Total assets = Total liabilities + Equity. The balance sheet is one of the key elements in the financial statements, of which the other documents are the income statement and the statement of cash flows. A statement of retained earnings may sometimes be attached.
Fixed Rate Defined. A fixed interest rate means that the interest rate that you will be charged over the term of your loan will not change, no matter how high or how low the market may drive interest rates. Your payment will remain the same on your last payment as it was on your first payment.
Interest. Interest is the cost of borrowing money. An interest rate is the cost stated as a percent of the amount borrowed per period of time, usually one year. The prevailing market rate is composed of: 1  The Real Rate of Interest that compensates lenders for postponing their own spending during the term of the loan.