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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 MatchesInterest rate ceilingInterest rate ceilingSee: Interest rate cap Imputed interestImputed interestUsed in accounting to refer to interest that has effectively been paid to a bondholder, even though no money has actually been paid. Interest only loanInterest only loanA loan in which payment of principal is deferred and interest payments are the only current obligation. Mortgage interest deductionMortgage interest deductionA federal tax deduction for interest paid on a mortgage used to acquire, construct, or improve a residence. Export financing interestExport financing interestInterest income derived from goods manufactured in the US and sold outside the US as long as not more than 50% of the value is imported into the US Further SuggestionsIncidence of interest calculationDaily interest Amortizing interest rate swap Market interest rate Equilibrium rate of interest Earnings before interest and, taxes (EBIT) compound interest reversionary interest Noninterest bearing note Interest rate Earnings before interest, taxes, depreciation, and amortization (EBITDA) Discount Interest Covered interest rate Interest Earnings before interest after taxes (EBIAT) Interest tax shield Covered interest arbitrage Term structure of interest rates Compound interest Interest sensitive insurance policy And interest Covered interest parity Interest rate parity line (IRP) Add on Interest Variable interest rate |
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