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Simple interest |
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Simple 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.Simple interestInterest calculated as a simple percentage of the original principal amount. Compare to compound interest.Simple interest Similar MatchesNet interest cost (NIC)Net interest cost (NIC)The total amount of interest that will be paid on a debt obligation by a corporate or municipal bond issuer. Forward interest rateForward interest rateInterest rate fixed today on a loan to be made at some future date. Applied or nominal interest rateApplied or nominal interest rateThe rate used to calculate the interest due. Amortizing interest rate swapAmortizing interest rate swapSwap in which the principal or notional amount rises (falls) as interest rates rise (decline). Interest deductionInterest deductionAn interest expense, such as interest on a margin account, that is allowed as a deduction for tax purposes. Further SuggestionsConsumer interestVariable interest rate stepped interest debenture stocks Interest parity insurable interest Interest expense Stated annual interest rate Deferred interest mortgage Daily interest Deferred interest bond Effective Interest Rate Assumed interest rate Capitalized interest mortgage interest deduction Interim interest Effective annual interest rate Incidence of interest calculation Party in interest Interest equalization tax Covered interest arbitrage interest in possession Interest rate floor interest rate swap Earnings before interest, taxes, and depreciation (EBITD) High withholding tax interest income |
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