TITLE:
Down Scaling Interest in Interest Rate
AUTHORS:
Mohammed H. S. Al Ashry
KEYWORDS:
Downscaling: Reducing, Rationalizing and Economizing, Mortgage: A Property Loan, Usually Based on the Value of the Property, Future Value of Money: Value of the Loan or Mortgage with Interest, If Payments Are Timely Made in Full, Present Worth of Money: Amount of the Loan, Mortgage, Compounding: In Finance, Combining Multiples of Payments and Interests
JOURNAL NAME:
Theoretical Economics Letters,
Vol.5 No.1,
February
12,
2015
ABSTRACT: 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.