Float rate_of_pay a declaration for a variable rate_of_pay that can hold values like 11.50 or 12.75.
What is float rate_of_pay?
In contrast to fixed (or unchangeable) interest rates, floating interest rates change on a regular basis. Companies that offer credit cards and mortgages frequently use floating rates.
Floating rates follow the market, a benchmark interest rate, an index, or both.
Is a fixed or floating rate preferable?
In a rising rate environment, banks offer fixed rate loans at a higher rate than variable rate loans in order to profit more from the latter when rates rise.
Fixed rate loans may have interest rates that are 300–350 basis points higher than floating rate loans.
