A fee paid by a borrower to the lender for the use of borrowed money; typically interest is calculated as a percentage of the principal (original loan amount). A debt evidenced by a "note," which specifies the principal amount, interest rate and date of repayment.
Answer:
Invest at a minimum of 7.5% annual simple interest
Explanation:
Given the goal of purchasing a boat that will cost $30,000 in 20 years, David needs to earn an interest computed below on his investment in the savings account.
Interest required = 30,000 - 12,000
= 18,000
Therefore the minimum rate of interest that will achieve this goal,
= Principal * rate * time = target amount
= 12,000 * R * 20 years = 18,000
= R = 18,000/(12,000*20) = 0.075 = 7.5%.
In addition, David could also continue his saving from his teaching job. This will reduce the minimum investment return required to achieve the goal.
The correct answer is C,
A good is said to have an inelastic supply if the suppliers did not have any choice than producing it even though the cost of production is high and the buyers did not have any choice than buying it even though it is expensive.
No one can do without shoes, even if they are expensive, we still need to buy them.
Answer:
B. Persons on fixed incomes.
Explanation:
Inflation is a general increase in prices and fall in the purchasing value of money, therefore, a person with a fixed income will not be affected.
C. the attitude of the people working at a company
