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: ...
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 ...
If the LTV ratio is higher than 80%, a borrower may be required to purchaseprivate mortgage insurance (PMI). This can add anywhere from 0.5% to 1% to the total amount of the loan on an annual basis. For example, PMI with a rate of 1% on a $100,000 loan would add an additional ...
Financial institutions typically offer rates in terms of the prime rate plus or minus a certain percentage. And the rate you’re offered depends on conditions in the lending markets and on factors, like your credit, the amount you’re borrowing and whether the loan is secured. How often does...
Auto loan debt: Monthly payments on auto loans, including both new and used vehicles factor into your debt-to-income ratio. Lenders may consider the amount owed, interest rate, and remaining repayment term when determining the impact auto loans have on your overall DTI ratio. ...
What is the interest rate on a loan of $8,000 with a payment of $222.65 per month for 4 years?Loan AmountThe loan amount refers to the borrowed amount from the third party. The third party can be banks, financial institutions, an individual or any entity. ...
Average overall rate:8.45% 10-year fixed home equity loan:8.57% 15-year fixed home equity loan:8.53% The average HELOC rate nationwide is 8.28% as of January 24, 2025. What rate do you qualify for?See today's home equity optionsto find out!
Loan recovery rate is an important index to measure the management level of commercial banks, and it is very effective for commercial banks to control loan risks and improve the quality of credit assets by mastering the true value of raw materials, produ
Also, as you’ll see in our article about upfront costs versus monthly payments, a 0% payment rate doesn’t necessarily mean a consumer is being charged 0% interest overall. For instance, the auto buyer with the 0% loan may have had to choose that loan over, say, a $1500 cash back...
The bottom line A purchase APR is the interest rate that applies to purchases you make with a credit card. Other transactions, like cash advances and balance transfers, may have different APRs. The regular purchase APR applies when no other interest rate takes precedence. For example, if your...