Sentences with phrase «interest over the life of the investment»

This means that $ 1000 investment in 3 - month bills now gets you a nickel of interest over the life of the investment.

Not exact matches

Generally, you calculate the hurdle rate by adding together the risk - free interest rate, a measure of inflation expectations over the life of the project and a premium to compensate for the investment's risk.

While the market value of a floater under normal circumstances is relatively insensitive to changes in interest rates, the income received is, of course, highly dependent upon the level of the reference rate over the life of the investment.

Think about what the interest will cost you over the life of the loan, consider whether you can get investment / loan from other sources (perhaps separately) for less total cost, make appropriate decision.

These are safe investments because you can expect the principal to be returned to you, plus the interest that the investment has made over the course of its life span.

If the new score helps you get into your new home or pay lower interest expense over the life of the loan, the fee you pay for rapid rescoring may be the best investment you've ever made.

The larger issue is that I have to live somewhere and my family needs a roof over their head and I will not risk that for any «gamble» on the hopes of a big investment lucky strike or giving me a couple percent more than the interest on the mortgage or the risk to my family's habitat.

It's also a type of cash - value life insurance that has an investment option that gains interest over time.

So like Florida term life insurance you have insurance coverage, but you also have an investment, or «cash value», that accrues over time and usually gets a small rate of interest.

Over time, less premium will be paid into a whole life contract when compared to an annual renewable term life insurance policy because the whole life insurance uses premium plus investment interest to hold down the cost of insurance and the annual renewable term does not.

I believe using the whole life to leverage investments in real estate can help you minimize the effect of interest paid to banks and by doing it right and structuring the policy to maximize the cash value it can compound pretty well over time.

Conversion costs are minimal, and converting to whole life gives you the ability to participate in the management of the policy, enjoy a tax deferred status on your insurance investment, and borrow interest free against the accrued balance over the life of the policy.

For EB - 5 deals marketed through these agents, developers can expect to pay a fixed rate of interest, or preferred return on capital raised, of 5 - 8 percent annually over the five - year expected life of the investment.

And an investment is exactly how you should view it because you get to save on mortgage interest that is usually paid over the life of the home loan - interest that could amount to several thousand dollars, conceivably hundreds of thousands of dollars.