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# Interest and Interest Rates

Module by: Rudy Lopes. E-mail the author

Summary: Interest is the price of using money over time, hence it is a direct measure for the time value of money. These resources can help you master the concepts behind interest, interest rates, and compounding.

About Interest Rates - The topic of interest rates are more complicated than you might think. This tutorial covers the relevant terminology, including APR, APY, and the yield curve.

Average Daily Balance - The Average Daily Balance is the total of the balance at the end of each day during a period divided by the number of days in the period. Learn how to calculate average daily balance (ADB) in this tutorial.

Compound Interest Made Simple - Compound interest is the method of finding interest where interest is charged on the principal as well as the interest already accumulated. Review a simpler method for finding compound interest with this tutorial.

Compound Interest - Calculating compound interest, as used in mortgages, is now much easier. Learn how to find the interest using the principal, number of compounding periods, and interest rate. Use your own values for an added bonus!

Compound Interest - Bottomless Worksheet - Use this Bottomless Worksheet to get endless practice calculating compound interest from the principal, number of periods, and interest rate. Ten new problems to solve, a printed copy, and an answer sheet are all only a click away.

Simple Interest - Calculating simple interest is a snap with this Formula Solver. Learn how to find the interest using the principal, number of interest periods, and interest rate. Use your own values to check your homework!

Simple Interest - Bottomless Worksheet - With this Bottomless Worksheet you can get endless practice on calculating simple interest from the principal amount, number of periods, and interest rate. A printed copy, answer sheet, and another ten problems are all just a button-click away.

Rule of 78 - The Rule of 78 is a method of allocating interest charges for the life of a loan. Learn how the Rule of 78s works in this tutorial.

Ratios of Debt Management: Study Sheet - Learn about Debt Ratio, Debt to Equity Ratio, EBITDA Coverage Ratio, Equity Multiplier, and TIE Ratio with this printable Smartacus Study Sheet.

Debt Ratio - The debt ratio indicates how much of a company's assets are provided through debt. This is the proportion of funding that is provided by creditors. This interactive tutorial walks you through the calculations, including where Total Assets and Total Liabilities are on the Balance Sheet.

Debt to Equity Ratio - The debt to equity ratio indicates how much of a company's financing is provided through debt as compared to equity. This interactive tutorial walks you through the calculations, including where Total Assets and Total Liabilities are on the Balance Sheet.

EBITDA Coverage - The EBITDA coverage ratio shows if earnings are able to satisfy all financial obligations including leases and principal payments. (EBITDA is short for earnings before interest, taxes, depreciation, and amortization.) This interactive tutorial walks you through the calculations, including where to find the numbers on the financial statements.

TIE Ratio - The TIE Ratio shows the ability to pay interest charges out of earnings. (TIE stands for times interest earned.) This interactive tutorial walks you through the calculations, including where to find the numbers on the financial statements.

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