Please answer each of the following questions in detail and provide in-text citations in support of your argument. Include examples whenever applicable. Make sure to provide examples for each of the questions below. 1. Please explain the determining factors of the interest rate and make sure to include hypothetical examples for better clarity.
Please answer each of the following questions in detail and provide in-text citations in support of your argument. Include examples whenever applicable. Make sure to provide examples for each of the questions below.
1. Please explain the determining factors of the interest rate and make sure to include hypothetical examples for better clarity.
1) Determining factors of the interest rate with hypothetical examples:
An interest rate is the payment made by the borrower of money to the lender, at a particular interest rate. It is the amount received by the lender above the principal amount. Interest is calculated as a percentage of the principal amount lent. Interest rates keep on varying because of various factors, some of them are discussed below.
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