Interest on interest


 

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Interest on interest

Interest earned on reinvestment of each interest payment on money invested. See: compound interest.



Interest on interest

Similar Matches

And interest

And interest

An indication that the buyer will receive accrued interest in addition to the price quoted for a bond.


Interest

Interest

The 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.


Open interest

Open interest

The net amount of outstanding open positions, either long or short, in a given futures or options contract.


Simple interest

Simple interest

Interest calculated as a simple percentage of the original principal amount. Compare to compound interest.


Risk Free Interest Rate

Risk Free Interest Rate

Describes return available to an investor in a security somehow guaranteed to produce that return. The risk-free interest rate compensates the investor for the temporary sacrifice of consumption.


Further Suggestions

Wild Interest
Interest
Interest rate ceiling
Deferred interest mortgage
Earnings before interest, taxes, and depreciation (EBITD)
Covered interest parity
Compound interest
Earnings before interest, taxes, depreciation, and amortization (EBITDA)
Forward interest rate
Effective annual interest rate
Interest parity
True interest cost
simple interest
interest in possession
variable interest rate
Minority interest
prevailing interest rate
Capitalized interest
Exact interest
Covered Interest Rate Parity
Interest only mortgages
Short interest theory
Interest rate
Interest rate futures contract
Amortizing interest rate swap


 
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