0
In financial or banking term, there is a subtle difference between interest accrued and interest due. for example, if you open a saving account, the interest start accruing as soon as you put any amount of money in the account. However, there may be rules for this account, saying for example, that you will get the interest only if you leave the money at least 3 months in the account. If you need urgently the money and withdraw it from your saving account before the 3 month period has passed, then you will not get any interest on this money. The interest has accrued on your account, but it is not due, because you withdrew the money to early.
Example:
3-month Saving account, 12% interest per year (1% per month):
- 1st of January: open account and deposit $1000
- 1st January to 28th of February: interest accrues on the $1000
- 1st of March: withdraw $500: half of the interest accrued is lost
- 1st of April: withdraw all the money from the account:
- the remaining $500
+ the interest due for 3 months on $500
(because this amount stayed at least 3 months in the account)
I hope this helps,
Excel-Hocam
What else can I help you with?
Define rigidity modulus?
change in shape due to stress applied
Use the word accrue in a sentence?
No good will accrue from robbing the bank, no matter how desperately one needs the money.
Whats a synonym for accumulate?
Accrue, aquire, store, incorporate, increase, collect
Matter occupies space and has mass define how energy must be described in terms of these two factors Then define energy?
Matter occupies space and has mass Explain how energy must be described in terms of these two factors Then define energy?
Define fall of a projectile?
The fall of a projectile is due to the force of gravity. Projectiles have no capacity for self-propulsion and are objects that are thrown or propelled.
If a department store fails to make the entry to accrue the finance charges due from customers?
interest revenue will be understated.
Can you give an example of a simple sentence using the word accrue?
Accrue holiday
What is a prefix for accrue?
The prefix for accrue is "re-", which means to do something again or in a repeated manner.
When does finance charge begin to accrue on the credit card?
Finance charges on a credit card typically begin to accrue as soon as you carry a balance beyond the grace period, which is usually the time frame between the end of the billing cycle and the due date for payment. If you pay your full balance by the due date, you can avoid finance charges. However, if you make only a partial payment or miss the due date, interest will start to accrue on the remaining balance. Additionally, cash advances or balance transfers may incur finance charges immediately, without a grace period.
A sentence using a word accrue?
Your money will accrue interest after leaving it in the bank for 12 months.
What is adwords accrue cost?
I think your advertising campaigns must accrue costs of at least $25.
If a person dies can the credit card account still accrue interest?
No, it should not continue to accrue interest.
How do minerals naturally accrue?
they are naturally accrue by the wind pushing other rocks together and creating a mineral
What is the meaning of accrued?
of Accrue
What is the definition of accrued?
of Accrue
What is the synonym for gain?
Added, accrue .
Interest will not accrue on your loans while you are in forbearance?
In the US, interest does not accrue on Subsidized stafford loans while in deferment. Interest does accrue at all times for unsubsidized stafford loans. Interest accrues on all loans while in forbearance.
