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1993 interest rate for demand loans.



Revenue ruling 93-42 (IRB IRB

See: Industrial Revenue Bond
 no. 1993-24) announced the blended annual rate for 1993 demand loans is 4.16%. This is the minimum required interest rate for amounts outstanding for the entire calendar year (see revenue ruling 86-17).

For demand loans with principal amounts that fluctuate during the year, the minimum interest rate is based on a month-by-month computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking.  using the short-term Short-term

Any investments with a maturity of one year or less.


short-term

1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time.
 applicable federal rate issued for each month.

Observation: With long-term IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws.  minimum rates at an all-time low (about 6.5% for long-term notes over nine years originating in mid-1993), taxpayers may wish to convert open demand note to fixed-term obligations.
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Copyright 1993, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Journal of Accountancy
Article Type:Brief Article
Date:Sep 1, 1993
Words:101
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