If you borrow $100,000 at 5% interest compounded annually, after the first year you would owe $5,250 on a principal of $105,000.
Financial and business terms. 2012.
Nominal interest rate — In finance and economics nominal interest rate or nominal rate of interest refers to the rate of interest before adjustment for inflation (in contrast with the real interest rate); or, for interest rates as stated without adjustment for the full… … Wikipedia
Effective interest rate — The effective interest rate, effective annual interest rate, Annual Equivalent Rate (AER) or simply effective rate is the interest rate on a loan or financial product restated from the nominal interest rate as an interest rate with annual… … Wikipedia
Periodic Interest Rate — The interest rate charged on a loan or realized on an investment over a specific period of time. Most interest rates are quoted on an annual basis. If the interest on the loan or investment compounds more frequent than annually, the annual… … Investment dictionary
Future Value - FV — The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today. There are two ways to calculate FV: 1) For an asset with simple annual interest: = Original Investment x (1+(interest… … Investment dictionary
Annual percentage rate — Parts of total cost and effective APR for a 12 month, 5% monthly interest, $100 loan paid off in equally sized monthly payments. The term annual percentage rate (APR), also called nominal APR, and the term effective APR, also called EAR,[1]… … Wikipedia
Continuous-repayment mortgage — Analogous to continuous compounding, a continuous annuity[1][2] is an ordinary annuity in which the payment interval is narrowed indefinitely. A (theoretical) continuous repayment mortgage is a mortgage loan paid by means of a continuous annuity … Wikipedia
Stock market — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia
Cost of delay — is the cost to bear as a result of delay in investment. Any delay in making an investment leads to a cost/loss. The accrued interest on the investment for the duration of the delay has a significant effect on the net returns. The cost grows with… … Wikipedia
United States fifty-dollar bill — The United States fifty dollar bill ($50) is a denomination of United States currency. U.S. President Ulysses S. Grant is currently featured on the obverse, while the U.S. Capitol is featured on the reverse. All $50 bills issued today are Federal … Wikipedia
United States one hundred-dollar bill — One hundred dollars (United States) Value: $100 … Wikipedia
