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

Economic data required for the assignment, Must use current data! I do not ...

Must use current data! I do not need a response until later this week, so take your time. In addition, I will be using your information as reference only. I will not plagiarize. Th

Average cholesterol level, In a sample of 80 people who have had strokes, t...

In a sample of 80 people who have had strokes, the average cholesterol level was 250 with a standard deviation of 70. In order to test the hypothesis (at the 5% level of significan

Calculate market equilibrium price and quantity, We will continue with the ...

We will continue with the familiar demand curve homework the previous section Let the market demand for goods be with a linear curve:    (p =A q D /10), where it is known

Explain about IS-LM-model, Q. Explain about IS-LM-model? The key differ...

Q. Explain about IS-LM-model? The key difference between the IS-LM model and the cross model is that nominal interest rate is exogenous in cross model on the other handit is en

Explain between perfect competition and monopoly market, "No point is bette...

"No point is better accepted than the fact that the monopoly price is higher and the output smaller than what is socially ideal. The public is the victim." (a) Explain between

Utility maximisation - graphical presentation , Utility Maximisation: ...

Utility Maximisation: Graphical Presentation  Let consider a two-commodity world, x 1 and x 2 representing good I and good II respectively. p 1 and p 2 are the prices o

Propensity, different determinants of propensity to consume

different determinants of propensity to consume

Policy position by utilizing the examples, While referring to the "EYE on Y...

While referring to the "EYE on YOUR LIFE" section on page 183 of the textbook, apply this concept to your life. Develop your own policy position on price floors and price ceilings.

Retirement planning, For retirement planning, you decided to deposit $1,000...

For retirement planning, you decided to deposit $1,000 per month and increase your deposit by $100 per month. How much will you have at the end of 10 years if the bank pays 3% annu

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