Explain about interest rate, Macroeconomics

Assignment Help:

Q. Explain about Interest rate?

When you borrow money, you normally have to pay a fee for the loan. This fee is frequently known as interest, especially if the fee is proportional to amount you borrow. Interest rate is commonly represented as a percentage of the size of the loan per unit of time, characteristically per year. If interest rate is 10% per year, you should, for instance, pay 1,000 per year if you borrow 10,000. 

Interest rate may be floating orfixed. If it is fixed, you would pay the same percentage for the complete duration of the loan. With a floating interest rate, interest rate will change regularly depending on market conditions.

Interest rate for a specific loan relies on the general level of interest rates as well as the specifics of the loan. Factors like risk (probability that loan won't be repaid), duration of the loan and whether you select a fixed or a floating rate will influence the interest rate.


Related Discussions:- Explain about interest rate

Feds actions on gdp impact, Suppose the banking system has reserves of $750...

Suppose the banking system has reserves of $750,000, demand deposits of $2,500,000 and a reserve requirement of 20%. a) If the Fed now purchases $125,000 worth of government bon

Illustrates about the terms of elasticity, Illustrates about the terms of e...

Illustrates about the terms of elasticity? • Definition of elasticity a. Price elasticity of demand b. Income elasticity of demand and c. Price elasticity of supply

Hurricane or flood or a pandemic strikes, When a hurricane or flood or a pa...

When a hurricane or flood or a pandemic strikes a country, who is most likely to respond first?

Internal market forces, what are some internal market forces and how is the...

what are some internal market forces and how is the outcome of output, jobs, prices, growth, and international balance

Wi cost of debt and wacc, hi I just found an interesting problem on your pa...

hi I just found an interesting problem on your page,(wood investments ... Mutch PLC) I would like to see the answer Could you please give me a quote for the answer?

Intermediate macroeconomics, An economy's IS and LM curves are given by the...

An economy's IS and LM curves are given by the following equations: with Y indicating output (income), c indicating the marginal propensity to consume, I investment, G gove

Analyse the assumptions of price elasticity, In an article about the financ...

In an article about the financial problems of USAToday,News week reported that the paper was losing about $20 million a year. A Wall Street analyst said that the paper should raise

Explain different levels of a hypothetic, Suppose that a public park is vis...

Suppose that a public park is visited by people living in five concentric zones around the park. Each zone has a population of 5000, and the total travel cost for a visit to the pa

Outline two main restrictions by indian government applied t, outline two m...

outline two main restrictions by indian government applied to import. Using the data from your case study analyse and explain who would benefit directly and who would lose directly

Country personal consumption expenditures, If in some country personal cons...

If in some country personal consumption expenditures in a specific year are $50 billion, purchases of stocks and bonds are $30 billion, net exports are $-10 billion, government pur

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd