Term
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Definition
| Amount of interest earned on the pricipal amount stated |
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Term
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Definition
| base amount that we borrow or save |
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Term
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Definition
| simple interest loans provided to borrowers who need a temporary loan to provide funds between sale of one piece of property and the purchae of another piece of property |
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Term
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Definition
| amount of interest that is deducted from the amount you wish to borrow |
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Term
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Definition
| earned/charged on both the principle amount and on the accrued interest that has been previously earned or charged |
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Term
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Definition
| rate of interest that is listed, normally on an annual basis, and it disregards compounding |
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Term
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Definition
| actual rate that is paid by the borrwer or earned by the investor after compounding is taken into consideration |
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Term
Internal Rate of Return
(IRR) |
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Definition
| actual rate of return that equates a dollar invested now with a dollar received in the future. |
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Term
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Definition
used to find an approximation of the amount of time it takes a present sum of money to double.
Divide the number 72 by the interest rate. |
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