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2 years ago

Interest rates are expressed as a percentage of

Business

2 answers:

kvasek [131]2 years ago

8 0

Interest rates are expressed as a percentage of<u> loans</u>.

Interest rates is expressed as a percentage of the principal amount, that is, the money borrowed in form of loan, or money deposited.

<h2>Further Explanation </h2>

The money borrowed from a financial institution in form of a loan attracts an interest which is expressed as a percentage of the principal amount borrowed.
Interest is therefore the amount of money charged by a financial institutions such as banks or Sacco’s on money borrowed from them by customers.
Interest is expressed as a percentage of the principal amount borrowed from these financial institutions.
Furthermore, money deposited to financial institutions by customers for longer terms may earn them interest depending on the type of account the customer holds with the lending institutions.
Fixed deposit accounts for example earns an interest to the customer for any money deposited within a given period of time.

<h3>Types of Interest on Loans </h3><h3>Simple interest </h3>

This is a type of interest which is a set rate on the principle amount lent to the borrower, such that the borrower pays for the privilege of borrowing money.
For example, if an individual borrowed $ 1000, on simple interest at a rate of 10% per annum, for a period of two years, then the customer would pay $200 interest at the end of two years plus the principle borrowed, which totals to $1200.

<h3>Compound interest. </h3>

Compound interest is the interest charged on both the principle and the accumulating interest charged on the amount borrowed. Compound interest is the most common type of interest with money lending institutions.
Therefore, if an individual borrowed $ 1000 and charged compound interest at a rate of 10% per annum, for a period of two years, then the customer would pay a total amount of $ 1210 at the end of two years.

Keywords: Interest, interest rate, loans

<h2>Learn more about; </h2>

Compound interest formula: brainly.com/question/10184698
Simple interest formula: brainly.com/question/12164462
Interest rate calculation: brainly.com/question/3256069

Level: High school

Subject: Business

Topic: Simple and compound interest

Sub-topic: Interest rates

Tomtit [17]2 years ago

6 0

Basically, an interest rate is an amount that is added on top of the principal amount most especially in loans. This is expressed in a form of percentage, depending on the amount and interest rate being agreed upon. The answer for this would be the second option. Hope this helps.

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Exchange rates are an effective way to analyze the price of one currency in terms of another currency with _____________________

nalin [4]

Exchange rates are an effective way to analyze the price of one currency in terms of another currency with the tools of demand and supply.

<h3>What do you mean by exchange rate?</h3>

Exchange rates refer to the value of one's nation's currency over the currency of another nation.

An exchange rate can be fixed or free-floating. A fixed exchange rate is pegged to the value of other currency and a free-floating exchange rate may rise or fall due to changes in the foreign exchange market.

Thus, exchange rates are an effective way to analyze the price of one currency in terms of another currency with the tools of demand and supply.

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2 years ago

The Smiths are purchasing a completely furnished cottage on a lake. They have obtained a deed of trust loan to cover the price o

Pachacha [2.7K]

The type of financing that includes the purchasing of furnished cottage on a lake with the full deed is called as a package deed of trust

Explanation:

Package deed of trust will involve the third party and they will serve as the trustee in between the lender and the borrower and the property will be in the hands of the trustee until the lender pay off the the loan

This will transferred with the legal property and they will hold the security loan and it will be made equitable and the title will remain with the borrower until they pay of the money

8 0

3 years ago

An investor with no other positions buys 1 dwq jun 60 call at 3.50. if the investor exercises the call when the stock is trading

miskamm [114]

Answer: $450 profit
The investor exercised the right to buy the stock for 60 and can sell the stock in the market for 68 for an $8 per-share gain.
The gain of 8 minus the premium of 3.50 gives the investor a profit of 4.50
(4.50 Ă— 100 = $450).

6 0

3 years ago

The owner of an orange grove must decide when to pick one variety of oranges. She can sell them for $27 a bushel if she sells th

uysha [10]

Answer:

The oranges should be picked in 2 weeks for maximum return

Explanation:

We assume that the return of the owner is y ($)

Assume that the number of weeks the oranges should be picked to have maximum return is x (weeks). (x≥0)

If collect now, the price for each bushel is $27

As the price per bushel decrease by $1.50 per bushel each week

=> After x weeks, the price of a bushel decrease: 1.5x ($)

=> The price of 1 bushel after x weeks is: 27 - 1.5x ($)

If collect now, each tree can yield 7 bushels

As the yield increases by half a bushel per week for the next 5 weeks

=> After x weeks with x ≤ 5, each trees would yields: 7 + 0.5x (bushels)

The return = The price of each bushes × The quantity of bushels

=> $y = (27-1.5x)(7+0.5x)$

⇔ $y= 27 (7 +0.5x) - 1.5x(7+0.5x) = 189 + 13.5x - 10.5x - 0.75x^{2}$

⇔ $y = -0.75x^{2} +3x +189$

We have: if the equation has the form of $y =ax^{2} +bx +c$ with a≠0, its maximum value is: $max y = c - \frac{b^{2} }{4a}$

In the equation $y = -0.75x^{2} +3x +189$ , we have: a = -0.75; b = 3; c = 189

=> $max y = c -\frac{b^{2} }{4a} = 189 - \frac{3^{2} }{4.(-0.75)} = 189 - \frac{9}{-3} = 189 - (-3) = 189+3 = 192$

To look for the number of weeks, we should find x (0≤x≤5) with which y = 192

$192 = -0.75x^{2} +3x +189$

⇔ $-0.75x^{2} + 3x + 189 - 192 = 0$

⇔ $-0.75 x^{2} + 3x - 3 =0$

⇔ $-0.75x^{2} + 4*0.75x - 0.75*4 =0$

⇔ $x^{2} -4x + 4 = 0$

⇔ $(x-2)^{2} = 0$

⇔ x = 2

The oranges should be picked in 2 weeks for maximum return

7 0

3 years ago

When the interest rate in an economy increases, it is likely the result of either: an increase in the government budget surplus

SIZIF [17.4K]

Answer: c). a decrease in the government's budget surplus or an increase in its budget deficit.

Explanation: Budget surplus refers to the excess of government revenue from taxes and other sources over its expenditure. While, budget deficit refers to the excess of government expenditures over its revenue.

BS= T>G

BD= G>T

A decrease in the government's budget surplus or an increase in its budget deficit leads to an increase in the interest rate in the economy. Thus the correct option is c.

5 0

3 years ago