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Interest compounded annually

• Is calculated by the following formula:

Amount = (1 + interest rate)t where i is the interest rate and t is expressed decimally (.05 for 5 percent). Also, t is the time and .5 refers to 1/2 of a year, 2 equals 2 years and 7.75 equals 7 3/4 years.

 
 

Follow this link for all the terms related to interest.

 
 Embedded terms in definition
 Interest rate
Interest
Time
 
 Related Terms
 
Accrued interest
Amortizing interest rate swap
Base interest rate
Benchmark interest rate
Capitalized interest
Cash flow after interest and taxes
Compound interest
Compounded interest
Covered interest arbitrage
Earnings before interest and taxes
Effective annual interest rate
Effective interest rate international context
Equilibrium rate of interest
Forward interest rate
Future value interest factor
Future value interest factor for an annuity
Gross interest
Guaranteed investment interest contract
Indication of interest
Interest
Interest calculations and related formulas
Interest compounded continuously
Interest coverage
Interest coverage ratio
Interest coverage test
Interest discounted annually present value of reversion
Interest discounted continuously
Interest equalization tax
Interest equivalent factor
Interest impact on accumulation of 1 per period
Interest impact on instalment to amortize or amortization
Interest impact on present value of ordinary annuity of 1 per period
Interest impact on sinking fund factor
Interest on interest
Interest only
Interest only strip
Interest payments
Interest rate
Interest rate agreement
Interest rate buydowns
Interest rate cap
Interest rate ceiling
Interest rate exposure
Interest rate floor
Interest rate on debt
Interest rate parity theorem
Interest rate risk
Interest rate risk management
Interest rate swap
Interest subsidy
Interest tax shield
Minority interest
Net interest margin
Nominal interest rate
Nominal interest rate international context
Nominal rate of interest
Open interest
Present value interest factor
Present value interest factor for an annuity
Rate of interest
Real interest rate
Real rate of interest
Short interest
Simple interest
Spot interest rate
Stated annual interest rate
Swap interest rate
Term structure of interest rates
Term structure of interest rates and volatility
Times interest covered
Times interest earned ratio
True interest cost

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