Annual equivalent percentage rate.
If the interest is reinvested and so itself gains interest (in the next interest period) it is compound interest.
The amount of money earned on a principal called is interest
Interest.(:
Principal is the amount of money you borrow. Interest is the fee charged by the lender (or bank) to use their money. The total amount of money you pay back is the principle + interest.
Compound interest
Fixed Deposit also called as term deposit in many countries works in a very simple manner as decided by Financial institutions. You have to deposit your money for a fixed tenure and you get a legitimate interest on that amount. Once the tenure is completed, you get your money after maturity. The final amount contains Principal amount Plus Interest Rate.
compoind interest
compounding interest.... i think
If the interest is reinvested and so itself gains interest (in the next interest period) it is compound interest.
Find the amount of interest added at each compounding interval (also called the periodic rate).Calculate the interest added for the first time interval.Add the interest to the value of the debt security to find the ending value for the period.Use a formula to calculate maturity value.
Banks make money by lending money to people and charging people for borrowing. The amount banks charge is called interest. Banks borrow money from other people and pay them interest on the amount borrowed. Banks charge more interest on the money they lend than they pay one the money they borrow. That is how they make money. When people deposit money with a bank, the bank is literally borrowing money from some people so they can lend it to other people. That is why banks pay interest.
time deposit means payable at specified time same is the case with bank deposit ie. fixed deposit that is payable after certain period means not less than 7 days to earn interest so fds are called as time deposit
A fixed deposit is called a pledge, because it is an agreement that is made. The agreement is a certain amount of money will be deposited on a regular basis. It is a promise or pledge to make the deposit.
They both refer to the exact same thing. It is just two different terms by which we are referring to this deposit product. In this, a customer deposits a lump-sum amount with the bank for a fixed amount of time at a fixed rate of interest. In return, the bank gives a certificate to the customer which he/she can surrender after the stated time in return for the invested amount + interest. They are called Time Deposits, Certificate of Deposit, Fixed Deposits etc.
Yes of course, the interest on a fixed deposit is revenue because revenue is something owed but not yet paid. Hence, we can call it as revenue. Many Banks such as Axis, ICICI, IDBI and NBFCs like Bajaj Finserv are offering good interest on fixed deposit which can be called as revenue.
The amount of money earned on a principal called is interest
amount