3 years ago

Why is a high-quality bond typically considered a lower risk investment than a stock?

1 answer:

5 0

A high-quality bond is typically considered a lower-risk investment than a stock because a bond typically pays a fixed, predictable amount of interest each year.

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3 years ago

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What is the rate of interest on a loan of $2,000, for 284 days, if the amount of interest is $93.37, using the exact interest me

vesna_86 [32]

Exact interest method is using 365 days instead of 360.

We are going to use the formula: I = Prt, we will derived the formula of rate.

r = I /Pt would be our formula, plugging in our amounts.

r = 93.37 / 2000 / (284/365)

= 93.37 / 2000 (0.7781)

= 93.37 / 1556.1643

= 0.06 or 6% when converted to percent.

To check:

I = Prt

= 2000 x 0.06 x 284/365

= 120 x 0.7781

= 93.37

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13. Which of the following is NOT used to describe the state of an economy?

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Explanation:

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