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Under the lax terms of many buyout loans (deemed "covenant lite"), borrowers could delay payments, say, by issuing i.o.u.'s in lieu of payment or adding the interest to the loan balance rather than paying it.
After adding the interest costs that stem from using the surplus for any purpose other than debt reduction -- $312 billion in this case -- the total Bush budget comes to about $2.1 trillion, or just $70 billion less than the anticipated surplus.
In that event, the lender is adding the interest for May to your loan balance, so you will be paying interest on it for as long as you have the loan.
Before adding the interest expense, multiply it by the quantity "1 minus the tax rate on this type of income".
Adding the interest expense from borrowing the money to pay for all that tax relief would lead to a total drain on the Treasury of nearly $2 trillion through 2014.
Similar(55)
That said, she added, "the interest since the price went down has been significant".
But he added, "The interest in the case and the pressure has lost momentum".
"They discounted at 5% in order to allow for interest on the capital, then added the interest as well," he says.
It added: "The interest shown in the LME, where total trading volumes are currently at record levels, reflects the importance of the exchange in global commodities markets".
He added: "The interest is so great we predict lenders will need to put a cap on the amount they lend under the scheme".
The company will add the interest on the balance as of Oct. 16, and the funds will be available Oct. 31 for purchases at Toys R UsUs and Babies "R" Us stores and Web sites.
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