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Accrual Rate

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Accrual Rate
The interest rate that is charged on a loan or bond but is not paid until a later date. For example, if one pays the interest on one's mortgage every month, the accrual rate is the interest rate charged to the principal of the mortgage each day of a month until the payment is made.


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Almost two-thirds of firms provided defined benefit, or final salary, schemes for some directors, with more generous accrual rates than for other scheme members, the report said.
Pretax income was actually higher in the second quarter of 2010 due to a lower provision for loan losses and a reduction in non-interest expense, but our tax accrual rate was higher because tax-exempt income on bank-owned life insurance declined.
The testing formula requires that the proportion of HCEs at an accrual rate (60) not be greater than 70% of the proportion of NHCEs at the same or greater accrual rate.
 
 
 
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