compound interest

Tag: compound interest

Rule of 72 Definition

Rule of 72 Definition The rule of 72 definition is an approximation tool used to determine the amount of time it will take for money to double on the earnings of compound interest. The Rule of 72 is also used to calculate the rate of return necessary to double an investment in a specific amount

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What is Compound Interest?

See Also: Effective Rate of Interest Calculation When is Interest Rate Not as Important in Selecting a Loan? Interest Expense Nominal Interest Rate Interest Rate Swaps What is Compound Interest? Compound interest is interest earned on the principal plus interest earned on prior interest. Compounding interest rates not only earn interest on the original money,

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Rule of 72

The rule of 72 is an approximation tool used to determine the amount of time it will take for money to double on the earnings of compound interest. Rule of 72 Explained The rule of 72 is essentially an estimation for determining the amount of years or the doubling time of an investment. Do this

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Interest Rate Definition

See Also: Effective Rate of Interest Calculation Interest Expense What are the 7 Cs of banking Time Value of Money (TVM) Interest Rate Risk LIBOR vs Prime Rate Federal Funds Rate Definition Treasury Inflation Protected Securities Interest Rate Definition An interest rate signifies a borrowing cost. The interest rate definition is the rate the lender

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Future Value

See Also: Valuation Methods Net Present Value Method Adjusted Present Value (APV) Method Present Value (PV) Opportunity Cost Future Value Definition Future value (FV) is the value of a sum of money at a future point in time for a given interest rate. The idea is to adjust the present value of a sum of

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