|
|
Loan Constant |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Loan ConstantThe yearly percentage of interest which remains the same over the life of an amortized loan, based on the monthly payment in relation to the principal originally loaned. For example: A $1000 loan at 9% interest for 20 years can be amortized at $9.00 per month. The constant interest rate is figured by finding one year's payments ($9.00 x 12 months = $108,00), and expressing this amount as a percentage of the principal originally borrowed (10.8% of $1000).Loan Constant Similar MatchesConstant ratio planConstant ratio planMaintaining a predetermined ratio between stock and fixed income investments through regular adjustments of distribution of funds into different investments. See: formula investing. Constant yield methodConstant yield methodAllocation of annual interest on a zero-coupon security for income tax use. Constant dollarsConstant dollarsDollars of a base year used as a general measure of purchasing power. Constant dollar planConstant dollar planMethod of purchasing securities by investing a fixed amount of money at set intervals. The investor buys more shares when the price is low and fewer shares when the price is high, thus reducing the overall cost. Constant pricesConstant pricesSee constant dollars. Further SuggestionsConstant growth modelconstant dollar plan Constant returns to scale Constant dollars Constant elasticity of substitution function |
|
|
|