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Exact interest |
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Exact interestInterest paid based on the basis of a 365-day/year schedule by a bank or other financial institution as opposed to a 360-day basis (ordinary interest). Difference can be material when large principal sums of money are involved.Exact interest Similar MatchesCompound interestCompound interestInterest paid on previously earned interest as well as on the principal. Open interestOpen interestThe net amount of outstanding open positions, either long or short, in a given futures or options contract. Insurable interestInsurable interestA term which means that any person entering into an insurance contract must stand to lose financially following the loss or damage of an insured item, or an insured event. For example a person may insure his/her property and contents since a financial loss would be incurred if damage were to be sustained. InterestInterestThe charge you pay if you borrow money, and the income you receive if you lend it or invest it in an income-producing bank account or in a security like a bond or a gilt. For example if you borrow £1,000 at an interest rate of 10% per year, the interest payable is £100 per year. Loans are sometimes made at fixed rates of interest, and sometimes at variable rates.If you invest £1,000 at 10%, then you as lender expect to receive £100 interest. If instead of spending the interest, you reinvest it in the same security, then at the start of the second year you will have £1,100 invested and attracting 10%, so at the end of the second year you expect to receive £110 interest. This is the principle of compound interest, where you get rolling interest on your original capital and on the reinvested income. Gross interestGross interestInterest earned before taxes are deducted. Further Suggestionsgross interestInterest Interest payments variable interest rate Forward interest rate True interest cost Minority interest interest payable Best interests of creditors test Interest rate parity line (IRP) Cash flow after interest and taxes simple interest Interest expense Future Interest Simple interest prevailing interest rate compound interest Interest parity Interest rate floor Interest in Arrears Interest sensitive insurance policy Interest rate ceiling Applied or nominal interest rate Matured noninterest bearing debt Risk Free Interest Rate |
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