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Is it better to have higher interest rate when a company borrows money or to have a lower interest rate?
It depends from your point of view. if you are the company borrowing, it is better to have a low interest rate, because it means you are paying less money when you have to pay back your annual debt. If you say had an interest rate of 6%, you would be paying 6% of the actual amount every time you pay the debt.
Example: You have borrowed $10,000
say if you are paying it off monthly and your interest rate is 5% you would be paying $500 extra.
What else can I help you with?
Is a higher or lower times interest earned ratio better for a company's financial health?
A higher times interest earned ratio is better for a company's financial health. It indicates that the company is more capable of meeting its interest obligations with its earnings.
What is better a higher or a lower percentage?
If you are receiving interest on an assett, a higher interest is better. If you are paying interest on a debit, a lower interest is better.
Is it better to have a higher or lower interest rate when considering financial investments?
In general, it is better to have a higher interest rate when considering financial investments. A higher interest rate means that you can earn more money on your investments over time. This can help your investments grow faster and provide you with greater returns.
Is a higher or lower interest rate better for obtaining a loan?
A lower interest rate is better for obtaining a loan because it means you will pay less in interest over the life of the loan.
Will you pay a higher interest rate on a poor credit loan?
Interest rates are directly tied to your credit history. The company making the loan needs to make money, so your poor credit record will cause them to charge you higher interest.
Is a higher or lower times interest earned ratio better for a company's financial health?
A higher times interest earned ratio is better for a company's financial health. It indicates that the company is more capable of meeting its interest obligations with its earnings.
What is better a higher or a lower percentage?
If you are receiving interest on an assett, a higher interest is better. If you are paying interest on a debit, a lower interest is better.
How Interest Rates can Affect a company?
interest rates reflect the funding cost. for the the company the higher the rates the higher the borrowing cost.
What is times burden covered ratio?
The times interest earned ratio is a financial metric that indicates a company's ability to meet its interest obligations with its operating income. It is calculated by dividing earnings before interest and taxes (EBIT) by interest expense. A higher ratio indicates a company is better able to cover its interest payments.
Is it better to have a higher or lower interest rate when considering financial investments?
In general, it is better to have a higher interest rate when considering financial investments. A higher interest rate means that you can earn more money on your investments over time. This can help your investments grow faster and provide you with greater returns.
Is a higher or lower interest rate better for obtaining a loan?
A lower interest rate is better for obtaining a loan because it means you will pay less in interest over the life of the loan.
Why should you get the lowest interest rate?
That is simply not true. It might be better to get a higher interest rate which is fixed for the term of the loan if you expect interest rates to rise.
Will you pay a higher interest rate on a poor credit loan?
Interest rates are directly tied to your credit history. The company making the loan needs to make money, so your poor credit record will cause them to charge you higher interest.
Interest cover ratio?
The interest coverage ratio is a financial metric used to assess a company's ability to pay interest on its outstanding debt. It is calculated by dividing the company's earnings before interest and taxes (EBIT) by its interest expenses. A higher ratio indicates better financial health and a greater ability to meet interest obligations, while a lower ratio may signal potential financial distress. Generally, a ratio above 1.5 to 2 is considered acceptable, but this can vary by industry.
Which would be better to do, pay of a closed credit card that is at a good rate or pay off the open credit card that has a much higher interest rate Both cards have a large balance.?
It is better to pay off the open card that has the higher interest rate.
Borrowing short and lending long?
"Borrowing short and lending long" refers to a risky strategy where a financial institution borrows money on a short-term basis (at a lower interest rate) and then lends it out over a longer period (at a higher interest rate). This strategy can lead to liquidity mismatches and financial instability if interest rates change or if borrowers default on their loans.
I have poor credit, is it still possible to get personal loans without paying a ton of interest?
Loans, in general, are based on risk. The higher the risk, the higher the interest rate. You'll be able to get a loan, but the rate will be higher than if you had better credit.
