Inflation is the economic condition in which the interest rate keeps increasing which is beneficial for the lenders. But not a fixed rate lender.
<h3 /><h3>What is Interest Rate?</h3>
Interest rate is the prevailing market rate which the lender of the money gets in return for the money provided as a loan.
If there is a fixed interest contract the lender will get the same percentage of return for the duration of contract, no matter the fluctuation of the interest rate in the market. This is not beneficial when the economy is facing inflation. As whatever be the rate in the market (definitely higher) the lender will get the same percentage of return.
However if there is a variable rate contract the rate is updated and the lender is paid at the updated interest rate. This is beneficial when the economy is facing inflation.
Learn more about interest rates at brainly.com/question/28142837
#SPJ1
Answer:
Compounding formula would be used here which is as under:
Future Value = Present value * (1+r)^n
FV = (PV is $2000) * ( 1 + 4%)^ 3 number of years
Remember that r is the return that is 4% that Sarah Jones will receive.
So
FV = $2250
So this is the amount that she will receive after three years. I would recommend her to invest in ordinary shares (take higher risk for higher return) so that she is able to buy a better car.
Answer:
Option D
To me, I think option D is the most preferred answer
Answer:
The correct answers are: greater than; less than.
Explanation:
In the perfect competition model, the nature of the scale returns poses serious problems, whatever the case considered. Sise assumes that the returns of scale are increasing, the supply of companies is infinite; if they are constant, the offer is null, infinite or indeterminate (equilibrium case); if they are decreasing, the profit of the companies is strictly positive in the balance '. In the latter case, if they could do so, companies would be interested in dividing themselves, without any limit, into entities as small as possible.
Answer:
Interest expense accured = $121.33 (
Explanation:
The exact number of days from July 2 through December 31, 2013 is 182 days.
The accrued interest (182/360) x $4,000 x 6% = $121.33
