# Could some one explain these terms. need to rewrite them for assignment?

Answers:0 | LastUpdateAt:2012-09-16 01:58:05

**Q**uestion- rusty trambone
- Asked at 2012-09-16 01:58:05

In the case of a fixed rate loan , in the event of early repayment of the loan in full or in part , for any reason , or converting to a variable rate or fixed within the initial fixed rate period or any additional or subsequent fixed rate period , the Borrower shall pay an amount which is calculated according to the following formula (quantity x ( R -R1 ) x Time ) divided by 36,500 and for the purposes of this formula , the variables are defined as follows : 'Amount ', the average balance of the amount repaid early or converted from the date of redemption or conversion at the end of the fixed rate term , allowing scheduled repayments in the case of a loan provision , this is equal to the total amount of the early redemption or conversion . ' R' means the cost of funds for the Bank's fixed rate period incorporated in the current interest rate on the loan . ' R1 ' means the interest rate available to the Bank 's funds placed in the money market on the date of prepayment or conversion for the remainder of the fixed fee . " Time" , the number of days from the date of prepayment or conversion at the end of the relevant fixed rate period .

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