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LSDefine

Simple English definitions for legal terms

imputed interest

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A quick definition of imputed interest:

Imputed interest is when someone is charged interest on a loan even if they didn't actually pay any interest. It's like pretending they paid interest and then charging them for it. It's not fair, but sometimes it happens.

A more thorough explanation:

Imputed interest is a type of interest that is not actually paid, but is instead calculated and added to the cost of a loan or investment. This is done to account for the time value of money and to ensure that the lender or investor is compensated for the use of their funds.

For example, let's say that you borrow $10,000 from a friend and agree to pay it back in one year with no interest. However, if the prevailing interest rate is 5%, your friend could impute interest of $500 (5% of $10,000) and add it to the loan amount. This means that you would actually owe $10,500 at the end of the year.

Another example of imputed interest is when a company issues bonds with a below-market interest rate. In this case, the IRS may impute additional interest income to the bondholders to ensure that they are paying taxes on the full value of the investment.

Overall, imputed interest is a way to account for the time value of money and ensure that lenders and investors are fairly compensated for the use of their funds.

imputed income | imputed knowledge

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Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
soapy
8:48
UMN under review! As predicted, decisions are gonna come out early December
Minus those random R decisions from UMN yesterday though right? I wonder what happened there. I don’t think I’ve seen a school start the season out with anything but As on here
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