Down Scaling Interest in Interest Rate


During periods of high interest rates, businesses utilize their own capital, merge with other businesses, or diversify, and borrow when it is absolutely necessary. People also avoid hardship through refinancing during economic slowdowns because interest rates are low enough to recover some of their income and lower debt interest. High interest rates are more inviting to investments although hard to sustain in the long run. The future looks grim and interest rates have been down for a while, and will probably stay down for some time to come. This paper investigates ways to lower the earnings percentage in interest rates. A new set of the uniform series of the future worth of money involving linear gradients will be mathematically reformulated to investigate the possibility of lowering the interest rate for long term loans and mortgages. A new equation will be formulated and put into a tabulated practical example.

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Ashry, M. (2015) Down Scaling Interest in Interest Rate. Theoretical Economics Letters, 5, 82-91. doi: 10.4236/tel.2015.51012.

Conflicts of Interest

The authors declare no conflicts of interest.


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