0
What is differnce between interest rate stated as per annum and just interest rate as a percentage?
Wiki User
∙ 12y ago
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.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
A borrower is often confrented with a stated interest rate and an effective interest rate What is the difference and which one should a financial manager recognize as the true cost of borrowing?
A stated interest rate is the rate that is available when you are applying. An effective interest rate is the rate that has been applied to the loan. The true cost of borrowing is the effective interest rate.
Who determines the rate of interest paid on a bond?
Bonds have a predetermined rate of interest called the stated or contract rate, which is established by the board of directors.
What occurs when a bond's stated interest rate is greater than the market interest rate?
The bond's price will be in premium, meaning exceed 100
How are dividends for preferred stocks paid?
Each stock are stated as a percentage known as the par value.
What is the average interest rate on sears credit cards?
Credit card interest rates vary with individuals' credit scores and worthiness. Sears offers three different credit card options with a stated average interest rate of 25 percent
With a tenants in common ownership do you need to put the percentage each person will own on the deed?
You don't need to recite a percentage of ownership unless you want to create a co-ownership that is not equal. If no percentage is recited the parties automatically acquire a 50% interest. If you want a different division it must be clearly stated on the deed.You don't need to recite a percentage of ownership unless you want to create a co-ownership that is not equal. If no percentage is recited the parties automatically acquire a 50% interest. If you want a different division it must be clearly stated on the deed.You don't need to recite a percentage of ownership unless you want to create a co-ownership that is not equal. If no percentage is recited the parties automatically acquire a 50% interest. If you want a different division it must be clearly stated on the deed.You don't need to recite a percentage of ownership unless you want to create a co-ownership that is not equal. If no percentage is recited the parties automatically acquire a 50% interest. If you want a different division it must be clearly stated on the deed.
How is interest cost stated?
Businesses typically state interest cost as a percentage of the amount borrowed per unit of time. Examples are 12 percent per year and 1 percent per month.
Is the price at which bonds sell determined by the interaction of stated rates of interest and market rates of interest?
Yes, the price at which bonds sell are determined by the interaction of stated rates of interest and market rates of interest.
What is the Difference between nominal and effective interest rate?
Nominal interest rate is also defined as a stated interest rate. This interest works according to the simple interest and does not take into account the compounding periods. Effective interest rate is the one which caters the compounding periods during a payment plan. It is used to compare the annual interest between loans with different compounding periods like week, month, year etc. In general stated or nominal interest rate is less than the effective one. And the later depicts the true picture of financial payments.
What is the size of A4 paper in percentage?
It might be possible to answer the question if you stated as a percentage of what!
Can interest be added to late rent if not stated in lease?
No interest should only be charged if you are in a mortgage.
What is the Difference between stated and APY rates?
In short, stated rate does not include interest income made by (usually) monthly compounding of interest income. This means that if you multiply your initial investment by APY, you will get exactly the amount you will have after one year, provided you did not add or withdraw any funds. If you multiply your initial investment by Stated Rate you will get amount lower that what you would be able to withdraw after twelve months.
What happens when issuing bonds payable when the market interest rate is less than the stated interest rate?
premium
A borrower is often confrented with a stated interest rate and an effective interest rate What is the difference and which one should a financial manager recognize as the true cost of borrowing?
A stated interest rate is the rate that is available when you are applying. An effective interest rate is the rate that has been applied to the loan. The true cost of borrowing is the effective interest rate.
How are the relations between quantities be stated?
The relations between quantities are stated by multiplicative relationship between the quantities.
How are sales tax rates usually stated?
as a percentage of sales
What occurs when a bond's stated interest rate is greater than the market interest rate?
The bond's price will be in premium, meaning exceed 100
