How is the rate-of-return easier to understand?

Q: What is a simple interest rate?

A: Interest is the cost of borrowing money, where the borrower pays a fee to the lender for the loan or…

Q: Which are the Decision Rule for Simple Investments?

A: Answer - Simple Investment - Investment which an individual do into there day to day life like…

Q: 1. If the nominal interest rate of is 2% per quarter, what is the nominal rate per year ? A) 0.5% B)…

A: The nominal interest rate is the rate that is charged by the banks when they lend money to any…

Q: What would a pure services economy look like? Do you think this is practical fora small country with…

A: The economy has various sectors such as the primary sector, the secondary sector, and the tertiary…

Q: What is the effect of technological innovations on loanable funds market?

A: Technological innovation refers to the situation when a firm is using an advanced technology that…

Q: Explain Decision Rule for Simple Investments?

A: The investment is an important aspect that determines the development and growth of the economy. The…

Q: What is Ex-dividend?

A: A synonym for 'without dividend'.

Q: If sales are $88 million and change in stock is $20 million Find value of output

A: The information Being given to us is as follows:- Sales = $88 million Change in stock = $20 million…

Q: How long does it take to become a millionaire? A $500,000 investment will hit $1 million in 42 years…

A:

Q: Interest Rate R Investment

A: The Keynesian economics would result in the demand side economics which determines the equilibrium…

Q: Define the term calculation of a rate of return?

A: In a specific period of time, the net gain or loss experience from an investment is known as the…

Q: Suppose Crystal Wilson wants to accumulate $1,000,000 by the time she retires in 40 years. If she…

A: Given, FV = $1,000,000  Time = 40 years  Rate of interest = 10%

Q: For a simple interest loan with interest rater (expressed as a decimal), the amount A due at the end…

A: Under simple interest, compounding is done on a fixed principal.

Q: Describe the concept of rate of return?

A: Rate of return is a rate at which investment has earned profit or suffered a loss in terms of…

Q: What is the lower present value product?

A: The present value is the current worth of a stream of future cashflows given a certain return rate.…

Q: Write the formula for the rate of return?

A: Answer - Rate of return = Rate of return is the return is profit or loss on the investment in the…

Q: The effective interest rate on a mortgage with monthly payments is 9.38%. What is the monthly…

A: The difference b/w the effective-interest rate(ER) and the nominal-rate(NR) is that the NR does not…

Q: If value of output is $550 million and sales is $500 million Calculate change in stock

A: According to the above mentioned question, the values are:- Value of output = $550 million Sales =…

Q: What do you mean by "term spread" ?

A: Different terms are used in economics or finance to indicate the difference between two prices, ask…

Q: What does the statement “interest rate 10%” signify?   a The rate is effective per year.   b The…

A: Effective Interest rate:- Effective interest rate can be explained as the actual return on the…

Q: What are the Advantages and disadvantages of Finding Rate of Return?

A: Advantages: It considers time value of money It is simple to calculate No need to find hurdle rate…

Q: What do you mean by capital recovery factor?

A: Capital recovery factor can be explained as the ratio of constant annuity and the annuity's value…

Q: Define each of the following loan terms, and explain how they are related to one another: the prime…

A: Loan: It refers to the money that people takes from banks or from friends and relatives. The more…

Q: ers to the professed interest rate.   a Nominal   b Effective   c Ordinal   d Actual

A: Professed  interest rate or stated rate is the rate that banks or lender shows the interest rate…

Q: Define the term Interest?

A: Interest refers to the amount of money that an individual gets paid for investing or lending money…

Q: How to analyze the rate of interest?

A: The interest rate is the percentage of the amount paid by the borrower to the lender in a given…

Q: Explain the concept of rate of return?

A: The rate of return, expressed in terms of percentage, can be defined as the net gain or loss on the…

Q: Using Kendall's notation, wh- Draw the rate diagram or the

A: Answer 1) Average rate of arrival = no. of shoppers incoming per hour =lembda= five customers per…

Q: Toni received a loan of $200,000 at 10% interest. The interest was deducted from the loan at the…

A: SI=P*R*T/100 where, P-Principal R-rate of interest T-time

Q: Explain how a nominal interest rate of 100% can actually be a low rate.

A: Interest rates are the cost of borrowing and saving money and are stated as a percentage of the…

Q: In how many years will an amount be doubled if the interest rate is 6%?

A: Interest rate can be defined as the percentage of the loaned amount a borrower is obliged to pay to…

Q: Define the gradient-series present-worth factor?

A: Answer:  Definition: Uniform Gradient Present Value ( UGPW) calculates the uniform gradient present…

Q: Describe what is Market interest rate?

A: The rate of interest which is determined by the interaction of demand for and supply of funds in the…

Q: What are the three components of the rate of return?

A: Rate of return is an expected annual income from an investment. It is expressed in terms of…

Q: What is a SIF?

A: A SIF is a form of Security investment fund that can invest in a variety of assets. It normally…

Q: Real interest rate is always higher than nominal interest rate  True/False

A: # The difference between Nominal interest rate and inflation rate is given as real interest rate

Q: What is the U.S 6 month interest rate?

A: In the mentioned question we have been asked about the 6-month interest rate of the U.S.

Q: Is rate of retur the same as interest rate?

A: The difference between interest rate and rate of return is mainly based on the nature. Rate of…

Q: In India what are the goods or services which do not comes under GST

A: GST stands for Goods and service taxes, in India it is effective from 1 July 2017. There are five…

Q: What is Intangible property? Give some examples?

A: The assets or the properties are the resources owned by the firm in order to generate revenue. It…

Q: Describe the different ways to determine the rate of return?

A: Investment Return: The term investment return refers to the yield of the investment. For example, if…

Q: The only kind of interest rate that can be used in the interest formulas is: A simple rate A nominal…

A: Simple Interest:- This is a way for estimating the level of interest imposed on an amount over a…

Q: Bobby took out a single loan for $500 and paid a $50 fee. His loan is due in 1 week. Find the…

A: Here, given information is; Principal amount: $500 Interest amount: $50 Time period: 1 week To…

Q: Explain Return on Invested Capital?

A: Return on Invested Capital (ROIC) is a profitability or performance ratio which aims to measure a…

Q: What refers to the ratio of the interest payment to the principal for a given unit of time and…

A: For the production and consumption of goods, economic agents have derived a barter system. In the…

Q: Is it possible for the nominal interest rate to be negative? Why or whynot?

A: Nominal Interest Rates are those interest rates which prevailed in an economy in a particular period…

Q: What is the present value of $100 one year from now if the interest rate is 10%? What is the present…

A: Interest rate: It refers to the rate at which the debtor has to pay the amount with the interest…

Q: What are the benefit and disadvantages of A working capital loan ?

A:

Q: What is meant by Prime interest rate?

A: Prime Interest Rate is the interest rate which is determined by the federal funds rate.