0
What else can I help you with?
Is fixed interest rate better than variable interest rate for banks?
Yes, because a variable interest rate can go up as high as 9% APR when you can get a fixed APR of 3.5%. Also with variable interest your payments will always jump around and with fixed your payments are what you sign.
What is a series of fixed payments?
A series of fixed payments refers to recurring amounts that are consistent and unchanging over a specified period of time. These payments can be made as part of a contract, loan agreement, or investment arrangement.
What is the loan constant formula in Excel and how can it be used to calculate loan payments?
The loan constant formula in Excel is PMT(rate, nper, pv). This formula can be used to calculate loan payments by inputting the interest rate (rate), the number of payment periods (nper), and the loan amount (pv). Excel will then calculate the fixed payment amount needed to pay off the loan over the specified period.
What are the differences between fixed and variable interest rates on loans?
Fixed interest rates on loans remain the same throughout the loan term, providing predictability in monthly payments. Variable interest rates can change based on market conditions, leading to fluctuating payments.
What are fixed home loans?
You are probably referring to fixed rate home loans. This means the interest rate is preset at a fixed interest rate and your monthly payments will not change over the course of the loan.
If a firm has both interest expense and lease payments would times interest earned be smaller than fixed charge coverage?
times interest earned be smaller than fixed charge coverage
What do you think is a benefit of having a fixed interest loan?
A benefit of having a fixed interest loan is that the interest rate remains the same throughout the loan term, providing predictability and stability in monthly payments.
Is interest payments variable or fixed cost?
Interest payments are typically considered fixed costs because they do not fluctuate with the level of production or sales. Once a loan agreement is established, the interest rate and payment schedule are usually predetermined, leading to consistent, predictable payments over time. However, if interest rates are variable (as in the case of some adjustable-rate loans), the total interest expense can change, but the cost itself is still categorized as fixed in relation to the business's operational costs.
What is the name of the interest payments that bond holder receives for purchasing a bond?
The interest payments that bond holders receive for purchasing a bond are called coupon payments. These payments are typically made semi-annually at a fixed rate specified at the time the bond is issued.
What are the benefits of a fixed interest rate mortgage as opposed to any other kind?
A fixed interest rate for a mortgage loan is ideal for those who are more comfortable not taking a risk. Your payments will stay the same, unlike a variable interest rate. With a variable interest rate your payments could be very low one month and then increase greatly the next month.
How do you make journal entries on provision on interest on fixed deposit?
To make a journal entry for provision on interest on fixed deposit, you would debit the Provision for Interest on Fixed Deposit account to recognize the expense and credit the Interest Income account to reduce the income earned on the fixed deposit. This adjustment ensures that the financial statements reflect the estimated liability for future interest payments accurately.
How does inflation impact the relationship between bond prices and inflation?
Inflation can cause bond prices to decrease because the fixed interest payments on bonds become less valuable in real terms. This means that when inflation rises, the purchasing power of the fixed interest payments decreases, leading to a decrease in bond prices.
