interest earned
amount earned on interest bearing accounts or other investments
Interest earned refers to the amount of money earned on an investment over a certain period of time. Interest is typically calculated as a percentage of the investment, known as the interest rate. The amount of interest earned depends on factors such as the interest rate, the amount of the investment, and the length of time the investment is held.
For example, if you invest $10,000 in a savings account with an annual interest rate of 2%, you would earn $200 in interest over the course of one year. This is calculated by multiplying the investment amount ($10,000) by the interest rate (2%) and then by the length of time (1 year).
It’s important to note that interest earned may be subject to taxes, and the amount earned may also be impacted by fees, inflation, and other factors. Additionally, not all investments earn interest – other types of returns, such as dividends or capital gains, may be earned instead.
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