Finance Metric - Q&A: Interest Rate

Question: #1: Interest rate?
If there's an interest rate given e.g. 8% annual rate but we have to find monthly payments for 4 yrs., how is the rate changed from annual to monthly?E.G. for finding annuity, I'll put in 48 months but what is the 8% yearly interest rate going to be?Thankssome more info:lets say somene borrows 30000 loan and has to pay for a car which will have an interest of 8% annual rate and what is the monthly payment on a 4 year loan? - asked by S

Answer: ... - answered by: financegal27
View All Answers (1)

Question: #2: Interest Rate?
What is the interest rate for offshore savings accounts. I want to know about the Cayman Islands, Switzerland Banks,etc. And how often is the interest allocated, like in the states, most savings accounts are 9% a year.And do offshore banks take out taxes. - asked by ????

Answer: ... - answered by: swissnick
View All Answers (3)

Question: #4: What average interest rate should I expect to payon a 20-year loan, if the variable rate is 4%right now?
I can get variable rate loan with a 20-year term. The current interest rate is 4%, which is based on the prime rate. I know there's no precise answer to this question, but what might I expect the overall interest rate to turn out to be? Just a ballpark answer is fine!Thanks! - asked by Mike

Answer: ... - answered by: Alan S
View All Answers (1)

Question: #5: What rate of interest compounded quarterly willyield an effective interest rate of 5%?
Please help. I am hanging on the last string here. I feel like this should be easy but I do not understand. Grrrrr!What rate of interest compounded quarterly will yield an effective interest rate of 5%? - asked by anna

Answer: ... - answered by: T.Vance
View All Answers (3)

Question: #6: What is the interest rate for high credit scoresand the differences in rates?
If one is prime rate. Credit score above 780. Are the final interest rates they quote you lower than what is advertise on their website? I am considering using a mortgage broker however their rates seem higher than the bank + the cost seems higher. If the rate is what they advertise, I might just go to the bank directly first and save my time. The mortgage broker seems to be on top of things and most likely have better info on closing etc. which is their only selling point but if the interest rate is higher than the competitor I am reluctant to go with it since they will hit my credit score if I apply. Simply put money is money a little .25% can equal 60K over the life of the loan. Something that could sit in investment generating returns for me. In general what is the difference in the interest rate for prime/ A credit scores? Are the advertised rates using prime rates or just average rates?Thanks in advance - asked by echo1181

Answer: ... - answered by: Anthony P
View All Answers (2)

Question: #7: Question about the real interest rate and theexpected rate of return?
Hello, I just read in my macroeconomics book that you should invest if the real interest rate is lower than the expected rate of return. I don't understand why we don't have to compare the nominal interest rate and the expected rate of return. Because that is how much we have to pay our lender back. For example if:Real Interest Rate=6%Nominal Interest Rate=10%Expected Rate Of Return=8%We should undertake the investment here but aren't we losing money ?Thank You. - asked by ParaNoir

Answer: ... - answered by: Robert M
View All Answers (1)

Question: #8: What determines my variable interest rate on mystudent loans?
I currently have a private, unsubsidized student loan for 16,000 which has a variable interest rate. The rate is currently 8.5%, which I think is very high. I looked up the definition of variable interest rates and all it says is that the rate changes when index rates change. Considering the fact that interest rates are as low as they'll get and are only going up...does this mean I can expect my interest rate to climb even HIGHER? If so, how high? Thanks. Answer: ... - answered by: eyecue_two
View All Answers (3)

Question: #9: Why are home interest rates rising when the fedkeeps lowering the interest rate?
I am a bit confused at why the interest rate on 15 and 30 year mortgages is rising and the Fed is lowering the interest rate. Shouldn't the mortgage companies be passing the savings on to the consumers? Isn't that the whole point behind the Fed trying to help our economy? Just wondering. If anyone knows the answer please let me know. Thanks. - asked by weezy

Answer: ... - answered by: dday2086
View All Answers (6)

Question: #10: How will the interest rate and planned investmentspending change as the following events occur?
How will the interest rate and planned investment spending change as the following events occur?a. An increase in the quantity of money by the Federal Reserve increases the amount of money that people wish to lend at any interest rate.c. Baby boomers begin to retire in large numbers and reduce their savings.I am a little bit lost. I'm learning about the interest rates, spending, and the multiplier in my Macroeconomics class right now. - asked by islndnative

Answer: ... - answered by: Nathan
View All Answers (1)

Question: #12: How does the federal interest rate would affectthe interest rate of a 30yrs fixed mortgage?
im planning to buy a house and it would take 6 months to finish building it , i heard that the Fed might increase interest rate to combat inflation, would this mean that the interest rate on the time i would closed the house would also increase? - asked by Hanhan C

Answer: ... - answered by: ammouri
View All Answers (5)

Question: #13: What is the lowest interest rate that gives you adoubling time less than 9 years?
Use a spreadsheet to find the number of years it will take for an investment to double at 3% annual interest. Find the product of the interest rate and the doubling time. Find a formula for doubling time as a function of interest rate. Use the compound interest formula. Answer: ...

Question: #14: What is the difference between contractualinterest rate and market interest rate?
Please explain it as simple as you can. Thanks!What I understand so far is market interest rate is the rate investors demand for loaning funds to the company. I don't really get what a contractual interest rate is. - asked by nwofu

Answer: ...

