Need help with interest rate!

Discussion in 'Budget Board' started by Free4Life11, Jun 24, 2009.

  1. Free4Life11

    Free4Life11 DIS Cast Member<br><font color=red>I just have to

    Apr 26, 2002
    Hi I need some help regarding an interest rate. I have a variable rate student loan and the rate adjusts each calendar quarter. They sent me a notice saying that the rate will be 4.875% effective the quarter beginning July 1. I am questioning this rate, but I don't want to call before double checking this.

    Here is how my rate is calculated, per the promissory note:

    I went to the WSJ website ( and the 3-month LIBOR rate on June 1, 2009 was 0.65.

    So I believe my rate should actually be 3.625, which is 2.9 + .65 = 3.55, rounded up to 3.625%

    Is this correct or am I missing something?
  2. Cheshire Figment

    Cheshire Figment <font color=red><marquee behavior=alternate>Friend

    Jan 12, 2001
    If the numbers are correct, then your calculations appear to be correct.

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