What is the typical relationship between time and interest rate?

Business

2 answers:

klasskru [66]3 years ago

5 0

I believe the answer is: Longer time period usually equals higher interest rates.

Longer time period usually equal more risk for the creditor to get all of the money that they land back. Because of this, when a borrower opt to choose longer time period, creditors would impose a higher interest rates to protect their investment.

melamori03 [73]3 years ago

3 0

<span>Time and interest rates are directly related to one another. When paying a loan that accures interest, the longer it takes for you to pay the loan back, the more interest you are going to pay on that loan. Over time, the interest adds up and can be a large sum of money, if you want to pay a lower amount of interest, it is often beneficial to pay off the loan in a quicker amount of time. </span>

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