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How do you convert diminishing rate of interest to flat rate of interest?
Wiki User
∙ 10y ago
Converting the flat rate of interest to diminishing rate and vice versa takes into account the payments the loan entails. Flat interest rates reflect the amount of interest you will pay if no payments over time are made. Diminishing interest rate factors in that after a payment is made, your over all loan balance will be less, there for your next payment will have slightly less principal balance for interest to be calculated on.
Wiki User
∙ 10y ago
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How do you convert annual interest rate to monthly?
Let i = annual rate of interest. Then i' = ((1+i )^(1/12))-1 Where i' = monthly rate of interest
The amount of interest is determined by multiplying the amount in savings by the?
Annual interest rate
What is the simple definition of base rate?
Base rate is the rate of interest which is considered as a basis by commercial bank for their lending rate..
The annual interest rate of Paul's savings account is 7.2 and simple interest is calculated monthly What is the periodic interest rate of Paul's account A1.8 B0.6 C0.4 D0.9?
7.2/12 = 0.6
How do you convert rate per 1000 to percentage?
0.0026%
How we can convert diminishing rate to flat rate?
diminishing rate / 1.85 = flat rate
How do you compare Diminishing Interest to Float Interest?
You have confused between the terms. Simple interest and interest at flat rate is one and the same. The other type of interest is diminishing balance or reducing balance. These are interests associated with loans or finances sought. Well a simple rule of thumb is that usually simple interest rate is about half of rate on reducing balance. For e. g. if rate at reducing balance is 12% then simple interest for the same will be around or just more than 6%
What is the difference between flat rate and reducible interest?
Reducible interest means that one only pays interest on the balance of money owing at the end of the month. Flat rate means that interest is calculated on the original load. Reducible interest rate is approx. equal to twice the flat interest rate.
Is 6.25 high interest rate on a 125000 loan?
Depends on what loan it is and what is the interest type (Fixed or diminishing balance) If diminishing balance it is very cheap if it is fixed then it is a bit on the higher side.
What type of annuity pays you a flat interest rate?
A tax deferred fixed annuity pays a flat interest rate.
How do you convert annual interest rate to monthly?
Let i = annual rate of interest. Then i' = ((1+i )^(1/12))-1 Where i' = monthly rate of interest
What is the current yearly interest rate for a monthly for the rate of 0.6?
If the monthly interest rate is 0.6%, you can multiply that by 12 to get an approximation of the yearly rate. For an exact calculation (involving compound interest), you basically convert the interest rate (0.6% a month) to a factor - that is, your total money increases by a factor of 1.006 (i.e., 1 + 6%) a month. You can raise this to the power 12 to convert it to yearly, then subtract one to convert it back to an interest rate. For small interest rates, as in this case, the result should be fairly close to the above quick estimate.
Home loan interest rates?
home loan Interest Rate is ------ 10.25% Floating Rate of SBI 11.00% Flat Rate of HDFC 10.50% Floating Rate of HDFC
How do you convert a variable interest rate to fixed?
If you want a variable interest rate to fixed, refinancing your home would be the way you can accomplish this. Variable rate also known as an adjustable rate mortgage should be refinanced before your interest rate adjust.
If marginal utility is positive but diminishing then?
Total utility increases at a diminishing rate
How do i get a loan?
Nice, do you charge flat 2% interest rate for all loan types?
What is differnce between interest rate stated as per annum and just interest rate as a percentage?
An interest rate as a percentage is the one flat rate you must pay. Interest rate per annum is a compound interest, determined every year that the loan (or whatever) has not been paid back. Say, if you owed me $100 with a 1% per annum interest rate. You have to pay me back $101. If you have not repaid the loan, the next year you would have to pay me an extra 1% of $101, and so on.
