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Net 10, net 15, net 30 and net 60 (often hyphenated "net-" and/or followed by "days", e.g., "net 10 days") are payment terms for trade credit, which specify that the net amount (the total outstanding on the invoice) is expected to be paid in full by the buyer within 10, 15, 30 or 60 days of the date when the goods are dispatched or the service is completed.
For example, a nominal interest rate of 6% compounded monthly is equivalent to an effective interest rate of 6.17%. 6% compounded monthly is credited as 6%/12 = 0.005 every month. After one year, the initial capital is increased by the factor (1 + 0.005) 12 ≈ 1.0617. Note that the yield increases with the frequency of compounding.
By comparison the underlying index for a cap is frequently a LIBOR rate, or a national interest rate. [1] The extent of the cap is known as its notional profile and can change over the lifetime of a cap, for example, to reflect amounts borrowed under an amortizing loan. [1] The purchase price of a cap is a one-off cost and is known as the ...
Finance. The loan-to-value ( LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. In real estate, the term is commonly used by banks and building societies to represent the ratio of the first mortgage line as a percentage of the total appraised value of real property.
If a bank can obtain 3-year borrowing at 3% but is only paying 2% on their 3-year customer deposits (CDs) then each CD is providing 1% of the value each of the 3 years it is open. The net interest margin assigned to the CD would be 1% multiplied by the balance in each of the 3 years. The same calculation is made on the loan side.
An ultra-high-net-worth individual (UHNWI) holds at least US$30 million in investable assets (adjusted for inflation). In 2013, there were 211,275 UHNWIs in the world, with a total combined net worth of US$29.7 trillion. [RS 1] [9] Billionaires are a special category of UHNWI, having net worth in excess of US$1 billion. According to the ...
For example, a bank has average loans to customers of $100, and earns gross interest income of $6. The interest yield is 6/100 = 6%. A bank takes deposits from customers and pays 1% to those customers. The bank lends its customers money at 6%. The bank's net interest spread is 5%. References
Income needed to make the top 1%: $588,575. If the new proposed tax plan is passed into law, those who earn more than $1 million a year will pay 10.75% in state income taxes, as opposed to the 8. ...