Long-term product offerings include active and index strategies.
Our active strategies seek to earn attractive returns in excess of a market benchmark or performance hurdle while maintaining an appropriate risk profile.
We offer two types of active strategies: those that rely primarily on fundamental research and those that utilize primarily quantitative models to drive portfolio construction.
In contrast, index strategies seek to closely track the returns of a corresponding index, generally by investing in substantially the same underlying securities within the index or in a subset of those securities selected to approximate a similar risk and return profile of the index.
Index strategies include both our non-ETF index products and iShares ETFs.
Although many clients use both active and index strategies, the application of these strategies may differ.
For example, clients may use index products to gain exposure to a market or asset class.
In addition, institutional non-ETF index assignments tend to be very large (multi-billion dollars) and typically reflect low fee rates.
This has the potential to exaggerate the significance of net flows in institutional index products on BlackRock’s revenues and earnings.
Equity Year-end 2014 equity AUM of $2.451 trillion increased by $133.4 billion, or 6%, from the end of 2013 due to net new business of $52.4 billion and net market appreciation and foreign exchange movements of $81.0 billion.
Net inflows were driven by $59.6 billion and $17.7 billion into iShares and non-ETF index accounts, respectively.
Index inflows were offset by active net outflows of $24.9 billion, with outflows of $18.0 billion and $6.9 billion from fundamental and scientific active equity products, respectively.
BlackRock’s effective fee rates fluctuate due to changes in AUM mix.
Approximately half of BlackRock’s equity AUM is tied to international markets, including emerging markets, which tend to have higher fee rates than similar U. S.  equity strategies.
Accordingly, fluctuations in international equity markets, which do not consistently move in tandem with U. S.  markets, may have a greater impact on BlackRock’s effective equity fee rates and revenues.
Fixed Income Fixed income AUM ended 2014 at $1.394 trillion, increasing $151.5 billion, or 12%, from December 31, 2013.
The increase in AUM reflected $96.4 billion in net new business and $55.1 billion in net market appreciation and foreign exchange movements.
In 2014, net new business was diversified across fixed income offerings, with strong flows into our unconstrained, total return and high yield products.
Flagship funds in these product areas include our unconstrained Strategic Income Opportunities and Fixed Income Global Opportunities funds, with net inflows of $13.3 billion and $4.2 billion, respectively; our Total Return fund with net inflows of $2.1 billion; and our High Yield Bond fund with net inflows of $2.1 billion.
Fixed income net inflows were positive across investment styles, with iShares, nonETF index, and active net inflows of $40.0 billion, $28.7 billion and $27.7 billion, respectively.
Multi-Asset Class BlackRock’s multi-asset class team manages a variety of balanced funds and bespoke mandates for a diversified client base that leverages our broad investment expertise in global equities, currencies, bonds and commodities, and our extensive risk management capabilities.
Investment solutions might include a combination of long-only portfolios and alternative investments as well as tactical asset allocation overlays.
Component changes in multi-asset class AUM for 2014 are presented below.
## Table 0 ##
Flows reflected ongoing institutional demand for our solutions-based advice with $15.1 billion, or 52%, of net inflows coming from institutional clients.
Defined contribution plans of institutional clients remained a significant driver of flows, and contributed $12.8 billion to institutional multiasset class net new business in 2014, primarily into target date and target risk product offerings.
Retail net inflows of $13.4 billion were driven by particular demand for our MultiAsset Income fund, which raised $6.3 billion in 2014.
The Company’s multi-asset strategies include the following: ?
Asset allocation and balanced products represented 48% of multi-asset class AUM at year-end, with growth in AUM driven by net new business of $18.4 billion.
These strategies combine equity, fixed income and alternative components for investors seeking a tailored solution relative to a specific benchmark and within a risk budget.
In certain cases, these strategies seek to minimize downside risk through diversification, derivatives strategies and tactical asset allocation decisions.
Flagship products in this category include our Global Allocation and Multi-Asset Income suites.  ?
Target date and target risk products grew 10% organically in 2014.
Institutional investors represented 90% of target date and target risk AUM, with defined contribution plans accounting for over 80% of AUM.
The remaining 10% of target date and target risk AUM consisted of retail client investments.
Flows were driven by defined contribution investments in our LifePath and LifePath Retirement Income?
offerings.
LifePath products utilize a proprietary asset allocation model that seeks to balance risk and return over an investment horizon based on the investor’s expected retirement timing.  ?
