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The comparison rate is calculated by taking the total cost of a loan, which includes the interest rate, fees, and charges, and expressing it as an annual percentage rate. To compute it, you typically use a standardized formula that factors in the loan amount, term, and any additional costs over the life of the loan, allowing consumers to compare different loan products effectively. This calculation helps to provide a more accurate representation of the true cost of borrowing than the interest rate alone.
What else can I help you with?
What is rate base and percentage?
a rate is a comparison of something. A percentage is always a comparison to 100.
What does comparison rate mean. Im looking at a car loan and it shows a rate of 8.99pa then a comparison rate of 10pa. what one is it?
When you see a comparison rate, usual the comparison rate they show you includes all fees and extras. So the comparison rate of 10 pa, is the actual amount you pay for the loan. The 8.99 pa is the "interest rate" ONLY, not including fees and extras. They call it "Comparison Rate" , because its the best way to "Compare" it to other loans from other lenders. (Hence the name)
A comparison 1 of something is a kind of what rate?
It is a unit rate.
What is the formula to calculate the rate of osmosis?
how do you calculate the rate of osmosis
At what rate is the income statement converted for US comparison?
Average rate.
How you calculate the Safety Activity Rate?
how to calculate activity rate for machining
A comparison to 1 of something is a rate?
Ratio
What is a comparison rate and why is it handy for consumers?
A comparison rate in Australia must be quoted by lenders who offer home loans and personal loans. The comparison rate is handy for consumers because it allows consumers to see the total "real" interest rate as it must include fees and other charges that would not normally be included within an interest rate.
How do you calculate percentage comparison for 5.5 to 5.6?
.98%
What does rate compare two quantities by division or multiplication?
Rate is a comparison based on division.
A comparison to 1 of something is what type of rate?
Ratio
Comparison between Absolute Growth rate with Relative Growth Rate?
Measurement and the comparison of total growth per unit time is called absolute growth rate whereas the identification of speed of plant growth is called absolute growth rate.
