The LIBOR is the London Inter-Bank Offered Rate (what British banks use when they lend to each other) and the Prime Rate is what major banks charge their most credit-worthy customers. Thus the Prime Rate is usually around 2.5 to 3.5% higher then the LIBOR. Currently the LIBOR is at 0.53% and the Prime Rate is 3.25%.

Looking at our past decade or so, the Prime and LIBOR have never exceeded 10% so chances of extremely high interest rates (approaching the 18% ceiling) are quite slim. Lees verder →

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