Liquidating loan definition

27 Apr

Simple interest does not compound and increase the loan balance.The amount of interest to be paid for each monthly payment cannot increase.

For example, consider a loan with a 0 monthly payment, 6-percent interest rate and a ,000 balance.

The other type of car loan -- pre-computed loans -- are rarely used and should be avoided.

The "simple" in a simple interest loan means that interest is only calculated on the outstanding principal balance.

In finance, margin is collateral that the holder of a financial instrument has to deposit with a counterparty (most often their broker or an exchange) to cover some or all of the credit risk the holder poses for the counterparty.

This risk can arise if the holder has done any of the following: The collateral for a margin account can be the cash deposited in the account or securities provided, and represents the funds available to the account holder for further share trading.