Fiduciary management services are complex mandates in which pension plan sponsors or endowments and foundations retain BlackRock to assume responsibility for some or all aspects of plan management.
These customized services require strong partnership with the clients’ investment staff and trustees in order to tailor investment strategies to meet client-specific risk budgets and return objectives.
Long-term Borrowings.
The carrying value of long-term borrowings at December 31, 2014 included the following:
## Table 1 ##
In March 2014, the Company issued $1.0 billion in aggregate principal amount of 3.50% senior unsecured and unsubordinated notes maturing in March 2024.
During 2014, the Company repaid $1.0 billion of 3.50% notes at maturity For more information on Company’s borrowings, see Note 12, Borrowings, in the notes to the consolidated financial statements beginning on page F-1 of this Form 10-K.
Contractual Obligations, Commitments and Contingencies The following table sets forth contractual obligations, commitments and contingencies by year of payment at December 31, 2014:
## Table 2 ##
(1) Long-term borrowings exclude the borrowings of consolidated CLOs.
The Company has no obligation to settle the liabilities of these CLOs.
(2) The amount of contingent payments reflected for any year represents the expected payment amounts, using foreign currency exchange rates as of December 31, 2014, under the terms of the business acquisition’s agreement.
The remaining maximum potential payment amount related to Credit Suisse ETF Transaction is approximately $24 million for any year during the next six years.
There is no maximum amount for payments related to the MGPA Transaction.
The fair value of the contingent obligations is not significant to the consolidated statement of financial condition and is recorded within other liabilities.
(3) At December 31, 2014, the Company had $334 million of net unrecognized tax benefits.
Due to the uncertainty of timing and amounts that will ultimately be paid, this amount has been excluded from the table above.
Operating Leases.
The Company leases its primary office locations under agreements that expire on varying dates through 2035.
In connection with certain lease agreements, the Company is responsible for escalation payments.
The contractual obligations table above includes only guaranteed minimum lease payments for such leases and does not project potential escalation or other lease-related payments.
These leases are classified as operating leases and, as such, are not recorded as liabilities on the consolidated statements of financial condition.
Purchase Obligations.
In the ordinary course of business, BlackRock enters into contracts or purchase obligations with third parties whereby the third parties provide services to or on behalf of BlackRock.
Purchase obligations included in the contractual obligations table above represent executory contracts, which are either noncancelable or cancelable with a penalty.
At December 31, 2014, the Company’s obligations primarily reflected standard service contracts for portfolio, market data, office-related services and third-party marketing and promotional services, and obligations for equipment.
Purchase obligations are recorded on the Company’s financial statements when services are provided and, as such, obligations for services not received are not included in the consolidated statement of financial condition at December 31, 2014.
Investment Commitments.
At December 31, 2014, the Company had $161 million of various capital commitments to fund sponsored investment funds, including funds of private equity funds, real estate funds, infrastructure funds, opportunistic funds and distressed credit funds.
This amount excludes additional commitments made by consolidated funds of funds to underlying third-party funds as third-party noncontrolling interest holders have the legal obligation to fund the respective commitments of such funds of funds.
In addition to the capital commitments of $161 million, the
THE HERSHEY COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) (amounts in thousands, except share data or if otherwise indicated) (a) This category comprises equity funds that track the Russell 3000 index.
(b) This category comprises equity funds that track the S&P 500 and/or Russell 1000 indices.
(c) This category comprises equity funds that track the MSCI World Ex-US index.
(d) This category comprises equity funds that track the MSCI World index.
(e) This category comprises fixed income funds primarily invested in investment grade bonds.
(f) This category comprises fixed income funds primarily invested in high quality mortgage-backed securities and other asset-backed obligations.
(g) This category comprises fixed income funds invested in Canadian and other international bonds.
The fair value of the Level 1 assets was based on quoted prices in active markets for the identical assets.
The fair value of the Level 2 assets was determined by management based on an assessment of valuations provided by asset management entities and was calculated by aggregating market prices for all underlying securities.
Investment objectives for our domestic plan assets are: To ensure high correlation between the value of plan assets and liabilities; To maintain careful control of the risk level within each asset class; and To focus on a long-term return objective.
We believe that there are no significant concentrations of risk within our plan assets as of December 31, 2014.
We comply with the rules and regulations promulgated under the Employee Retirement Income Security Act of 1974 (“ERISA”) and we prohibit investments and investment strategies not allowed by ERISA.
