Ars Regendi Simulation Forum

Full Version: so.. I have incorrect interest rate payments
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Interest atm is 1.36%,
why am i playing 26bil for 479 bil of debt. Thats a interest rate of 5.4%....

Maelstrom Wrote:
Interest atm is 1.36%,
why am i playing 26bil for 479 bil of debt. Thats a interest rate of 5.4%....

Interest payments represent payments on debt accrued in the past (at respective interest rate) + present circumstances. Government debt = nongovernment sector savings.

Maelstrom Wrote:
Interest atm is 1.36%,
why am i playing 26bil for 479 bil of debt. Thats a interest rate of 5.4%....

It is not incorrect. This is a quarter vs year based thing:
1.36% * 4 = 5.44%

So the value is correct, but the interest is paid each quarter, not year.

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