Whether you shop at a franchise dealer, a used-car lot, or buy from a private seller, the numbers on your contract depend on how you buy, what reduces tax, and whether you finance taxes and fees. We walk through each piece with real dollar examples so you can sanity-check any calculator or dealer worksheet before you sign.
If you have already used a Kentucky auto loan calculator online, this article shows exactly what should happen behind those numbers—and which inputs must come from you because no government agency publishes them.
What Makes Kentucky Different
Kentucky vehicle taxation is not interchangeable with other states. | Input | Official default | Notes | A responsible calculator uses government defaults only—never industry survey averages for doc fees, credit-tier APR tables, or expired tax rates.
Important: This guide reflects official sources as of August 2026. Rates and fees change when legislatures act or agencies update schedules. Confirm final amounts with your lender and motor vehicle agency before signing.
Do not treat Georgia Title Ad Valorem Tax (TAVT) rules as if they applied in Kentucky. Each state has its own statute for how vehicle transfers are taxed.
Official Kentucky Fees and Tax Defaults (2026)
Some costs are fixed by statute or published on the state motor vehicle fee schedule. A compliant Kentucky auto loan calculator should prefill these—not averages from car-shopping websites.
| Input | Official default | Notes |
|---|---|---|
| Motor Vehicle Usage Tax (MVUT) | 6.0% of retail price | KRS 138.460(1). Statewide; not local sales tax. Minimum tax $6 (KRS 138.460(8)). |
| Title application | $9 | KRS 186A.130(1)(a) (in effect 29 Aug 2026; statute also restated through 1 Jan 2027). |
| Passenger registration | $11.50/year | KRS 186.050(1) (motor vehicles, pickup trucks, passenger vans). Additional county-clerk processing fees under KRS 64.012 are user-entered. |
| Speed title (optional) | $25 | KRS 186A.130(2). |
| EV / PHEV ownership fee | $120 base (DOR-adjusted annually) | KRS 138.475: $120 electric vehicles (includes plug-in hybrids); $60 electric motorcycles. DOR adjusts; never below base. Current adjusted dollar is user-entered if the clerk’s current-year print differs. Conventional (non-plug-in) hybrids: no extra ownership fee. |
| Lemon Law | No separate titling fee | KRS 367.840–367.846 (remedy statute; no $3-style add-on). |
| APR | 7.14% (60-month new-car bank) | Fed G.19, Q2 2026. No official used-car APR. User enters used / their quote. |
| Vehicle price, down, trade, rebate, GAP, warranty, doc fee, clerk add-ons, annual ad valorem property tax | User entered | No official “average price” or “average doc fee.” Doc fee has no statutory cap; default $0. Annual property tax (KRS 132.485) is not MVUT and is not a loan line item unless the user adds it. |
| Term | User entered; 60 is a reasonable chip because G.19 publishes a 60-month series | Do not treat 84 as official. |
| Credit-score presets | None | No official government APR-by-FICO table. |
Vehicle price, down payment, trade-in value, manufacturer rebates, GAP insurance, extended warranties, and optional add-ons are never official defaults. You enter those. Similarly, there is no official government used-car APR series—only the Federal Reserve’s new-car bank benchmarks discussed below.
References:
- Kentucky Department of Revenue / Motor Vehicle agency official publications (August 2026)
- State statutes cited in the official fact brief for Kentucky
Understanding Purchase Channels in Kentucky
How you buy the vehicle changes which tax base rules apply. Dealers typically collect tax at the point of sale for residents; private-party buyers often pay at the motor vehicle office. Out-of-state purchases may trigger credit or use-tax rules depending on how long you owned the car before moving to Kentucky.
When you use a Kentucky auto loan calculator, select the purchase channel that matches your deal. If you are unsure, ask the seller whether tax will be collected on the contract or at registration—then mirror that choice in the calculator’s roll-tax options.
Example 1: Dealer purchase with documented trade-in
Scenario: You buy a $28,000 sedan from a Kentucky dealer and trade a vehicle the dealer will resell. Your trade allowance is $5,000.
Selling price: $28,000 Trade-in allowance: − $5,000 ───────────────────────────── Taxable base: $23,000 (Apply Kentucky official rate to $23,000 per statute)
Your cash down payment does not reduce the taxable base in most states. It only changes how much you borrow after tax and fees are computed.
