InvestorWords.com

Process of assessing interest to a loan and either having the interest paid before the loan is dispersed to the recipient or adding a percentage of the interest on each monthly payment on the loan. The latter is the most common method used. A loan recipient will typically receive a monthly loan statement that shows how much money went towards the interest on the loan and how much of the payment went towards the principal.

• Understanding the True Cost of Credit Cards
• Rearranging a Portfolio with ETFs
• Tax Implications of Different Types of Investments
• Tips on Retirement Planning
• Buying and Selling Bonds
• "Sell Naked Put" Stock Option Investment Strategy

Featured Advertiser