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Compound interest

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

compounding


What are domestic interest margins?

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


Meaning of non-trade investments?

investment made for the purpose of earning dividend/interest .that is called non-trade investment.


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 is the process of earning your income sometimes called?

The process of earning your income is sometimes called "earning a living" or "making a living."


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.


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)


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