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Marat540 [252]
4 years ago
12

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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The three key functions of sensation are, respectively, _____.
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3 years ago
External decision makers would not look primarily to financial accounting information to assist them in making decisions on:
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External decision makers would not look primarily to financial accounting information to assist them in making decisions on  Capital budgeting.

<h3>What is Capital budgeting?</h3>

Capital budgeting is known to be the act or process where a business does examine their potential major projects or their investments.

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4 0
2 years ago
At the beginning of the year, morales company had total assets of $845,000 and total liabilities of $532,000. (treat each item i
mezya [45]

Calculation of amount of stockholders' equity at the end of the year;


We can calculate the amount of stockholders' equity at the end of the year with the help of following formula:

Stockholders' equity at the end of the year = Total Assets at the end of the year – Total Liabilities at the end of the year

At the beginning of the year, Morales Company had total assets of $845,000 and total assets increased $150,000 during the year. Hence Total Assets at the end of the year shall be (845000+150000) = $995,000


At the beginning of the year, Morales Company had total liabilities of $532,000 and total liabilities decreased $75,000 during the year. Hence Total Liabilities at the end of the year shall be (532000-75000) = $457,000


Now we can calculate:

Stockholders' equity at the end of the year = Total Assets at the end of the year – Total Liabilities at the end of the year

= 995000-457000 = $538,000


Hence, Stockholders' equity at the end of the year is <u>$538,000</u>













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3 years ago
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