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Interest in Arrears |
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Interest in ArrearsInterest that is due only at the maturity date rather than periodically over the life of the loan.Interest in Arrears Similar MatchesInterest equalization taxInterest equalization taxA tax levied between 1963 and 1974 by the United States of 15% on interest received from foreign borrowers, intended to discourage capital outflows. Simple 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. Gross interestGross interestInterest earned by deposits at banks and financial institutions, or on gilts etc. before deduction of tax.Interest charged on bank loans etc before any tax relief is taken into account. Add on interestAdd on interestThe interest a borrower pays on the principal for the duration of the loan. Deferred interest mortgageDeferred interest mortgageInterest is not paid during the deferral period. When the period is over, the accumulated interest is added to the original loan. Some lenders add this interest to the total of your loan to give a new loan figure and new interest payments. Others calculate your interest payments on the original loan as normal and then spread the repayment of the deferred interest over a set period of time. The latter method is better for you, as adding the deferred interest to the loan means you end up paying interest on the deferred interest! Further Suggestionsinterest rateAssumed interest rate reversionary interest Forward interest rate Interest only mortgages Add on Interest Compound interest Interest rate floor Interest Lessees Interest Interest rate Mortgage interest deduction Consumer interest Simple interest mortgage interest deduction interest receivable interest only mortgage And interest permanent interest bearing shares Wild Interest Incidence of interest calculation Deferred interest bond Stated annual interest rate Covered interest arbitrage interest rate swap |
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