Example 2: Private-party purchase
Scenario: You pay a private seller $14,000 for a used car. There is no dealer to collect tax on the contract.
Reported purchase price: $14,000 Trade-in on private sale: Often $0 credit (state-specific) Tax: Paid at title/registration per Kentucky law Title & registration: Paid to motor vehicle agency
Private-party buyers should budget for tax and title fees at the DMV even if the seller only asks for the agreed purchase price on day one.
Benchmark Auto Loan Rates (Federal Reserve)
There is no Kentucky statewide official APR series. The official U.S. series is the Federal Reserve G.19 Consumer Credit release (Regulation Z APRs). Current release, 7 Aug 2026 (June / Q2 2026 data).
Bank rates are unweighted averages of each bank’s most common rate in the first calendar week of the middle month of the quarter — not origination-weighted, not Kentucky-specific.
| Series | Rate | Period |
|---|---|---|
| Commercial-bank 60-month new-car | 7.14% | Q2 2026 |
| Commercial-bank 72-month new-car | 6.97% | Q2 2026 |
| Finance-company new-car (amount-weighted) | 6.1% (Q1) / 6.08% (Mar 2026, FRED RIELPCFANNM) | 2026 |
Do not treat the 72-month bank print sitting below 60-month as “longer terms are cheaper.” G.19 says that is the banks’ “most common” quoted mix, not a term premium.
Used cars: G.19 does not publish a used-car APR. The calculator must not invent one. Default used APR = blank / user-entered. Optional illustration only: reuse 7.14% and label it “shown at the official 60-month new-car bank rate; enter your used quote.”
Context (official, not a calculator default): effective federal funds 3.63% (H.15, 21–27 Aug 2026); bank prime 6.75%.
Calculator APR behavior: amortize at the user’s rate. Prefill 7.14% only as the G.19 60-month new-car bank average. Disclose: *estimate, not a TILA quote or a lender offer.*
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How Kentucky Vehicle Tax and Fees Work
MVUT — 6% usage tax, not sales tax, not a county-varying rate
Kentucky does not collect Chapter 139 sales tax on a highway-use motor vehicle at the clerk (unless the owner files a nonhighway-use affidavit, in which case Chapter 139 sales/use tax is collected instead — KRS 138.460(3)). The highway tax is one-time Motor Vehicle Usage Tax.
- Rate: six percent (6%) of retail price — KRS 138.460(1).
- Collected by the county clerk at first titling/registration in Kentucky, or on a later title/registration transfer — KRS 138.460(2).
- The buyer’s rate does not change by county. Clerk retainage (3% of tax collected) is an administrative split, not a local add-on.
- Minimum tax $6 on titling or first registration, except exemptions — KRS 138.460(8).
- DOR (accessed 29 Aug 2026): “It is levied at six percent and shall be paid on every motor vehicle used in Kentucky.”
https://revenue.ky.gov/Property/Motor-Vehicles/Pages/Motor-Vehicle-Usage-Tax.aspx
Official tools (link; do not scrape): county clerk; Affidavit of Total Consideration Form 71A100 / TC 96-182; DOR MVUT page. Valuation manuals: 103 KAR 44:060 (NADA / prescribed reference).
How retail price is computed (KRS 138.450 / 138.4603 + DOR)
Follow the statute and notarized affidavit, not a blog “book value” shortcut. An old program cap on new-vehicle trade-in credit expired 30 Jun 2014; trade-in is allowed on new vehicles on and after 1 Jul 2014.
