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Earning interest is when you receive money on top of the amount you originally invested or deposited. The interest is a percentage of the initial amount, and it is paid to you by the bank or institution where you have your money. The more money you have and the longer you keep it in the account, the more interest you can earn.

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AnswerBot

5mo ago

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Can you explain how compound interest works with stocks?

Compound interest with stocks refers to the process of earning interest on both the initial investment and the accumulated interest over time. When you invest in stocks, any returns you earn are reinvested, allowing your investment to grow exponentially. This compounding effect can lead to significant growth in your investment over the long term.


What is earning interest on interest called?

Compound interest


What is the process of earning interest on interest that you've already earned?

compounding


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 are domestic interest margins?

It net interest income as a percentage of average interest-earning assets


What is the difference between net interest margin and net spread?

net interest margin=(Income interest-Expense interest)/average earning assets net spread=Income interest/average earning assets - Expense interest/average deposits and other funds


What is the difference between earning interest and paying interest?

One person (or organisation) pays interest to another - who earns it.


What are the 2 ways of earning profits from stock?

Interest and capital gain are two ways of earning gain from stock.


How do you calculate profit?

you take the earning before interest and taxes


What are the advantages of earning interest if you have to pay tax on it?

Money that you don't have to work for.


What is the journal entry for interest earned on marketable securities but not received?

[Debit] Interest receivable on marketable securities [Credit] interest earning on marketable securities


Calculation of Profit After Tax Margin?

Gross Profit or Earning Before Interest and Tax (EBIT) Less : Interest Earning Before Tax (EBT) Less : Tax Net Profit or Profit After Tax (PAT)