Question: #15: What is the appropriate stated annual interestrate for the following?
If The effective monthly interest rate is 5%, then match each of the following compounding frequencies with its appropriate stated annual interest rate: Annual compounding Quarterly compounding Monthly compounding Daily compounding58.9% 68.0% 58.6% 60.0% 64.7% 63.1% 79.6%Wouldn't they all be 60.0% if we are looking for the STATED annual interest rate? In other words, for the stated rate, it shouldn't matter what the compounding frequency is. - asked by WrestlingFan19

Answer: ... - answered by: Math Wizard Level 23
View All Answers (1)

Question: #16: What good interest rate should someone open asavings account and when should they open anaccount?
Wanting to open a savings account, what interest rate is a good rate. Is there a specific time in the year one should open an account, spring time or summer or right before new years?? - asked by umair23

Answer: ... - answered by: mister ed
View All Answers (6)

Question: #17: How much interest rate would I get on my mortgageloan and how much would I pay monthly given mysituation?
I am a 24yo med student in Chicago looking to buy a condominium. As a student, I have no steady income but do have around $30,000 available for a 10% downpayment. My credit score is 760. Can I get a mortgage with a reasonable interest rate given my credit score and lack of steady income and what would that rate be? I plan on purchasing a condo and renting it out for 2-3 years and using the rent to supplement monthly mortgage until I have a consistent income high enough for me to move-in myself. What steps must I take to fulfill my plan of first time home ownership? - asked by doesnotexist1

Answer: ... - answered by: Dan
View All Answers (4)

Question: #18: How to hedge interest rate risk on loan liability?
I have floating rate SBA commercial borrowing with 30 year term. Right now, the interest rates are low and My cash flow from the operation covers interest very well. But if Interest rates go up, the equation can change dramatically. How can I hedge this risk? SBA does not allow fixed rates. - asked by jagdip d

Answer: ...

Question: #20: What is the lowest interest rate credit card thatI can apply for?
I currently have a 17.99% APR credit card. I've had it for almost a year now. 11 months to be exact. I want to go to a lower interest rate card. Does anyone know a good low interest rate card? - asked by Carbonbased Lifeform

Answer: ... - answered by: answermonkey
View All Answers (6)

Question: #22: What is a good interest rate for financing a car?
My credit is 603, I'm planning to buy a car in 4 months.What can my interest rate be?What is a good interest rate?Thanks - asked by ticosport9

Answer: ... - answered by: Tanita
View All Answers (3)

Question: #23: How can I lower the interest rate on my studentloans?
I owe about 35,000 in stafford student loans (17,500 subsidized and 17,500 unsubsidized and want to lower the interest rate. Right now it is at 6%. I'm still in school but at the current rate I am being charged about 3.00 a day interest on the loans that the the government isnt paying the interest on. I've heard of consolidating but I don't really know how it works or where I should go to begin or even if I can consolidate since I'm still in school. Help! - asked by The Drake

Answer: ... - answered by: musicimprovedme
View All Answers (8)

Question: #24: How can an increase in the interest rate makebonds more attractive and reduce their price?
The Demand for bondsan increase in the interest rate makes bonds more attractive, so its leads people to hold more of their wealth in bonds, as opposed to money.However, you also learned that an increase in the interest rate reduced the price of bonds.How can an increase in the interest rate make bonds more attractive and reduce their price? - asked by chocosonge

Answer: ... - answered by: Sieglinda
View All Answers (2)

Question: #25: Is this a high interest rate for good credit?
I am planning on financing equipment for my business. The pruchase price is $6200. I have excellent credit (personally as well as business). The interest rate I have been approved for is 8.3%. With interest rates dropping I thought that sounded kind of high. The term of the lease (lease to own) is 3 years. - asked by The Lady Amalthea

Answer: ... - answered by: Sally
View All Answers (4)

Question: #26: What is a good interest rate on a savings account?
I want to start up a savings account of some form, but I'm not sure how or what to look for. A high interest rate is something important, but I don't know what a high interest rate is. Is there anything else I need to look for in a savings account? - asked by drew b

Answer: ... - answered by: helpaneed
View All Answers (3)

Question: #27: Would getting a lower interest rate loan to payoff credit card be a smart idea?
I have just under $6,000 on my card, which has about a 12% interest rate. I've never made a late payment and always pay above the minimum on all credit accounts/car payments/student loans. Would looking into getting a lower interest rate loan be a good idea or a naive one? I know personal loans like this are typically harder to come by, but I would like some opinions. Thanks! - asked by Jess B

Answer: ...

Question: #28: What interest rate can compensate for losses dueto inflation?
What is an appropriate interest rate that makes sure a loan's value is equal by the time the money is paid back? Answer: ... - answered by: Anjaree
View All Answers (5)

Question: #29: How do i calculate the average interest rate ofall my 5 credit cards?
For instance if credit card A has an interest rate of 12% and the balance is $7000, cc B has a rate of 9% and the balance is $1300, cc C has a rate of 16% and the balance is $3000,...........................What is the average interest rate?A website that explains how to calculate it would be helpful also. - asked by Claudio F

Answer: ... - answered by: Angie
View All Answers (2)

Question: #30: What interest rate should I expect on a new car?
Is there any way to get an idea of what my interest rate would be on a new car? I would like to buy a new Nissan Versa within the next couple of months. The car costs around $16,000, I'm planning to put $4000 down, and I have a good credit score of 720.Thanks! - asked by SE

Answer: ... - answered by: Shaq iz Phat
View All Answers (1)