What is Fixed Rate?

A fixed rate is the interest rate on a loan that is set by the lender. The interest rate set by a specific number does not change in response to the financial institution's costs. For example, if 7% interest is paid for four years, the debtor will be charged a 7% interest rate until maturity.

How to calculate Interest Rate

The Flat Rate calculation method and the Effective Rate calculation method are the two types of fixed capital calculation methods.

Flat Rate calculation

Effective Rate calculation

If you're not sure how to calculate this formula, Thaiinterest has a simple and quick online home loan interest calculator. Simply enter the desired number and press the calculate button. The total amount is then calculated by this web tool.

Read more for the Article relate to Floating Rate

Source : MoneyGuru