| Channel | Official retail price | Trade-in reduces MVUT? | Manufacturer rebate |
|---|---|---|---|
| New (affidavit available) | Total consideration given, minus trade-in allowance attested on the notarized affidavit (KRS 138.4603; DOR) | Yes | Treat as part of consideration only if it actually reduces the price the buyer pays; do not invent a rebate rule. User-entered. |
| New (no affidavit) | 90% of MSRP including standard/optional equipment and destination charges — KRS 138.4603(2)(b); DOR | Trade-in valued from the reference manual if no affidavit | n/a |
| Used (affidavit available) | Total consideration given, minus trade-in, provided selling price is not less than 50% of (reference-manual trade-in of the purchased vehicle minus reference-manual trade-in of the vehicle offered in trade) — KRS 138.450(16); DOR | Yes, subject to the 50% floor | No statutory rebate subtraction |
| Used (no affidavit) | Average retail value from the prescribed reference manual (NADA / 103 KAR 44:060) | Trade also valued from the same manual | No |
| New resident (vehicle already titled/registered in another state) | MVUT on applicable retail price, minus reciprocal credit | Typical pattern is a car already owned | n/a |
In retail price (consideration): the cash or amount financed plus the value of any vehicle traded (the trade is then subtracted when the affidavit path applies). Out of MVUT (do not add as extra tax): ordinary title/registration/license fees; separately billed finance, insurance, and interest. Doc/processing charges that are part of the vehicle consideration are in the affidavit total unless the statute excludes them — default: in the base if the dealer includes them in the selling price.
Cash down does not reduce MVUT. Negative equity does not create extra MVUT. There is no Chapter 139 local-option sales tax stacked on a titled highway vehicle.
Do not use: Georgia TAVT; a 6% sales tax *plus* local add-ons; `max(price, book)` as a universal engine; the expired new-vehicle trade-in program cap.
Official special MVUT / credit rules (not the default)
| Status | Rule | Authority |
|---|---|---|
| Standard | 6.0% of retail price | KRS 138.460(1) |
| Reciprocal credit (first Kentucky registration) | Credit equal to tax paid to another state that levied a substantially identical tax, only if that state grants similar credit for Kentucky tax | KRS 138.460(6)(a); DOR |
| Kentucky sales/use tax already paid at titling (nonhighway path) | Nonrefundable credit against MVUT | KRS 138.460(6)(b) |
| Nonhighway affidavit | MVUT not collected; Chapter 139 sales/use tax collected instead | KRS 138.460(3) |
| Dealer replacement within 60 days | MVUT refund; new-vehicle registration cancelled | KRS 138.460(9) |
| Manufacturer defect replacement/refund within 90 days | MVUT refund | KRS 138.460(10) |
| Arbitration / litigation / 16 C.F.R. 703 | MVUT refund (time limits of (9)–(10) do not bar) | KRS 138.460(11) |
Reciprocity is not automatic. No credit if the other state does not grant similar credit. Proof: prior registration/title showing tax paid, or purchase contract identifying tax, buyer, seller, and VIN (finance contracts are not accepted — DOR).
Official title, tag, lemon, EV
| Item | Amount | Source |
|---|---|---|
| Certificate of title application | $9 | KRS 186A.130(1)(a) |
| Corrected / printed title | $6 | KRS 186A.130(1)(b)–(c) |
| Speed title | $25 | KRS 186A.130(2) |
| Passenger / pickup / passenger-van annual registration | $11.50 | KRS 186.050(1) |
| Motorcycle annual registration | $9 | KRS 186.050(2)(a) |
| EV / PHEV annual ownership fee (base) | $120 | KRS 138.475(3)(a); collected with registration (KRS 186.050(16)). Clerk may retain $1. |
| Electric motorcycle ownership fee (base) | $60 | KRS 138.475(3)(b) |
| Lemon Law (new; 12 months / 12,000 miles) | No extra titling dollar | KRS 367.842 |
| Documentary / dealer doc fee | No statutory cap | No KRS cap located; default $0 |
Omitted on purpose (not official statewide calculator defaults): average doc fee; county clerk card/processing add-ons beyond KRS 186.050; annual ad valorem property tax millage (KRS 132.485 — billed at renewal, varies by value and locality). If the calculator shows them, they are user-entered, default $0.
The EV ownership fee is an annual registration cost, not part of MVUT. Conventional hybrids: no extra KRS 138.475 fee after the 2025 rewrite (the statute now covers plug-in vehicles only).
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Interest Rates: What the Government Actually Publishes
Kentucky does not publish an official statewide auto loan APR. The closest government benchmark is the Federal Reserve’s G.19 Consumer Credit release (Regulation Z APRs for new-car loans).
