This unit presents the specifics of interest-rate determination and the importance of interest rate for various financial products, along with various applications for personal and household financial planning.

What you will learn

By the end of this unit, you will be able to:

  1. Understand interest rates and the difference between APR and EAR.
  2. Assess how banks apply interest rates across different financial products and evaluate how the setting of the interest rate affects the financial situation and the financial planning of an individual or a household.
  3. Appreciate and elaborate on the cost of money, the cost of credit for a borrower and the return on money upon saving or investment.
  4. Distinguish between the different types of interest rates and practically assess their applications.
  5. Critically evaluate financial situations involving interest rate calculations and conduct these calculations analytically.
  6. Identify the different types of interest-rate arrangements related to different mortgages types.

Course Info

Length: One 1 hour video

Institution: University of Glasgow

Level: low

Effort: 5 hours

Schedule: Self-paced