Interest Rates 101

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1. Simple Interest Fundamentals

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  • 1
    Return: a profit from an investment
  • 2
    Proportional: having a constant ratio to another quantity
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    Annual percentage: the interest rate for a whole year
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    period: a length or portion of time
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    Actual: Existing in fact
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    Convention: a way in which something is usually done
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    Capitalise: Adding interest income to the capital or sum invested