Username: PrettyWoman Rating: Asked to: Jun Wang Date Created: 19 Oct 2016 |
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Category | 28 |
Tag | Financial |
Question | What is a 'Variable Interest Rate'? |
Hello PrettyWoman, A variable interest rate is an interest rate on a loan or security that fluctuates over time, because it is based on an underlying benchmark interest rate or index that changes periodically. The obvious advantage of a variable interest rate is that if the underlying interest rate or index declines, the borrower's interest payments also fall. Conversely, if the underlying index rises, interest payments increase. |
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