded every recession over the past 30 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. Interest receivableInterest receivableAn accounting term which refers to the amount of income a company receives in the form of interest payments on its cash. The figure for interest receivable can be found in the balance sheet. Its flip side is 'interest payable' - the amount a company pays on its borrowings. Interest expenseInterest expenseInterest expense is the money the corporation or individual pays out in interest on loans. Incidence of interest calculationIncidence of interest calculationThe frequency that the outstanding interest and ongoing mortgage repayments are calculated. Charging interest on the outstanding balance of your loan at the end of each day, means you reap immediate benefits of any repayments you make, since you will be charged interest on a smaller debt each day. As long as you are making payments on time, the more often interest is calculated the better for you. This is a common feature of flexible mortgages, but is not restricted solely to them. When interest is calculated annually, repayments are not updated to include the reduction in capital that arises from the payments you make throughout the year. Further SuggestionsInterest in ArrearsAssumed interest rate True interest cost variable interest rate Interest only mortgages Unearned interest And interest Spot interest rate permanent interest bearing shares prevailing interest rate Interest on interest Deferred interest mortgage Covered Interest Rate Parity reversionary interest mortgage interest relief at source Variable interest rate Covered interest parity Interest rate parity theorem Interest deduction Uncovered interest parity Short interest open interest Forward interest rate Interest rate Interest parity |
|
|
|