INTEREST RATE

Interest Rate

the percentage that a lender charges a borrower for using the money.

Interest Rate on Borrower

take out loans and aggree to repay the amount they borrow over time.

Interest Rate on Investors

refers to the way money grows over time when you invest at the cetain interest rate.

Principal

The initial amount borrowed/invested.

Interest

The cost of borrowing money or return of investment .

Annual Percentage Rate

Annual rate standard for borrowing or earning in investment.

Discount Rate

interest rate used to determined the present value.

Interest Payment

Amount paid periodically for borrowing money.

Long term

duration over which load is to be repaid.

Simple Interest Rate

calculated only on the initial principal amount fixed period.

Compound Interest Rate

calculated on both principal and accumulated interest.

Fixed Interest Rate

remains constant throughout the loan or investment period.

Variable interest Rate

Fluctuates over time depending on the benchmark rate.

Nominal Interest Rate

interest rate on a loan or investment without considering inflation.

Real Interest Rate

interest rate adjusted for inflation.

Time Deposits

an interest- bearing bankc amount and has a maturing set of date

Saving Accounts

Interest on savings account paid by bacnk or credit union.

Treasury Bill

are peso dominated short term fixed income securities issued by the Republic of the Philippines.

Bond

a fixed income instrument and investment product where individuals lends money.

Government Bond

type of debt-based investment where loans/money to a government agreed on rate interest.

Corporate Bonds

are called “investment grade” issued by credit worthy companies.

Investment- Grade Bonds

issued by companies with strong credit ratings.

High- Yield Bonds

Issued by companies with lower credit ratings.

Convertible Bonds

debt instruments that can be converted into specialized equity.

Secured and Unsecured Bonds

backed up by specific assets.

Fixed Deposit

tenured deposit account provided by banks or non-banking institution.