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interest
interest
A Dictionary of Business and Management
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2006
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© A Dictionary of Business and Management 2006, originally published by Oxford University Press 2006. (Hide copyright information)
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interest 1. The charge made for borrowing a sum of money. The
interest rate is the charge made, expressed as a percentage of the total sum loaned, for a stated period of time (usually one year). Thus, a rate of interest of 15% per annum means that for every £100 borrowed for one year, the borrower has to pay a charge of £15, or a charge in proportion for longer or shorter periods. In
simple interest, the charge is calculated on the sum loaned only, thus
I =
Prt, where
I is the interest,
P is the principal sum,
r is the rate of interest, and
t is the period. In
compound interest, the charge is calculated on the sum loaned plus any interest that has accrued in previous periods. In this case
I =
P [(1 +
r)
n – 1],
where
n is the number of periods for which interest is separately calculated. Thus, if £500 is loaned for two years at a rate of 12% per annum, compounded quarterly, the value of
n will be 4 × 2 = 8 and the value of
r will be 12/4 = 3%. Thus,
I = 500 [(1.03)%8 – 1] = £133.38
, whereas on a simple-interest basis it would be only £120. These calculations of interest apply equally to deposits that attract income in the form of interest.
In general, rates of interest depend on the money supply, the demand for loans, government policy, the risk of nonrepayment as assessed by the lender, the period of the loan, and relative levels of foreign-exchange rates into other currencies.
2. A share of ownership. See
controlling interest;
minority interest;
participating interest.
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PROPOSALS FOR LONG-TERM FISCAL STABILITY:DIANNE FEINSTEIN
Transcript from: Congressional Testimony; 11/10/2009; 700+ words
; ...could have been higher exceptfor the financial crisis numbers which are about 11 percent so far of everythingwe spend. The interest on debt is 5 percent. Discretionary defense is18percent. Everything else - all the things Senator Sessions spoke about...
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Nightly Business Report
Transcript from: Nightly Business Report; 11/13/2009; ; 700+ words
; ...will put downward pressure on the dollar. That could cause foreign investors to try to pull out of U.S. assets sending interest rates higher and further slowing economic growth in the United States.GHARIB: That downward pressure on the dollar continued...
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 "The O'Reilly Factor (Fox News Network)")
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Talking Points Memo and Top Story
Transcript from: The O'Reilly Factor (Fox News Network); 11/13/2009; ; 700+ words
; ...disaster for the security of the United States and for the interests of the United States in the dangerous world we live in. The...What we ought to be concerned about here is what is in the interest of the United States of America. And Bill, you nailed it...
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President Obama Brings Personal Ties To Asia Tour
Transcript from: NPR Weekend Edition - Saturday; 11/14/2009; ; 700+ words
; ...Soundbite of applause) HORSLEY: The president vowed to work pragmatically alongside China, where the two countries' interests are aligned. And even though China's now the United States' second-biggest trading partner, and its biggest foreign...
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Ex-IMF Economist: Dollar's Drop Has Pros And Cons
Transcript from: NPR Weekend All Things Considered; 11/14/2009; ; 700+ words
; ...Reserve's done everything it can cutting interest rates, and yet still, unemployment...creditors could start to lose confidence, interest rates we pay could go up and then we...the way that would express itself is interest rates would rise quicker and more sharply...
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PROPOSALS FOR LONG-TERM FISCAL STABILITY:JOE LIEBERMAN
Transcript from: Congressional Testimony; 11/10/2009; 700+ words
; ...bearthe brunt of our failure to make the difficult but essential economic choices:reduced national savings, skyrocketing interest rates, a drastically weakeneddollar, and even more dependence on foreign governments who currently ownhalf of our nation...
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Adviser Sees No Conflict In Kurdish Oil Deals
Transcript from: NPR All Things Considered; 11/12/2009; ; 700+ words
; ...Your financial interests have been merged with the political interest. How do you respond...that I had business interest. BLOCK: And Ambassador...corporate clients with interest in Iraq. So, I...that I had these interests. BLOCK: And Ambassador...
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Obama Begins Asia Tour In Japan
Transcript from: NPR Morning Edition; 11/13/2009; ; 700+ words
; ...have said Mr. Obama, who of course was born in Hawaii and spent part of his childhood in Indonesia, has a very personal interest in shoring up trans-Pacific ties. MONTAGNE: Scott, thanks very much. NPR's Scott Horsley speaking w
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Galbraith's Actions May Hurt Independent Advice [DP]
Transcript from: NPR Morning Edition; 11/13/2009; ; 700+ words
; ...now he is being accused of having a conflict of interest because of business interests he had in that region, even as he was offering...GALBRAITH (Former U.S. Diplomat): There are interests, but what's the conflict? There is no conflict...
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SEN. DANIEL K. AKAKA, D-HAWAII, SEN. DANIEL K. AKAKA, D-HAWAII, DELIVERS REMARKS AT THE WORLD WAR II MEMORIAL ON THE NATIONAL MALL
Transcript from: Washington Transcript Service; 11/11/2009; 679 words
; ...militarily and frighten the public into a corner. They said thatAmericans were too caught up in their own concerns and self- interest tomake the sacrifices necessary to win a fight of this magnitude. They wouldbe proven wrong, by the young people who set...
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whistle-blowing
Book article from: The Columbia Encyclopedia, Sixth Edition
...act also protects whistle-blowers from wrongful dismissal, allowing for reinstatement with seniority, double back pay, interest on back pay, compensation for discriminatory treatment, and reasonable legal fees. Federal legislation in 1978 barred reprisals...
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Zanesville
Book article from: The Columbia Encyclopedia, Sixth Edition
...location on waterways and the National Road spurred its growth. An art institute and a campus of Ohio Univ. are in the city. Of interest are the National Road-Zane Grey museum, several early homes of Federal design, and the nearby Ohio Ceramic Center. A state...
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Hugo Stinnes
Book article from: The Columbia Encyclopedia, Sixth Edition
...German industrialist. The son of a Westphalian mine owner, he founded his own company in 1892 and rapidly expanded his interests to build a huge "vertical trust" controlling mines, foundries, shipping, paper mills, and other industries. He owned...
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Swabian League
Book article from: The Columbia Encyclopedia, Sixth Edition
...helped defeat the peasants in the Peasants' War . The dissolution (1534) of the league resulted from the opposition of interests between its feudal members and its cities and from the religious split caused by the Reformation. Many Protestant members...
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Jan Swammerdam
Book article from: The Columbia Encyclopedia, Sixth Edition
...Dutch naturalist. He was a pioneer in the use of the microscope. Before he turned to religious contemplation his chief interest was the study of invertebrates. He investigated the life histories of frogs and of numerous insects, which he classified...
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