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No, nominal interest can never be a negative rate. If such an event occurred it would involve customers paying the banking, at which point it would be referred to as a fee rather than interest. Full Answer

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It is, essentially, a tax. Full Answer

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Well, it is currently completely dysfunctional; if one is an insider, the interest rate is zero, or even negative. For an outsider, the sky is the limit. Full Answer

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If you invested 7580 and after 5 years you have 3126.75 then the annual interest rate is negative. It is -16.23%. Full Answer

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realestate price is positive related to stock price. If stock price increase, then interest rate decreases. it's negative realtionship Full Answer

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Economics

The IS curve is a negative slope, indicating that higher levels of output are associated with lower interest rates. The negative slope follows from the assumption that investment is inversely related to the interest rate. As the interest rate decreases… Full Answer

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When a loan is modified, usually fees and interest are added to its balance, effectively increasing it That can produce negative prepayment rate Full Answer

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A negative interest rate is when the central bank charges banks a small percentage for depositing their money there. The hope is that this will encourage the banks to lend their money rather than keeping it and being charged. Full Answer

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A nominal interest rate is an interest rate that does not factor in the rate on inflation. Nominal interest rate could also refer to an interest rate that does not adjust for the full effect of compounding. Full Answer

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A real interest rate and a nominal interest rate are quite similar. The only real difference between the two interest rates are that a nominal interest rate include the cost of inflation where as the real interest rate does not. Full Answer

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Annual Interest Rate divided by 12= Monthly Interest Rate Full Answer

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An effective annual interest rate considers compounding. When the principle is compounded multiple times each year the interest rate increased to be more than the stated interest rate. The increased interest rate is the effective annual interest rate. Full Answer

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The answer for rate in simple interest is =rate= simple interest\principle*time Full Answer

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Compounding rate is the interest rate at which the rate grow faster than the simple interest on deposit or loan made. It is also said "interest on interest". Full Answer

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A representative interest rate is an interest rate that is exemplary or acrhetypical rate. Full Answer

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Risk-free interest is the rate of interest which exists when the expected risk of the economic transaction is zero. In most cases, the general interest rates in major banks of a country reflects the nominal interest rate, which is risk… Full Answer

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No because that would mean the lender was paying someone to borrow from them and they couldn't stay in business like that. Full Answer

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Nominal Interest A nominal interest rate is the interest rate that does not compensate for inflation. This is used in relation to "effective interest rate" or "real interest rate." " Real Interest Rate = Nominal Interest Rate - Inflation Rate… Full Answer

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the real interest rate equals nominal interest rate minus inflation rate. In the situation the inflation rate increase and the nominal interest rate remains unchanged, therefore the real interest rate must decrease. Full Answer

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Yes, the interest rate and rate of return are exactly the same. Full Answer

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Corresponding compounding is the interest rate on loan or the financial product restated from nominal interest rate as an interest rate with an annual compound interest. Full Answer

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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. Full Answer

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If you carry a balance, then it's better to have a low interest rate. If you do not carry a balance, then the interest rate doesn't matter at all. Full Answer

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A fixed rate has the same rate of interest the entire life of the loan. A fluctuating rate varies with the prime interest rate. Full Answer

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In
Mortgages

A fixed rate mortgage is a loan with an interest rate that does not change over time. Whatever the interest rate is when the loan is taken out, will be the interest rate for the entire duration of the loan. Full Answer

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The expected real interest rate. Full Answer

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an interest rate changes with time Full Answer