As of the August 7, 2026 release (Q2 2026 / June data):
| Series | Rate | Period |
|---|---|---|
| Commercial bank 60-month new car | 7.14% | Q2 2026 |
| Commercial bank 72-month new car | 6.97% | Q2 2026 |
| Finance company new car (amount-weighted) | 6.08% | Mar 2026 (FRED) |
These are not your guaranteed rate. Bank figures are unweighted averages of each bank’s most common quoted rate in a specific week—not weighted by loan volume, and not Kentucky-specific.
Important: G.19 does not publish a used-car APR. There is no official government “used car rate” to prefill. Enter your lender’s quote. A calculator may show 7.14% only as an illustration labeled as the new-car bank average—not as a promise of your rate.
Do not assume longer terms are cheaper just because the 72-month bank average (6.97%) prints below the 60-month average (7.14%). The Fed explains that reflects which rate each bank quotes most often, not a mathematical term premium.
References:
- Federal Reserve G.19 Consumer Credit (release dated August 7, 2026)
- Federal Reserve H.15 Selected Interest Rates
How Loan Payments Are Calculated
Treat the entered rate as a nominal annual rate, compounded monthly. Monthly rate \(i = \text{rate}/12\). For amount financed \(P\) over \(n\) months:
\[ M = P \times \frac{i\,(1+i)^{n}}{(1+i)^{n}-1} \]
If \(i = 0\), \(M = P/n\). Round \(M\) to cents (ROUND_HALF_UP); last payment clears the residual. Totals from the schedule.
Amount financed ≈ (price − down − trade + trade payoff − rebate) + rolled MVUT/fees/doc + financed GAP/warranty. Cash due ≈ down + any MVUT/fees/doc not rolled. Cash down does not change MVUT. Rolling MVUT finances the tax; it does not change the tax.
This is an estimate, not a Regulation Z APR solution.
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Amount financed is approximately: vehicle price (plus taxable doc fees where applicable), minus down payment, trade-in, and rebates (per state rules), plus trade payoff if you owe more than the trade is worth, plus rolled taxes and title/registration fees, plus financed GAP or warranty.
Cash due at signing is approximately your down payment plus any tax and fees you pay upfront instead of financing.
Rolling tax into the loan does not change the tax owed—it changes when you pay it and how much interest you pay over the life of the loan.
Important: Any online estimate is not a Truth in Lending (Regulation Z) disclosure and is not a lender offer. Your bank’s contract controls the final payment, fees, and APR.
Official Worked Examples
The examples below use the same assumptions as the official Kentucky fact brief: $38,000 vehicle price, $3,800 down, no trade or rebate unless noted, Fed G.19 60-month bank APR 7.14%, 60-month term, and taxes/fees rolled unless Example B says otherwise.
Example A — MVUT + title + tag rolled
Scenario: Price $38,000, down $3,800. MVUT = 0.06 × 38,000 = $2,280. Amount financed \(P\) = 38,000 − 3,800 + 2,280 + 9 + 11.50 = $36,500.50. | | Amount | |—|—:| | Monthly payment | $725.17 | | Cash due | $3,800.00 | | Total of payments | $43,509.97 | | Total interest | **
Price $38,000, down $3,800.
MVUT = 0.06 × 38,000 = $2,280.
Amount financed \(P\) = 38,000 − 3,800 + 2,280 + 9 + 11.50 = $36,500.50.
Example B — Same deal, MVUT + fees cash
Scenario: \(P\) = 38,000 − 3,800 = $34,200. MVUT $2,280 + $9 + $11.50 paid at signing. | | Amount | |—|—:| | Monthly payment | $679.46 | | Cash due | $6,100.50 | | Total of payments | $40,767.75 | | Total interest | $6,567.75 | Rolling costs $441.72 extra interest vs cash, and **
\(P\) = 38,000 − 3,800 = $34,200. MVUT $2,280 + $9 + $11.50 paid at signing.
Rolling costs $441.72 extra interest vs cash, and $2,300.50 less cash at signing.
Example C — Used dealer with trade (affidavit)
Scenario: Do not default used dealer sales to the assessment-manual average when a qualifying affidavit is presented. Payment is not shown at a “used official APR” — G.19 has none. Use the user’s rate, or illustrate at 7.14% and label it.
Price $18,500 (includes doc), trade $3,000.
Taxable retail price = 18,500 − 3,000 = $15,500, unless that is below the 50% NADA-difference floor — then use the floor.
