Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post - Who's good with Finance Calculators (online)?

Mike F · 11-20-2010, 03:48 PM

I'm no financial expert, but it seems to me that "Bank Interest" is the amount of interest you have to pay to the bank over the term of the loan, and "Interest Earned" is the amount of interest you could earn by taking the amount of money it would take to buy the equipment (which depreciates, thus the negative Interest Earned when you buy it outright) and investing it in an appreciating asset (e.g. stock or property in a growing economy)

11-20-2010, 03:48 PM	#3
Mike F Franchise Player Join Date: Jul 2003 Location: Djibouti Exp:	I'm no financial expert, but it seems to me that "Bank Interest" is the amount of interest you have to pay to the bank over the term of the loan, and "Interest Earned" is the amount of interest you could earn by taking the amount of money it would take to buy the equipment (which depreciates, thus the negative Interest Earned when you buy it outright) and investing it in an appreciating asset (e.g. stock or property in a growing economy)