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Loan Constant |
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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 elasticity of substitution functionConstant elasticity of substitution functionSee CES function Constant growth modelConstant growth modelAlso called the Gordon-Shapiro model, an application of the dividend discount model that assumes (1) a fixed growth rate for future dividends, and (2) a single discount rate. Constant yield methodConstant yield methodAllocation of annual interest on a zero-coupon security for income tax use. Constant 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 returns to scaleConstant returns to scaleA property of a production function such that scaling all inputs by any positive constant also scales output by the same constant. Such a function is also called homogeneous of degree one or linearly homogeneous. CRTS is a critical assumption of the H-O Model of international trade. Contrasts with increasing returns and decreasing returns. Further Suggestionsconstant dollar planConstant dollar plan Constant dollars Constant prices Constant dollars |
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