MVUT = 0.06 × 15,500 = $930 if the floor does not bind.
MVUT = 0.06 × 15,500 = $930 if the floor does not bind. Do not default used dealer sales to the assessment-manual average when a qualifying affidavit is presented. Payment is not shown at a “used official APR” — G.19 has none. Use the user’s rate, or illustrate at 7.14% and label it.
Example D — No affidavit (used)
Scenario: —
Same $18,500 price. Without Form 71A100 / TC 96-182, retail price is the prescribed-manual average retail, not the contract price. MVUT = 0.06 × (user-entered book retail). Title $9 + tag $11.50 still due.
Planning Cash Due vs Monthly Payment
Two numbers matter at signing: cash due and monthly payment. They move in opposite directions when you roll taxes and fees into the loan. Financing $2,500 of tax at 7.14% over 60 months adds roughly $50 per month in payment—but keeps that $2,500 out of your wallet on day one.
Neither choice changes the tax owed to Kentucky. It only changes how much interest you pay over time. Compare both structures using the official worked examples above before you decide at the dealer finance office.
Example: Rolling $2,000 of fees vs paying cash
If you finance an extra $2,000 at 7.14% / 60 months: Monthly payment increases by about $40 Total extra interest ≈ $385 over 5 years If you pay the $2,000 at signing: Monthly payment stays lower You need $2,000 more cash on day one
Use the Kentucky calculator’s roll-tax and roll-fees checkboxes to see both sides with your actual price and down payment.
Kentucky Lending Notes (Not Calculator Line Items)
- Delinquency on a retail installment contract: 5% of the installment or $15, whichever is greater, after 10 days on 28-day-or-longer installments (3 days if the installment period is shorter than 28 days) — KRS 190.100(1)(d).
- No cooling-off on a dealership purchase (FTC / Kentucky home-solicitation rules do not apply at the lot).
- Lemon Law (new): manufacturer refund/replace if a substantial nonconformity is not repaired in the first 12 months or 12,000 miles, after a reasonable number of attempts — KRS 367.842. MVUT refund path: KRS 138.460(10)–(11).
- Doc fee: no statutory cap. Never invent a market average.
- GAP / warranties: if financed, add to principal. Do not treat them as extra MVUT unless they are included in affidavit consideration for the vehicle itself.
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How the Kentucky Auto Loan Calculator Works
Our VehicleTaxCalculator.com Kentucky auto loan calculator follows the same logic described in this guide:
- Purchase details — You enter price, down payment, trade-in, payoff, rebates, and any taxable or non-taxable doc fees per Kentucky law.
- Tax computation — The tool applies the official Kentucky rate or formula to the correct taxable base (which may differ for dealer vs private-party purchases).
- Fees — Title, registration, plate, and state-specific surcharges use official defaults where published; county or local add-ons stay user-entered.
- Roll-in flags — Choose whether to finance taxes and/or title and registration fees.
- Financing — APR defaults to 7.14% (G.19 60-month new-car bank average); term defaults to 60 months. Change both to match your lender.
- Results — You see tax breakdown, amount financed, estimated monthly payment, cash due, total of payments, and total interest.
Example: Using the calculator for a quick check
Scenario: You are buying a $32,000 vehicle with $4,000 down at a Kentucky dealer. You plan to roll tax and fees into the loan and your credit union quoted 6.9% for 72 months.
Enter: Price $32,000 | Down $4,000 | APR 6.9% | Term 72 Enable: Roll tax into loan | Roll fees into loan Compare: Monthly payment and cash due vs dealer worksheet
If the dealer’s payment is far higher, ask which fees were included in the tax base or amount financed—Kentucky rules may treat doc fees, trade-ins, or rebates differently than you assumed.
Common Questions
Should I roll taxes into my loan?
Rolling Kentucky’s vehicle tax or excise into financing does not change how much tax you owe. It spreads the cost across monthly payments and adds interest. Many buyers finance tax for cash-flow reasons; others pay at the tag office to save interest.
What APR should I use?
The Federal Reserve G.19 series publishes a 60-month new-car bank average of 7.14% (Q2 2026). That is an illustration, not your guaranteed rate. G.19 does not publish used-car APRs—enter your lender’s quote.
Are dealer doc fees official?
