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Interest expense |
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Interest expenseInterest expense is the money the corporation or individual pays out in interest on loans.Interest expense Similar MatchesSimple interestSimple interestInterest, normally paid annually, which is earned on deposited capital only. Unlike compound interest, the annual interest is not added to the capital. For example, if the capital deposited is £1,000 and the interest rate is £80, you would receive £80 at the end of the first year and at the end of the second year. This contrasts with compound interest, where the £80 interest earned on the first year would be added to the original capital, and the amount of money earning interest in the second year would be £1,080.00. Assumed interest rateAssumed interest rateRate of interest used by an insurance company to calculate the payout on an annuity contract. 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. InterestInterestThe amount paid by a borrower to a lender above the amount (the principal) that has been borrowed. Short term interest ratesShort term interest ratesInterest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. Further Suggestionspermanent interest bearing sharesEffective annual interest rate Interest rate parity theorem mortgage interest deduction Interest equalization tax Unearned interest Discount Interest Interest sensitive stock Forward interest rate Noninterest bearing note interest in possession compound interest Net interest cost (NIC) Covered interest parity Risk Free Interest Rate Real interest rate Effective Interest Rate Matured noninterest bearing debt Lessees Interest interest receivable Nominal interest rate Interim interest Spot interest rate Simple interest Any interest date |
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