interest paid on the principal alone
- The interest rate applied is a simple interest rate based on the day-count convention “actual/360”.
- To these must be added the simple interest calculated in accordance with the Commission’s reference interest rate.
- The interest rate applied is a simple interest rate based on the day-count convention ‘actual/360’.
- The aid to be recovered must include accrued interest calculated in accordance with the simple interest method (see recital (101)).
- The interest rate applied to the deposit is a simple interest rate based on the day-count convention ‘actual/360’.
- The calculation of simple interest uses the formula Interest = (Capital × Interest rate × Number of years).The calculation of compound interest, compounding on a yearly basis uses the formula Interest = (Capital (1 + Interest rate) Number of years) – Capital.
- The interest rate is announced in advance by the Eurosystem and is calculated as a simple interest rate based on the day-count convention ‘actual/360’.
- The interest rate applied to Eurosystem reverse open market operations is a simple interest rate based on the day-count convention ‘actual/360’.
- The question has arisen whether this interest rate should be applied on a simple basis or on a compound basis .
- Therefore, the interest rate differential will often give a higher amount of benefit than a simple allocation of the face amount of the loan over time.
- i.e. the sum of the intra-stratum variances defined asΣ hΣieh1nxi – xh–2 is to be substantially lower than the total variance of the reporting population defined as Σni=l1nxi – x–2, where h indicates each stratum, xi the interest rate for institution i, x–h the simple average interest rate of stratum h, n the total number of institutions in the sample and x– the simple average of interest rates of all institutions in the sample.’
- Therefore, the Commission concludes that even on the basis of a simple calculation it is evident that KK would not have been able to replace its two interest-free loans with a loan at the market rate.
- The exemptions from withholding tax and capital duty were maintained for coordination centres and extended to other undertakings; the deduction for notional interest is a purely tax transaction and thus simple to apply.
- For this reason, Farm Dairy requested the application of a simple interest rate because if it had known that the aid was illegal and if it had had the choice, it would have chosen to repay the sum earlier.
- In market practice, simple interest would normally be calculated where the beneficiary of the funds does not have use of the interest amount before the end of the period, for example where interest is only paid at the end of the period.