A person whose spouse has died within the tax year and who may file a joint tax return for that year. Additionally, the surviving spouse can file joint returns for the next two years if they remain unmarried and maintain a household as the principal residence for a dependent child.
Simple Interest
[SIM-pul IN-tuh-rist]
What is the definition of Simple Interest?
Interest calculated solely on the initial principal amount of a loan or investment, without compounding on accumulated interest.
Using Simple Interest in an Example
For example, if you invest $1,000 at an annual simple interest rate of 5%, you would earn $50 in interest each year, resulting in a total of $150 in interest over three years.
Using Simple Interest in a sentence
When calculating the returns on the short-term bond, we used a simple interest formula since the interest does not compound.
Related Terms
Swap
A financial contract in which two parties agree to exchange streams of payments over a specified period, based on different indices such as interest rates, foreign exchange rates, or equity indices, applied to a notional amount. Swaps typically do not involve the exchange of principal.
Deferred.com Resources
Recent Posts
