What factors affect the time value of money and the cost of borrowing money?

1 answer:

5 0

1.Interest rates
The interest rate level is moved higher or lower by a country's central bank to either stimulate or slow down an economy. Higher interest rates impose a more costly fee to borrow money while lower interest rates lessen the fee and usually spur more borrowing

2.Economic growth
The strength of an economy can go a long way to boosting the strength of the nation's currency. A strong growth rate in a country will see a growing demand for products and services with better job prospects for workers as well as being an attractive destination for capital and investments.

3.Inflation
When a product rises in price, it signals that there is an underlying demand for that product. Higher prices may not seem good to a consumer, but it is generally considered healthy for a country to have a moderate increase in inflation in a growing economy.

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Ming is a manager for a large foodservice company. She has the authority to determine whether or not the company should expand i

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Answer:

Strategic

Explanation:

If Ming is a manager for a large company and has the authority to determine whether or not the company should expand into new regions and/or expand the company's product line, Then the level of management that Ming represents is Strategic Management

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Business expansion decisions are taken by the highest level of management based on their analysis of the competitive environment

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Which is the During the last stage of the purchase decision process, known as ________, a consumer compares a purchased product

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Answer:

Post-purchase behavior

Explanation:

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3 years ago

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On August 1, Ernie wrote to Elsie offering to sell Elsie his car for $7,600, and he promised to hold the offer open for ten days

Daniel [21]

Answer:

Yes, the contract is still valid.

Explanation:

Let us first clarify some terms first.

A contract is referred to as a legally binding agreement that is recognized, known and governs the rights and duties of the parties involved in an agreement. A contract is legally enforceable because it meets the features and approval of the law. An agreement basically involves the exchange of goods, transactions, services, money, or promises. In the case of breach of contract, the law awards the injured party access to legal remedies which include damages and cancellation.

Letter of revocation is an act by which a person having authority, calls back or in other words annuls a power, gift, or benefit, which had been bestowed upon another.

Yes, the contract still holds. This is due to the reason that the letter had a date mentioned on it which is August 4, a day before the contract was accepted even though the revocation letter arrived late.

Therefore, as regards to the date on the letter, the contract is still valid.

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3 years ago

Jessica Adams is 21 years old and has just graduated from college. In considering the retirement investing options available at

Marina CMI [18]

Answer:

The summary as per the given query is summarized in the explanation section below..

Explanation:

The given values are:

The nominal rate of return,

= 7%

i.e.,

= 0.07

Inflation,

= 4%

i.e.,

= 0.04

Lengthy-term inflation would lessen the return on investment that lowers the net return as long-term investments are made.
It can also aim to obtain a higher return that will comfortably exceed the rate of inflation and therefore is beneficial towards diminishing the average return.

Now,

The rate of return will be:

= $(\frac{1+ nominal \ rate \ of \ return}{1+Inflation}) -1$