When interest rates rise, existing borrowers with lower-interest loans have the advantage. But potential borrowers are at a disadvantage in this environment because high interest rates may drive up the amount of their monthly mortgage payments, for example, beyond the threshold they can afford. This...
While financial institutions are required to show rates as APY, they can also show the corresponding interest rate. When it comes to your savings account, it’s more important to know the APY, because knowing the rate that includes compound frequency (that is, how often interest is paid) wil...
the amount of interest that must be paid ; it is expressed as a percentage of the amount that is borrowed or gained as profit. A. interest rate B. altitude C. number D. benefit 相关知识点: 试题来源: 解析 答案:A A. interest rate (利率) B.altitude (高度) C.number (数量) D...
An interest rate refers to the amount charged by a lender to a borrower for any form of debt given, generally expressed as a percentage of the principal.
TYPES OF INTEREST RATES The prime rate is the best known of the various interest rates that are utilized. This non-fluctuating rate is the one usually employed by banks when it makes short-term loans to large borrowers such as corporations. Established by the banks themselves, the prime rate...
Banks charge fixed rates or variable rates. Fixed rates remain the same throughout the life of the loan. Initially, your payments consist mostly of interest payments. As time goes on, you pay a higher and higher percentage of the debt principal. Most conventional mortgages are fixed-ra...
Interest rates are calculated in two ways. Simple interest is tallied as a percentage of the principal over time; compound interest (also called compounding interest) includes accrued interest along with the principal. Most loans and savings deposits use compound interest. An interest rate may be ...
Personal loan interest rates are expressed as a percentage of the amount you borrow. Most personal loans are unsecured—that is, not backed up by a recoverable asset or collateral. Unsecured personal loans charge a higher interest rate than secured loans. Personal loan interest is calculated using...
6)Interest rates are impoitant to financial institutions since an interest rate uicreasethe cost of acquiring funds andthe income fiom assets. A)decreases; decreases B)increases; increases C)decreases; increases D)increases; decreases Answer: B Topic: Chapter 1.1 Why Study Financial Maikets Questi...
economists use real interest rates to measure the actual cost of lending money. Real interest rates are calculated by adding an inflation component to the nominal interest rate. This can be more complicated than nominal rates, but they give a more accurate...