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because divends are the money given by the companies in which u have invested
if the dividends are less than the intrest rates no body will invest in longterm because of having high risk profile in share market
one main reason company will gain the profits in larger amount as compared to the intrest rates
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∙ 11y ago
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Does a credit union have a higher interest rate than a bank?
They do usually have a higher interest rate, but it's only about .25 to .50 percent higher.
Is it better to pay off a credit card with a low interest rate first or a second card with a higher interest rate?
Of the two - you're better off paying the higher-rate card first. If you spread the cost of the higher-rate card over a loinger period - you'll pay more interest, than if you pay the same instalments to the lower-rate card.
Is the interest on used car loans higher than the interest on new car loans?
The interest on used car loans are definitely higher than new car loans.The rate is higher because the car is usually not bought from a car sales house
What is higher APR or interest rate in mortgages?
The APR is the rate plus certain fees over the life of the loan. If there are no fees, the rate and APR are the same. If there are fees, the APR is higher than the rate. The more fees, the higher the APR.
Is the annual percentage rate usually lower than the actual interest rate on the loan?
The actual interest rate on a mortgage will always be higher than the annual percentage rate unless the borrower keeps the loan for the full term. Refinancing or selling before the end of the term results in a much higher actual (effective) interest rate. The effective rate on a mortgage can be lower than the annual percentage rate (fixed rate) by paying extra to principal especially early in the mortgage term.
Is LIBOR normally higher or lower than the US prime interest rate?
It is normally higher than the US prime interest rate.
Does a credit union have a higher interest rate than a bank?
They do usually have a higher interest rate, but it's only about .25 to .50 percent higher.
Will you earn a higher interest rate with a variable annuity than with a fixed annuity?
Yes, you do earn a higher interest rate with a variable annuity than with a fixed annuity. It depends on what kind of interest rate you have at the moment.
What negotiable instrument has a higher interest rate than most savings accounts?
Certificates of Deposit will usually have a higher interest rate than saving accounts.
Do you have to pay a higher interest rate other than the one on contract?
Depends if the terms of the contract allows the interest rate to be changed.
Suppose a borrower and lender agree on the nominal interest rate to be paid on a loan and the inflation turns out to be higher than they expected Is the real interest rate on this loan higher?
the real interest rate equals nominal interest rate minus inflation rate. In the situation the inflation rate increase and the nominal interest rate remains unchanged, therefore the real interest rate must decrease.
What occurs when a bond's stated interest rate is less than the market interest rate?
Since the current market interest rate is higher, it is more attractive to a new investor then the bond with a lower interest rate. Thus, the price of the lower interest rate bond has to decline to be competitive with new bonds in the market.
What occurs when a bonds stated interest rate is less than the market interest rate?
Since the current market interest rate is higher, it is more attractive to a new investor then the bond with a lower interest rate. Thus, the price of the lower interest rate bond has to decline to be competitive with new bonds in the market.
Is it better to pay off a credit card with a low interest rate first or a second card with a higher interest rate?
Of the two - you're better off paying the higher-rate card first. If you spread the cost of the higher-rate card over a loinger period - you'll pay more interest, than if you pay the same instalments to the lower-rate card.
I have poor credit, is it still possible to get personal loans without paying a ton of interest?
Loans, in general, are based on risk. The higher the risk, the higher the interest rate. You'll be able to get a loan, but the rate will be higher than if you had better credit.
Is the interest on used car loans higher than the interest on new car loans?
The interest on used car loans are definitely higher than new car loans.The rate is higher because the car is usually not bought from a car sales house
What is higher APR or interest rate in mortgages?
The APR is the rate plus certain fees over the life of the loan. If there are no fees, the rate and APR are the same. If there are fees, the APR is higher than the rate. The more fees, the higher the APR.
