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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 MatchesBest interests of creditors testBest interests of creditors testThe requirement that a claim holder voting against a plan of reorganization must receive at least as much as if the debtor were liquidated. Amortizing interest rate swapAmortizing interest rate swapSwap in which the principal or notional amount rises (falls) as interest rates rise (decline). Variable interest rateVariable interest rateSee: Adjustable rate Interest rateInterest rateThe rate of return on bonds, loans, or deposits. When one speaks of "the" interest rate, it is usually in a model where there is only one. Interest only mortgagesInterest only mortgagesWith an interest-only mortgage, your monthly repayments to the lender consist only of interest on the total loan amount. The interest payments will vary depending on the interest rate being charged by the lender at the time. This type of mortgage involves paying the lowest possible monthly outlay to the lender, as no capital is included in the repayment. Instead of repaying the capital, regular payments are put aside in a suitable investment or savings plan. This grows cumulatively and assumptions are made regarding its growth in order to calculate a monthly repayment figure. If you are fortunate, the investment will accumulate at a higher rate than is required to pay back your loan on time, resulting in a cash surplus at the end of the term. This is not always the case however, and sometimes there can be a cash deficit at the end of the term. Further SuggestionsRisk Free Interest RateInterest equalization tax Earnings before interest, taxes, and depreciation (EBITD) Short term interest rates Capitalized interest Add on Interest Future Interest Interest equalization tax Nominal interest rate Daily interest Interest rate ceiling Interest Cap Minority interest interest payable Lessees Interest High withholding tax interest income Real interest rate Add on interest Deferred interest bond Discount Interest Interest rate parity line (IRP) Interest in Arrears Ordinary interest Interest on interest Deferred interest mortgage |
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