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InterestThe amount paid by a borrower to a lender above the amount (the principal) that has been borrowed.InterestThe 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.InterestThe price paid for borrowing money. It is expressed as a percentage rate over a period of time and reflects the rate of exchange of present consumption for future consumption. Also, a share or title in property.Interest Similar MatchesGross interestGross interestInterest earned before taxes are deducted. Exact interestExact 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. And interestAnd interestAn indication that the buyer will receive accrued interest in addition to the price quoted for a bond. Matured noninterest bearing debtMatured noninterest bearing debtOutstanding savings bonds and notes that have reached final maturity and no longer earn interest. Includes all Series A-D, F, G, 1, J, and K bonds. Series E bonds (issued between May 1941 and November 1965), Series EE (issued since January 1980), Series H (issued from June 1952 through December 1979), and savings notes issued between May 1967 and October 1970 have a final maturity of 30 years. Series HH bonds (issued since January 1980) mature after 20 years. Assumed interest rateAssumed interest rateRate of interest used by an insurance company to calculate the payout on an annuity contract. Further SuggestionsNet interest cost (NIC)interest payable Risk Free Interest Rate Wild Interest Short term interest rates Interest rate parity theorem Variable interest rate Deferred interest mortgage Interest deduction variable interest rate True interest cost Simple interest Interest Cap Earnings before interest, taxes, and depreciation (EBITD) Interest only loan Minority interest prevailing interest rate Compound interest gross interest bond interest yield Covered interest arbitrage Interest rate parity line (IRP) Real interest rate Equilibrium rate of interest Covered Interest Rate Parity |
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