Simple interest is the interest charge on borrowing that's calculated using an original principal amount only and an interest rate that never changes.
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Discount interest refers to a loan where the interest on the loan is deducted from the loan up front.
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Compound interest is the interest on savings calculated on both the initial principal and the accumulated interest from previous periods.
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The term "annuity" refers to an insurance contract issued and distributed by financial institutions with the intention of paying out invested funds in a fixed income stream in the future.
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A perpetuity is a security that pays for an infinite amount of time. In finance, perpetuity is a constant stream of identical cash flows with no end.
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