Interest rates on variable products are determined using the Interest Rate Index, which tracks changes in interest rates over time for setting rates.
Interest rates on variable products are determined using the Interest Rate Index. This index tracks changes in interest rates over time and serves as a benchmark for setting the rates on variable products such as adjustable-rate mortgages or variable annuities.
The Interest Rate Index is a key factor in determining the profitability and attractiveness of variable products to investors. It provides a transparent and standardized way to adjust interest rates based on market conditions, ensuring fairness and accuracy in the pricing of these financial products.
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