地道美语听力播客:Understanding Interest Rates
Kerry: I need to take out a small business loan and I’m trying to figure out what the interest rate would be. Do you understand this stuff?
Oscar: If it’s the same as a mortgage loan, then I think I understand it in general terms . The interest rate would be the percentage of the amount you plan to borrow . It’s usuallycalculated as an annual rate . So, for instance, a 10 percent interest rate on $100 would be $10 a year.
Kerry: Okay, I see, but how is my monthly payment calculated?
Oscar: As the borrower, your monthly payment depends on the term of your loan. Each month, you’ll pay money toward the principal , plus the interest you owe the lender . The bank may also assess other fees for processing your loan, so make sure to read the fine print .
Kerry: Thanks. I understand it a little better now.
Oscar: Are you sure you want to go down that road ? You don’t want to default on yourloan and ruin your credit score . Maybe there are other options.
Kerry: Maybe there are, but I just don’t see any right now. I have an appointment with anaccountant next week and hopefully she can advise me on the best course of action .
Oscar: Good luck and let me know if I can help.
Kerry: Thanks, I will.
Oscar: If it’s the same as a mortgage loan, then I think I understand it in general terms . The interest rate would be the percentage of the amount you plan to borrow . It’s usuallycalculated as an annual rate . So, for instance, a 10 percent interest rate on $100 would be $10 a year.
Kerry: Okay, I see, but how is my monthly payment calculated?
Oscar: As the borrower, your monthly payment depends on the term of your loan. Each month, you’ll pay money toward the principal , plus the interest you owe the lender . The bank may also assess other fees for processing your loan, so make sure to read the fine print .
Kerry: Thanks. I understand it a little better now.
Oscar: Are you sure you want to go down that road ? You don’t want to default on yourloan and ruin your credit score . Maybe there are other options.
Kerry: Maybe there are, but I just don’t see any right now. I have an appointment with anaccountant next week and hopefully she can advise me on the best course of action .
Oscar: Good luck and let me know if I can help.
Kerry: Thanks, I will.