We do not permit direct purchases of our Company’s securities or the use of derivatives for the purpose of speculation.
We invest the assets of non-domestic plans in compliance with laws and regulations applicable to those plans.
Cash Flows Our policy is to fund domestic pension liabilities in accordance with the limits imposed by the ERISA, federal income tax laws and the funding requirements of the Pension Protection Act of 2006.
We fund non-domestic pension liabilities in accordance with laws and regulations applicable to those plans.
We made total contributions to the pension plans of $29,409 during 2014, including contributions of $22,000 to improve the funded status of our domestic plans.
In 2013, we made total contributions of $32,336 to the pension plans.
For 2015, minimum funding requirements for our pension plans are approximately $1,088 and we expect to make additional contributions of approximately $23,600 to improve the funded status of our domestic plans.
Total benefit payments expected to be paid to plan participants, including pension benefits funded from the plans and other benefits funded from Company assets, are as follows:

<table><tr><td><i>(in millions)</i></td><td>December 31, 2013</td><td>Net Inflows (Outflows)</td><td>Market Change</td><td>FX Impact</td><td>December 31, 2014</td></tr><tr><td>Asset allocation and balanced</td><td>$169,604</td><td>$18,387</td><td>$-827</td><td>$-4,132</td><td>$183,032</td></tr><tr><td>Target date/risk</td><td>111,408</td><td>10,992</td><td>7,083</td><td>-872</td><td>128,611</td></tr><tr><td>Fiduciary</td><td>60,202</td><td>-474</td><td>14,788</td><td>-8,322</td><td>66,194</td></tr><tr><td>Multi-asset</td><td>$341,214</td><td>$28,905</td><td>$21,044</td><td>$-13,326</td><td>$377,837</td></tr></table>
<table><tr><td> <i>(in millions)</i> </td><td> Maturity Amount</td><td> Carrying Value</td><td> Maturity</td></tr><tr><td>1.375% Notes</td><td>$750</td><td>$750</td><td>June 2015</td></tr><tr><td>6.25% Notes</td><td>700</td><td>699</td><td>September 2017</td></tr><tr><td>5.00% Notes</td><td>1,000</td><td>998</td><td>December 2019</td></tr><tr><td>4.25% Notes</td><td>750</td><td>747</td><td>May 2021</td></tr><tr><td>3.375% Notes</td><td>750</td><td>747</td><td>June 2022</td></tr><tr><td>3.50% Notes</td><td>1,000</td><td>997</td><td>March 2024</td></tr><tr><td> Total Long-term Borrowings</td><td>$4,950</td><td>$4,938</td><td></td></tr></table>
<table><tr><td> <i>(in millions)</i> </td><td> 2015</td><td> 2016</td><td> 2017</td><td> 2018</td><td> 2019</td><td> Thereafter</td><td> Total</td></tr><tr><td> Contractual obligations and commitments:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Long-term borrowings<sup>-1</sup>:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Principal</td><td>$750</td><td>$—</td><td>$700</td><td>$—</td><td>$1,000</td><td>$2,500</td><td>$4,950</td></tr><tr><td>Interest</td><td>191</td><td>186</td><td>186</td><td>142</td><td>142</td><td>269</td><td>1,116</td></tr><tr><td>Operating leases</td><td>126</td><td>111</td><td>112</td><td>111</td><td>105</td><td>613</td><td>1,178</td></tr><tr><td>Purchase obligations</td><td>168</td><td>68</td><td>11</td><td>1</td><td>—</td><td>—</td><td>248</td></tr><tr><td>Investment commitments</td><td>161</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>161</td></tr><tr><td> Total contractual obligations and commitments</td><td>1,396</td><td>365</td><td>1,009</td><td>254</td><td>1,247</td><td>3,382</td><td>7,653</td></tr><tr><td> Contingent obligations:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Contingent distribution obligations</td><td>189</td><td>189</td><td>—</td><td>—</td><td>—</td><td>—</td><td>378</td></tr><tr><td>Contingent payments related to businessacquisitions<sup>-2</sup></td><td>5</td><td>10</td><td>7</td><td>19</td><td>9</td><td>11</td><td>61</td></tr><tr><td> Total contractual obligations, commitments and contingent obligations<sup>-3</sup></td><td>$1,590</td><td>$564</td><td>$1,016</td><td>$273</td><td>$1,256</td><td>$3,393</td><td>$8,092</td></tr></table>

Question: What is the growing rate of interest in the year with the most principle?
Answer: 0.30986