What is the effective annual interest rate for a 1-year $100 million loan with a stated interest rate of 8%, if the lending bank requires a non-interest bearing compensating balance in the amount of $5 million?A. 7.62% B. 8.00% C. 8.42% D. 13.00% 正确答案:C 分享到: 答案解析: ...
Fair interest rateLending to the poorMicrofinanceThis paper analyses how much is fair interest rate when lending to the poor. Empirical works of literature on microfinance interest rates are investigated to explain the basis of the exigent ethical debates. To further understand the fairness of an ...
8% is the stated rate of interest. The effective annual interest rate on a loan with a compensating balance when no interest is received on the compensating balance is the annual interest due divided by the net funds the borrower will have available to use. That will be a different rate ...
Retail lending is the process of making financial loans to individual people instead of businesses. The main types of retail loans...
Lending (also known as "financing") occurs when someone allows another person to borrow something. Money, property, or another asset is given by the lender to the borrower, with the expectation that the borrower will either return the asset or repay the lender. In other words, the lender gi...
Unlike an interest rate, however, it includes other charges or fees such as mortgage insurance, most closing costs, discount points and loan origination fees. Why the difference? The APR is intended to give you more information about what you’re really paying. The Federal Truth in Lending ...
a lending institution has a right to exclude when calculating the APR. Still, even if this calculation is imperfect, it’s generally a better basis for comparison than interest rates alone. Such a comparison should be followed by further scrutiny before determining the most attractive lending ...
With a unitranche agreement, senior and junior debt combine into a single loan with a mixed interest rate and a predictable repayment schedule. Is direct lending the same as private debt? In a direct lending agreement, an asset manager sells the loan to many different investors. In a private...
The lender’s lending terms structure the contract with an interest rate floor provision, which means that the rate is adjustable based on the agreed-upon market rate until it reaches the interest rate floor. A loan with an interest rate floor provision has a minimum rate that must be paid ...
A simple interest rate of 4% annually translates into an annual interest payment of $12,000. After 30 years, the borrower would have made $12,000 x 30 years = $360,000 in interest payments, which explains how banks make money through loans, mortgages, and other types of lending. Compoun...