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Does the float time really affect the effective interest/effective interest rate?

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Question ajoutée par Alfred Jr. Santamaria , State Auditor , Commission on Audit
Date de publication: 2016/09/12
Rashid Pervez
par Rashid Pervez , Financial Consultant , Dewan Motors Pvt Limited

What here means as float time. if it is time value money measurement. Or if it is the periods of effectiveness of interest/ effective interest rate. Obviously every day rate changes, the parameter you set from your foreign currency reserves. As the currency rates changes the effectiveness of interest rate may also change. The price factor which you manage in the economy does also change the effective interest rates. The cost of borrowing/leverages also change effective interest rate. The best measurement of the float time is daily indices of forex rates which does affect the effective interest rate. Maturity of period for fund blocking is charged with periodical effective interest rate. Taxes is also an affect on effective interest rates.

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