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4 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]4 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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McDonald’s marketing of its Happy Meal to children to be unethical?

o-na [289]

Answer:

Explanation:

No kids get excited to get a little toy with their happy meal, and customers will willingly pay for it. it's not doing any harm, so I don't see why it would be unethical. I guess you could say that it's promoting unhealthy food but children can't buy their own food, so it would be up to the parents decision anyways.

7 0

3 years ago

Ag-Coop is a large farm cooperative with a number of agriculture-related manufacturing and service divisions. As a cooperative,

Anon25 [30]

Answer:

See complete solution in the picture attachment.

Explanation:

8 0

3 years ago

Wooderson Company sells many products. Gizmo is one of its popular items. Below is an analysis of the inventory purchases and sa

tankabanditka [31]

Answer:

FIFO COST OF GOODS SOLD$ 239,200

b) Weighted Average Inventory $ 6120

c) LIFO Ending Inventory = $ 5000

Explanation:

Wooderson Company

Periodic inventory system

Units Unit Cost Total Cost

3/1 Beginning inventory 100 $40 $ 4000

3/3 Purchase 60 $50 $ 3000

3/4 Sales 60 $80 $ 4800

3/10 Purchase 200 $55 $ 11000

3/16 Sales 70 $90 $ 6300

3/19 Sales 90 $90 $ 8100

3/25 Sales 60 $90 $ 5400

3/30 Purchase 40 $60 $ 2400

Sales = $ 4800 + $ 6300 + $ 8100 + $ 5400= $ 246,000

Ending Inventory= 120 units

FIFO Ending Inventory= $ 6800

40 units at $60 = $ 2400

80 units at $55 = $ 4400

FIFO COST OF GOODS SOLD= SALES Less FIFO Ending Inventory

= $ 246,000- $ 6800= $ 239,200

b) Weighted Average Inventory= (Total Cost / Total Units) Ending Units= (20,400/ 400) * 120 = $ 6120

c) LIFO Ending Inventory = $ 5000

100 units at $40 = $ 4000

20 units at $ 50= $ 1000

3 0

3 years ago

Why is the savings account better than a checking’s account for saving money?

Lisa [10]

Because it pays a higher rate of interest.

A savings account is better than a checking account for saving money because they normally pay a higher interest rate than a checking account. Quite often, a checking account will not pay any interest at all.

7 0

4 years ago

Stella is currently spending all of her weekly income purchasing the two goods that she likes cookies and milk. She is currently

Ivan

Answer:

Stella should consume less of milk and more of cookies to maximize total utility.

Explanation:

The price of cookies is $9, and the price of milk is $3.

Stella consumes 10 cookies and 5 cartons of milk.

The marginal utility of 10th cookie is 50 utils and the marginal utility of 5th carton of milk is 25 utils.

Her total utility will be maximized if the ratio of marginal utility and price will be equal for both cookies and milk.

Ratio for cookies

= $\frac{MUx}{Px}$

= $\frac{50}{9}$

= 5.55

Ratio for milk

= $\frac{MUy}{Py}$

= $\frac{25}{3}$

= 8.33

Since the ratio is higher for milk, it means that Stella should consume less of milk and more of cookies to maximize total utility.

8 0

3 years 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?