The total amount to be repaid on a one-year term loan of 500 dollars with an interest rate of 12 percent depends on how often it is compounded. If it is only compounded once during the year, you will owe 560 dollars after one year.
Interest.
Option 3: not at all. If we're lucky, we'll get back half of the principle, but we will not get any interest, and will not even get back the full 700 billion.
The principal amount of a bond that is repaid at the end of the term is called the "face value" or "par value." This is the amount that the bond issuer agrees to pay the bondholder upon maturity. It is also the basis for calculating interest payments, which are typically expressed as a percentage of the face value.
The outstanding principal balance on a loan is the amount of money that still needs to be repaid to the lender, not including any interest or fees.
The principal fee associated with a loan is the initial amount borrowed that must be repaid, excluding any interest or other charges.
Interest.
Yes it is
what is it called when goverment note that is repaid with interest?
capitalization. Capitalization is when all unpaid interest is added to the principal balance of your loan. Capitalization increases your total amount to be repaid because you will then have to pay interest on the increased principal amount.
Option 3: not at all. If we're lucky, we'll get back half of the principle, but we will not get any interest, and will not even get back the full 700 billion.
interest is due.
A bond's face value is typically repaid to the bondholder at maturity. This represents the principal amount borrowed by the issuer, which is returned to investors along with any final interest payments.
For loans, the primary amount is the principal, which must be repaid in addition to whatever interest is charged. Until the principal is completely paid, the loan agency will normally continue to charge interest.
13,807.50
Simple interest is interest that is applied to the original amount for the whole period of the investment or loan. This is unlike compound interest where the interest received on an investment is re-invested, or the interest due on a loan is added to the loan outstanding if unpaid, and so itself gains interest. With simple interest on loans, it is often calculated that borrowing a certain amount for a number of years will be charged at a certain rate for the whole period; then at the end of the period of borrowing the original loan and all the interest are repaid at that moment. However, if monthly repayments are made, then part of the original loan as well as the interest for the month are repaid; this means that not all the loan is borrowed for the whole period and so the real [effective] rate of interest for the period is actually higher than the given rate as that given rate assumes no part of the loan is repaid until the very end.
The outstanding principal balance on a loan is the amount of money that still needs to be repaid to the lender, not including any interest or fees.
The principal fee associated with a loan is the initial amount borrowed that must be repaid, excluding any interest or other charges.