04-05-2011, 02:59 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by sadi kanwal</i>
<br />salam here.........very nice forum 4 resolving and making good concepts..
now a days working on finding the differences between nominal interest rates,effective interest rates,internal rate of return and KIBOR rates. kindly help to define them and differentiate all of them with each other.........it will be more helpful if you guyz compare all of these with each other
plzz help me as soon as possible
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
-A nominal interest rate refers to the rate of interest before adjustment for inflation.
-An effective rate is the interest rate on a loan or financial product restated from the nominal interest rate as an interest rate with annual compound interest payable in arrears.
-The internal rate of return (IRR) is a rate of return used in capital budgeting to measure and compare the profitability of investments.
-KIBOR is Karachi Inter Bank Offer Rate, given by specialized institution on daily, weekly, monthly and on 1, 2 and 3 yearly basis to all the commercial banks of Pakistan so that they charge interest to their customers on that basis. This rate is inflation adjusted rate and then banks by adding 1, 2 or 3% in KIBOR rate charge their customers for their profit.
I think my reply will help you in understanding the difference between these terms.
Comments on my post are appreciated.
<br />salam here.........very nice forum 4 resolving and making good concepts..
now a days working on finding the differences between nominal interest rates,effective interest rates,internal rate of return and KIBOR rates. kindly help to define them and differentiate all of them with each other.........it will be more helpful if you guyz compare all of these with each other
plzz help me as soon as possible
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
-A nominal interest rate refers to the rate of interest before adjustment for inflation.
-An effective rate is the interest rate on a loan or financial product restated from the nominal interest rate as an interest rate with annual compound interest payable in arrears.
-The internal rate of return (IRR) is a rate of return used in capital budgeting to measure and compare the profitability of investments.
-KIBOR is Karachi Inter Bank Offer Rate, given by specialized institution on daily, weekly, monthly and on 1, 2 and 3 yearly basis to all the commercial banks of Pakistan so that they charge interest to their customers on that basis. This rate is inflation adjusted rate and then banks by adding 1, 2 or 3% in KIBOR rate charge their customers for their profit.
I think my reply will help you in understanding the difference between these terms.
Comments on my post are appreciated.
