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3 years ago

Why is it important to have a high intrest rate for an investment and a low one for a loan?

Business

1 answer:

Anna [14]3 years ago

7 0

Answer:

Explanation:

Investment is an act of setting some amount side to grow and accumulate in the nearest future .. Investment is quite different from savings so Higher interest rate on investment is very important because tends to act as an aiding factor in letting such investment yield a lot of profit and grow.

While loan on the other hand is debt borrowed that has not been paid back, people lend money for so many reasons and they do this because they don't enough capital so they source for external fund, but in the situation where interest rate accrued on loan is high, then it will be difficult for such individual to pay back because this will increase the money that has to be paid back.

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Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the

yKpoI14uk [10]

Answer:

Product A Product B Product C

Sales value after further processing $494,940 $656,030 $248,820

(14,600*$33.90), (22,700*$28.90),

(5,800*$42.90)

Costs of further processing $91,990 $133,305 $62,660

Benefits of further processing $402,950 $522,725 $186,160

Less: Sales value at split-off point $408,800 $499,400 $197,200

(14,600*$28.00), (22,700*$22.00),

(5,800*$34.00)

Net advantage / (Disadvantage) $(5,850) $23,325 $(11,040)

6 0

2 years ago

One example of a primary market transaction would be the: sale of 100 shares of stock by maria to her best friend. purchase by t

Korolek [52]

In the primary market investors buy securities directly from the company issuing them while the secondary market, investors trade securities among themselves, and the company with the security being traded does not participate in the transaction. Therefore, an example of a primary market transaction would be the sale of 1000 shares of newly issued stock by Alt Company to Miquel.

8 0

3 years ago

Assume the price of gasoline doubles tonight and remains at that price the next two years. The price elasticity of demand for ga

enyata [817]

Answer:

The correct answer is letter "D": more inelastic.

Explanation:

When its price changes, the supply, and demand for an inelastic good or service are not dramatically impacted. Whether the price of an inelastic product goes up or down, the buying habits of consumers remain roughly the same. Prescription drugs, food, clothing, and gasoline are common examples of inelastic goods.

Thus, if the price of gasoline doubles tonight, that price would be considered more inelastic tomorrow compared to the current price until today than comparing the doubled price during the course of the upcoming two years.

6 0

3 years ago

Java Jane's first coffeehouse was very successful due to the unique flavors, on-site baked goods, and inviting ambiance. The own

Basile [38]

Answer:

A contractual marketing system

Explanation:

Java Jane's most likely adopted a contractual marketing system.The contractual system is a vertical marketing system in which all the companies involved tend to work independently as individual entities. Regardless of working independently, they also work together to achieve greater goals and efficiencies.

They are also known as value-added partnerships since they work hand in hand to create value for other entities that are involved

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3 years ago

the regulatory cycle provides an opportunity for self-regulation during the latency stage. group of answer choices true false

Semmy [17]

The regulatory cycle provides an opportunity for self-regulation during the latency stage. The statement is False.

<h3>What is the latency stage?</h3>

The latency stage will last for six years until puberty. This is referred to as the fourth stage of psychosexual development. No additional psychosexual growth happens at this stage since the desire is inactive.

A phase of discovery during which the reproductive energy is restricted or inactive is known as the latent period. This power is still there, but it has been transferred to other activities like learning and networking and plays a crucial role.

Therefore, the statement is False.

Learn more about the latency stage, here:

brainly.com/question/4123860

#SPJ4

5 0

1 year ago

Why is it important to have a high intrest rate for an investment and a low one for a loan?​

Why is it important to have a high intrest rate for an investment and a low one for a loan?