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How do you convert flat rate of interest to reducing rate interest?
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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%
How do you convert diminishing rate of interest to flat rate of interest?
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.
How we can convert diminishing rate to flat rate?
diminishing rate / 1.85 = flat rate
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.
What type of annuity pays you a flat interest rate?
A tax deferred fixed annuity pays a flat interest rate.
Are personal loans offered on reducing balance interest?
Yes most banks charge interest based on reducing balance. Repayment plans are flexible and usually it starts from 12, 24 an 36 months. Many banks give attractive interest rate of both flat and reducing balance per month it makes life simple.
What is the difference between flat rate and reducing rate in banking?
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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
What is interest rate reduction?
Simply reducing the amount of interest on the principle. Reduction of interest will greatly reduce the overall cost of the loan.
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 does the federal reserve reducing the interest rate affect the bond market?
The cost of borrowing money.^%
