What does the interest rate measure?

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: Interest rates increase.

A: The market in which the aggregate demand curve and aggregate supply curve interact to determine the…

Q: Jenny wishes to double her financial fund and the bank gives her 8% rate of interest annually, how…

A: Here, Jenny deposited its money in a financial funds at the annual interest rate of 8% and she wants…

Q: What is private saving?

A: Private savings are the amount left with the household after spending money on taxes and…

Q: what is an investment for?

A: The word "capital formation" refers to a country's net capital accumulation over a specific…

Q: what is credit or default spread?

A: The yield on Bonds: Yield is the income generated from the buying of bonds. For example, a…

Q: What is the difference between Market and Inflation-Free Interest Rates?

A: Market and inflation free interest rate are entirely different concepts. Market is the place that…

Q: Interest Rate R Investment

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

Q: What is the Sinking-Fund Factor?

A: The sinking fund factor is the calculation that tells the investor how much of an annuity payment…

Q: If an interest rate pays 9% five times a year, calculate the effective rate of interest. please with…

A: Interest rate is the interest charged to the borrower by the person who makes the loan, calculated…

Q: What is Effective interest?

A: Effective interest rate can be described as the interest rate gained or paid in actual on a project.…

Q: Greg wants to have $50 000 in five years. He has $20 000 today to invest. The bank is offering…

A: Interest rate per quarter (i) can be calculated as follows. ...

Q: Distinguish between the present worth of cash and future worth of cash?

A: Present worth of cash : Meaning : It is defined as the current value of future or future value.…

Q: What are Nominal Interest Rates?

A: Inflation refers to a continuous increase in the price of any commodity and service in the economy…

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: Distinguish between Simple interest and Compound Interest?

A: Interest rate refers to the percentage of a principal amount charged by a lender to a borrower.

Q: Summarizes some of the interest formulas?

A: Simple interest = (P*R*T)/100 where, P : Principal amount            R : Rate of interest per annum…

Q: Explain Methods of Calculating Interest?

A: Answer -  Interest = It is the extra amount of money a lender which charge to a borrowers.  there…

Q: what is the 4 factor that affects the level of interest rate? and how does each one work?

A: The cost of lending money is represented by an interest rate. On the other hand, it is a reward for…

Q: When is the simple interest scheme used?

A: Simple interest is a method which is used to calculate interest charged on fixed deposit, loan and…

Q: Explain time and interest rate effect on future value?

A: Interest rate: It is the rate of earning in a specific time period on the investment.

Q: Write the Elements of Transactions involving interest?

A: Interest is the payment that is made to the lender by the borrower of an amount in addition to the…

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: Retired persons often have much of their wealth placedin savings accounts and other interest-bearing…

A: Real interest rate refers to the interest rate that subtracts the inflation rate from the nominal…

Q: Why is investment is a better option other than savings?

A: The income remaining from the consumption expenditure is termed as the saving of the people. It can…

Q: What does the interest rate you determine represent?

A: The interest is a specific percentage of the principal amount that is lent, borrowed, or deposited…

Q: Calculate the value of APS if Savings is $320 million and income is $420 million

A: The information being given to us is as follows:- Savings = $320 million Income = $420 million We…

Q: What is the discount bond?

A: A bond is a financial instrument that specifies the financial obligation of the bond issuer to the…

Q: Give an example of an Interest Transaction?

A: Interest transaction would be any transaction which is associated with any kind of interest or…

Q: Explain what is Principal Plus Interest?

A: Principal plus interest is that amount which is paid by the borrower to the lender after the agreed…

Q: Write the Summary of Compound-Interest Formulas?

A: Answer - Compound-Interest Formula - Compound interest formula helps to calculate the total return…

Q: You hold a two-period bond that pays a coupon  at the end of each period. The interest rate is…

A: Holding a two-period bond, that pays a coupon at the end of each period with an interest rate of…

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: What is a bond?

A: Bonds are fixed income securities and acts as a loan to a borrower. It is a kind of contractual…

Q: How is an Effective Interest Rate calculated?

A: The effective rate of interest is an important concept in economics.  The effective rate of interest…

Q: Which Interest rate is better to use the simple interest or compounded interest plan, explain your…

A: The interest rate is the amount charged on the principal by the borrower to the borrower to use the…

Q: What is the Times-Interest-Earned Ratio?

A: Times interest earned (TIE) ratio measures the ability of company to meet its debt obligations based…

Q: Causes and effects of low interest rates

A: The interest rate is determined by the intersection of demand and supply of loanable funds. It is…

Q: What are objectives on interest rate spread

A: When talking about interest rate spread, it is considered as the difference in the interest rate…

Q: What is the meaning of interest rate

A: Financial institutions play an important role in an economy. They collect money from people who have…

Q: When the interest rate rises, bond values

A: GIVEN   the interest rate raise,bond values is

Q: What is meant by Prime interest rate?

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