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.
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