ANTICIPATED INTEREST

The amount of interest which a savings vehicle will amass on some future date, given that there no withdrawals or deposits within the intervening period. The anticipated interest is a part of compound interest. For example, a $,1000 certificate of deposit with a 2% annual interest interest rate that is up for one year is expected to have an anticipated interest of $20.15. The anticipated interest can also depict to the total interest amount which is expected to be paid on a loan on a given payoff date, such as a car or mortgage load. In such case that the loan is repaid early, the actual interest will not be the same as the anticipated interest.