地道美语听力练习:Understanding Interest Rates

Kerry: I need to take out a small business loan and I’m trying to figure out what the interest rate would be. Do you understand this stuff?

Oscar: If it’s the same as a mortgage loan, then I think I understand it in general terms. The interest rate would be the percentage of the amount you plan to borrow. It’s usually calculated as an annual rate. So, for instance, a 10 percent interest rate on $100 would be $10 a year.

Kerry: Okay, I see, but how is my monthly payment calculated?

Oscar: As the borrower, your monthly payment depends on the term of your loan. Each month, you’ll pay money toward the principal, plus the interest you owe the lender. The bank may also assess other fees for processing your loan, so make sure to read the fine print.

Kerry: Thanks. I understand it a little better now.

Oscar: Are you sure you want to go down that road? You don’t want to default on your loan and ruin your credit score. Maybe there are other options.

Kerry: Maybe there are, but I just don’t see any right now. I have an appointment with an accountant next week and hopefully she can advise me on the best course of action.

Oscar: Good luck and let me know if I can help.

Kerry: Thanks, I will.