Most states do not publish average doc fees as government data. Kentucky may cap or tax doc fees differently; see the official fee table above. Default doc fees to $0 unless you know your dealer’s charge.
Is this a Truth in Lending disclosure?
No. Any online calculator—including ours—is an estimate for planning. Your signed retail installment contract and lender disclosures control the binding payment and APR.
Should I rely on Experian / Edmunds / Bankrate / LendingTree APRs or credit-tier tables?
No. Experian / Edmunds / Bankrate / LendingTree APRs or credit-tier tables is not an official government figure for calculator defaults. Use only statute-backed rates and fees, or enter your own numbers.
Should I rely on CarEdge (or any) average doc fee?
No. CarEdge (or any) average doc fee is not an official government figure for calculator defaults. Use only statute-backed rates and fees, or enter your own numbers.
Should I rely on Credit-union advertised floors as a statewide rate?
No. Credit-union advertised floors as a statewide rate is not an official government figure for calculator defaults. Use only statute-backed rates and fees, or enter your own numbers.
Should I rely on Georgia TAVT or any ad valorem title tax?
No. Georgia TAVT or any ad valorem title tax is not an official government figure for calculator defaults. Use only statute-backed rates and fees, or enter your own numbers.
Should I rely on Local sales-tax add-ons on the car?
No. Local sales-tax add-ons on the car is not an official government figure for calculator defaults. Use only statute-backed rates and fees, or enter your own numbers.
Should I rely on The pre-2014 new-vehicle trade-in cap?
No. The pre-2014 new-vehicle trade-in cap is not an official government figure for calculator defaults. Use only statute-backed rates and fees, or enter your own numbers.
What Belongs in a Calculator vs What You Must Enter
| Input | Official default? | Notes |
|---|---|---|
| State vehicle tax / excise rate | Yes — per statute | 6.0% |
| Title and registration fees | Yes — where fixed | State fee schedule |
| APR (new, illustrative) | Yes — 7.14% at 60 mo | Fed G.19 Q2 2026 only |
| Vehicle price, down, trade | No | You enter |
| Used-car APR | No | No government series |
| Doc fee average | No | Default $0 unless capped by law |
| Credit score tiers | No | Not published officially |
| County / local add-ons | Often user-entered | Verify local schedule |
Data Sources and Accuracy
This guide and the Kentucky auto loan calculator rely on:
- Kentucky statutes and administrative rules cited in the official fact brief
- State department of revenue and motor vehicle publications (fee schedules, tax bulletins, forms)
- Federal Reserve G.19 and H.15 releases for benchmark interest rates
Rates and fees can change when the legislature acts or when agencies update bulletins. Always confirm final amounts with your lender and Kentucky motor vehicle office before signing.
Conclusion
Kentucky car financing is built on three layers: vehicle tax or excise (how you buy determines the tax base), official title and registration fees (fixed dollar amounts where published), and loan math (amount financed, APR, and term—with government benchmarks only for new-car bank averages, not your personal rate).
The biggest mistakes shoppers make are using another state’s tax model, trusting credit-tier APR tables with no official source, or forgetting that rolling tax into the loan increases total interest. Work through your deal with the purchase channel, roll-in choices, and your lender’s actual quote—and compare the result to the state’s own publications when you are ready to title the vehicle.
Disclaimer: This article is for educational purposes only. It is not legal, tax, or financial advice. Figures reflect official sources as of August 2026. Your dealer, lender, and state motor vehicle agency determine binding amounts on your contract and title paperwork.
Complete Reference List
- KRS 138.450, 138.460, 138.4603, 138.470, 138.475 (MVUT and EV ownership fees); KRS 186.050, 186A.130 (registration and title); KRS 190.100 (retail installment delinquency); KRS 367.842 (Lemon Law).
- 103 KAR 44:060 (MVUT valuation / reference manuals).
- Kentucky DOR Motor Vehicle Usage Tax page and Form 71A100 / TC 96-182; DRIVE EV ownership fee.
- Federal Reserve G.19 (7 Aug 2026 release); H.15 selected interest rates (28 Aug 2026 release); FRED RIELPCFANNM.
- Federal Reserve G.19 Consumer Credit
- Federal Reserve H.15 Selected Interest Rates