Finance Methods

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August 31, 2024 4 min read Definitions
Straight-Line Amortization: Understanding the Equal Allocation of Interest
Finance Accounting Amortization Bonds Financial Accounting Interest Expense Finance Methods
A detailed exploration of Straight-Line Amortization, a method that allocates equal interest expense across all periods, disregarding the bond's book value changes.
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August 24, 2024 3 min read Definitions
The Rule of 78: Understanding Interest Calculations and Lender Practices
Finance Banking Interest Calculation Lenders Loans Finance Methods Rule of 78
A comprehensive overview of the Rule of 78, how lenders use it to calculate interest charges on loans, the method for calculation, and implications for borrowers.
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