How Do You Spell APPLICABLE RATE?

Pronunciation: [ɐplˈɪkəbə͡l ɹˈe͡ɪt] (IPA)

The word "applicable rate" is spelled as /ˈæplɪkəbəl reɪt/. The first syllable is pronounced as "ap" with a short "a" sound, while the second syllable is pronounced as "pli" with a long "i" sound. The stress in the word falls on the second syllable. The third and fourth syllables are pronounced as "kə" and "bəl," respectively. The final syllable is pronounced as "reɪt," with a long "a" sound. In financial terms, the applicable rate refers to the interest rate applied to a loan or credit line.

APPLICABLE RATE Meaning and Definition

1. The term "applicable rate" is used in financial and legal contexts to refer to the specific interest rate or charge that is relevant and applicable to a particular situation or transaction. It determines the percentage or amount of interest, fees, or charges that will be levied on a loan or other financial obligation. The applicable rate is typically set by an authoritative entity, such as a central bank, regulatory agency, or governing body.

   In banking and finance, the applicable rate is often used in relation to loans and mortgages. It represents the interest rate that borrowers will be charged based on their creditworthiness, the type of loan, and prevailing market conditions. For instance, a creditworthy borrower may be offered a lower applicable rate compared to someone with a poor credit history.

   In legal and contractual contexts, the applicable rate may be used to determine penalties, fees, or charges in the event of default or breach of contract. It ensures that parties are subject to the agreed-upon consequences, based on the applicable legal framework or contractual terms.

   The applicable rate is an essential component of financial and legal agreements as it establishes the financial implications and obligations for the parties involved. It ensures fairness and consistency, providing clarity on how interest, fees, or charges will be calculated and enforced.

Etymology of APPLICABLE RATE

The word "applicable" originated from the Latin word "applicābilis", which is derived from the verb "applicāre", meaning "to apply" or "to put to use". The suffix "-able" is used to indicate that something is capable of being applied.

The term "rate" comes from the Middle English word "raten", which is derived from the Old French word "rat", meaning "proportion" or "relationship". It can be traced back to the Latin word "ratus", which means "reckoned" or "calculated".

When combined, "applicable rate" refers to a rate or percentage that is relevant, suitable, or capable of being applied to a particular situation or context.