answersLogoWhite

0

  • Definitions

What is interest?

User Avatar

Wiki User

βˆ™ 2014-05-23 09:12:39

Best Answer
Copy

Interest means that you borrow money, and you owe it back with a little bit extra. e.g. you owe someone £10. After a month you give that money back. But for having let you borrow it, you might now owe £10 with 2 pounds (interest) added.

2014-05-23 09:12:39
This answer is:
πŸ€“
🀯
πŸ€”
User Avatar

Your Answer

Loading...

Related Questions

What is earning interest on interest?

Compound interest. This is where you work out the interest on a number, then work out the interest on top of the number with the interest added.


What is a simple interest in math?

Simple interest is interest that is calculated only on the amount of unpaid principal on a loan. Such interest is not added to the value of the loan but is tracked separately. Compound interest is interest that is calculated on the total of unpaid principal and accumulated interest on a loan. The difference is in simple interest there is no interest charged on accumulated interest while in compound interest there is interest charged on accumulated interest.


Would the statement 'Simple Interest is interest earned on interest' be True or False?

False. Interest upon interest is compounded interest


What are the major differences between compound interest loan and simple interest loan?

With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.


Interest earned on interest is known as?

Compound Interest


Can interest be charged on interest?

Interest is usually not charged on interest and is called capitalizing interest. On some occassions banks may roll interest on a note and thus charge interest on the interest, but this is not advisable and is only done in certain situations that demand that it be done.


What is the journal entry for Interest due but not received?

debit interest receivablecredit interest income


What is simple interest and compound interest?

Compound interest is when interest is charged on the principal plus the interest. An example is a credit card debt. If you carry a balance from month to month you are charged interest on the total amount owed including the interest from previous months. Simple interest is calculated on the amount borrowed over a fixed amount of time and does not charge interest on the interest.


What are the two kinds of interest?

simple interest and compound interest


How are you get interest and care from him?

i am fine, i have interest on him and i got interest from him and care for him.


An interest that is not recognized or represented by an interest group?

latent interest


What is nominal interest?

Nominal InterestA nominal interest rate is the interest rate that does not compensate for inflation. This is used in relation to "effective interest rate" or "real interest rate."" Real Interest Rate = Nominal Interest Rate - Inflation Rate " Improvement suggested by Palash Bagchi.


Is simple interest the same as compound daily interest?

No. The "simple interest" method of calculation does not compound interest. It takes the annual interest rate and divides it by 365 to get the daily rate. The daily rate is then multiplied by the current balance to get the amount of interest that accrues per day. This interest is kept in a separate account from the principle, and interest does not accrue on the balance of that account. In compound interest, the principle and interest are kept in the same account, so interest accrues on past interest.


Is the annual interest rate the same as simple interest?

Usually no. Most institutions charge (and pay) compound interest, NOT simple interest.Usually no. Most institutions charge (and pay) compound interest, NOT simple interest.Usually no. Most institutions charge (and pay) compound interest, NOT simple interest.Usually no. Most institutions charge (and pay) compound interest, NOT simple interest.


Difference between simple interest and compound interest?

Simple interest is based on the original principle of a loan. Simple interest is generally used on short-term loans. Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on.


Interest paid on both the principal and the interest on the principal is what?

Compound Interest


What is A process where interest is paid on interest?

it's called compound interest


Compound interest is interest paid on interest previously earned?

yes


What type of interest pays interest on principal only?

simple interest


What are some of the uses of compound interest in business?

compound interest increases interest more than simple interest


What is the best definition of compounding interest?

Interest paid on interest previously received is the best definition of compounding interest.


What is the effect of compound interest?

The effect of compound interest is that interest is earned on the accrued interest, as well as the principal amount.


When the interest paid on a savings account is added to the balance so the interest earns interest this is known as?

Compound interest


How is interest different from compound interest?

Simple interest is interest paid on the original principle only, Compound interest is the interest earned not only on the original principal, but also on all interests earned previously.


When the amount earned on a deposit has become part of the principal at the end of a specified time period the concept is called Answer discount interest compound interest primary interest?

If the interest is reinvested and so itself gains interest (in the next interest period) it is compound interest.