0
The new interest rate due to the impact of the total fees is 13.233 % which translates into an effective interest rate of 13.6708 % due to semi-annual compounding.
Wiki User
∙ 14y 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.
The interest rate charged to banks borrowing from the Federal Reserve is known as the?
Repo rate
Is high interest rate good or bad?
That depends on whether or not you're lending or borrowing. Lending = good Borrowing = bad
What are interest rate?
Extra money you pay back for the priveledge of borrowing it.
How might a reduction in interest rate on credit card borrowing affect people choice whether to spend or to save?
An interest-rate reduction is usually an incentive to spend more - as the card-holder will pay less for their borrowing.
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.
The interest rate charged to banks borrowing from the Federal Reserve is known as the?
Repo rate
Is high interest rate good or bad?
That depends on whether or not you're lending or borrowing. Lending = good Borrowing = bad
The federal reserve can change the interest rate to help the economy. What is the interest rate?
the cost of borrowing money
The Federal Reserve can change the interest rate to help the economy What is the interest rate?
the cost of borrowing money
What are interest rate?
Extra money you pay back for the priveledge of borrowing it.
What is Is the percentage of interest you must pay for borrowing money.?
The Intest rate
What is the money rate?
There is no single "money rate". There are rates of exchange between the currencies of most countries. These are dynamic rates and change continuously. You can find reasonably up-to-date rates from various currency exchange rate websites.Then there are interest rates for borrowing and lending. Interest rates for borrowing will depend on what you are borrowing for, how long you are borrowing for and your credit-worthiness. The rate of interest that you might get for saving depends on the amount and the period.All these rates depend on the state of the economy and the expected development in the economy over the period in question.
What kind of borrowing rates might a business get compared with an individual?
Borrowing rates a business might get compared with an individual are usually higher. The rate differs long with the risk one is willing to take. To put it more clearly : if you put in more financial risk, you will get in return a higher borrowing rate.
What is the percentage of interest you must pay for borrowing money is called?
The Intest rate
What is the appropriate discount rate for valuing the lease?
the after-tax cost of secured borrowing.
What does interest rate represents in terms of the demand for money?
the price of borrowing money
