When interest rates are high, then the consumers have a greater incentive to save more, but when interest rates are low, consumer have a greater incentive to borrow more.
<h3>What is Interest Rate? </h3>
This refers to the charge which is given for a particular loan which is replayed after a certain time.
With this in mind, high interest rates are not appealing to customers so they rather save and then borrow when the interest rates are low.
Read more about interest rates here:
Answer: Price after 1 year = $24.83
Explanation:
Return = [D1/P0 ]+ g
= [(3*1.08)/23] + 0.08
= 22.09%
We assume the return is same for next year as well.
Thus,
r = [D2/P1] + g
22.09% = (3*1.082/P1) + 8%
P1 = $24.83
<u>Thus, price after 1 year is $24.83</u>
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Answer: Definition the problem.
Explanation:
In trying to solve a problem, the first and the most basic step to take is to identify or define the problem, this stage involves determining the circumstances and situation as it helps one to be focused and pay attention to what the real problem is.
It is the first step and the most important, although it is most times difficult.
Defining the problem must answer the question "why", "who", "where","what", "how" and "when".
Defining the problem helps one to gain control over the situation.
Answer:
huh.............................................................................................
Answer:
The responses to the given choices can be defined as follows:
Explanation:
Assume is the investment. Each original Class A investment is of the net-front unburden. The portfolio will be worth four years from now:
You will place the total of
on class B shares, but only
will be paid
at a rate of
and you'll pay a
back-end load charge if you sell for a four-year period.
After 4 years, your portfolio worth would be:
Their portfolio worth would be: after charging the backend load fee:

When the horizon is four years, class B shares are also the best option.
Class A shares would value from a 12-year time frame:

In this case, no back-end load is required for Class B securities as the horizon is larger than 5 years.
Its value of the class B shares, therefore, is as follows:

Class B shares aren't any longer a valid option in this, prolonged duration. Its impact on class B fees of
cumulates over a period and eventually outweighs the
the burden of class A shareholders.