03.06.2015, 00:16
03.06.2015, 06:58
Maelstrom Wrote:
Interest atm is 1.36%,
why am i playing 26bil for 479 bil of debt. Thats a interest rate of 5.4%....
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.
05.06.2015, 16:30
Maelstrom Wrote:
Interest atm is 1.36%,
why am i playing 26bil for 479 bil of debt. Thats a interest rate of 5.4%....
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.