Explain about interest rate, Macroeconomics

Assignment Help:

Q. Explain about Interest rate?

When you borrow money, you normally have to pay a fee for the loan. This fee is frequently known as interest, especially if the fee is proportional to amount you borrow. Interest rate is commonly represented as a percentage of the size of the loan per unit of time, characteristically per year. If interest rate is 10% per year, you should, for instance, pay 1,000 per year if you borrow 10,000. 

Interest rate may be floating orfixed. If it is fixed, you would pay the same percentage for the complete duration of the loan. With a floating interest rate, interest rate will change regularly depending on market conditions.

Interest rate for a specific loan relies on the general level of interest rates as well as the specifics of the loan. Factors like risk (probability that loan won't be repaid), duration of the loan and whether you select a fixed or a floating rate will influence the interest rate.


Related Discussions:- Explain about interest rate

Inflation, if govtment face cost push inflation which policy govtment shoul...

if govtment face cost push inflation which policy govtment should take to control inflatoin?

Define do you mean by gdp growth, Q. Define do you mean by GDP growth? ...

Q. Define do you mean by GDP growth? By (nominal) GDP-growth we mean the percentage change in (nominal) GDP over a specific period of time. Real GDP growth is defined as percen

Gdp price index, Determine the GDP price index for 1984, using 2005 as the ...

Determine the GDP price index for 1984, using 2005 as the base year

Fiscal Policy, When is a balanced budget presented?

When is a balanced budget presented?

Real gdp growth rate of an economy, a.  State concisely, in your own words,...

a.  State concisely, in your own words, the essence i.of what GDP measures and ii.what GDP doesnot measure.  b.  Stocks and bonds issued by firms comprise the "Investment" co

Increase in the popularity, If there is an increase in the popularity of vi...

If there is an increase in the popularity of video games and more companies making video games, then the following is true? A) Sales of the games will be uncertain. B) Price will g

Velocity of money is constant, Suppose that this year's the money supply is...

Suppose that this year's the money supply is $500 billion, nominal GDP is $10 trillion, and real GDP is $5trillion. a. What is the price level? b. What is the velocity of money

Combination, take one set ( lk& output) to prove

take one set ( lk& output) to prove

Classical quantity theories, Classical Quantity Theories Quantity theor...

Classical Quantity Theories Quantity theories have had a long history and a widespread use in economics. As originally formulated these were not explicitly designed as theories

Determine the daily amount and ipa, A brewery produces two kinds of beer, s...

A brewery produces two kinds of beer, stout and IPA . Each batch of stout sells for $60 per unit while each batch of IPA sells for $108. Both products require malt, hops, barley, f

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd