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3 years ago

What is interest rate and business decision?

Business

2 answers:

Sophie [7]3 years ago

6 0

Answer:

An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed. The business decision-making process is a step-by-step process allowing professionals to solve problems by weighing evidence, examining alternatives, and choosing a path from there.

Explanation:

alexandr1967 [171]3 years ago

5 0

Answer:

Interest rate is the proportion of any loan that's charged as an interest to the borrower.

Business decision is the process through which professionals solve problems regarding any kind of business.

Explanation

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If a public offering of new stock is initially priced too high relative to market demand, the result would be a:_________

Vika [28.1K]

If a public offering of new stock is initially priced too high relative to market demand, the result would be a surplus of shares which will cause prices to fall.

This is because the initial price of a new inventory is just too high relative to market demand, which means, overpriced. Then human beings will not buy those stocks because of the high charge. As an end result, there might be less call for than supply, which reasons downward pressure on the price of the shares.

Market demand is how an awful lot of consumers want a product for a given period of time. Market demand is determined by a few elements, such as the number of human beings looking for your product, how awful lot they're willing to pay for it, and what sort of your product is to be had by consumers, each from your business enterprise and your competitors.

Market demand influences organizations and consumers alike by means of figuring out manufacturing and assisting with manual opposition within the marketplace. It's miles essential for organizations to be privy to the market demand to help layout, create and advertise services and products to customers if you want to meet demand.

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8 0

1 year ago

ou read in a newspaper that the nominal interest rate is 12 percent per year in canada and 8 percent per year in the u.s. suppos

diamong [38]

The real interest rate in US and Canada are same.

As inflation in Canada is higher, its value will depreciate again the US dollar.

This scheme actually loses money as the amount of loan to be returned is 1.08 USD

a. Using Fisher's equation,

nominal interest rate ~ real interest rate + inflation.

real interest rate = nominal interest rate - inflation

Thus, as the real interest rate in US and Canada are same,

Nominal rate Canada - Inflation Canada = Nominal Rate US - Inflation US

12% - inflation Canada = 8% - Inflation US

Inflation Canada = 4% + Inflation US

Thus inflation in Canada will be 4% higher than in US

b. As inflation in Canada is higher, its value will depreciate again the US dollar. i.e the US dollar will get stronger and Canadian dollar will get weak. The change in the value will be 4%.

Let 1 USD = 1 CAD and amount borrowed be $1 in US for a year.

Amount payable in US after 1 year = $1 * (1 + 8%) = $1.08

Amount converted to CAD = CAD 1

Amount in CAD after 1 year = CAD 1*(1+12%) = CAD 1.12

New Exchange rate after 1 year = 1 * (1 + 4%) = 1.04 i.e 1 USD = 1.04 CAD (i.e USD costs more in CAD)

Amount in USD converted from CAD = 1.12/1.04 = 1.0769 ~ 1.077 USD

Thus, this scheme actually loses money as the amount of loan to be returned is 1.08 USD which is more than 1.077USD earned from CAD interest rates. (This is even without considering the exchange rate transaction fees etc.)

The interest rate is the quantity a lender prices a borrower and is a percentage of the essential—the quantity loaned. The hobby charge on a mortgage is typically referred to on an annual foundation referred to as the annual percentage charge (APR).

An interest rate is the amount of interest due in step with length, as a proportion of the quantity lent, deposited, or borrowed. the entire interest on an quantity lent or borrowed depends on the main sum, the hobby price, the compounding frequency, and the duration of time over which it's far lent, deposited, or borrowed.

An interest rate tells you ways high the price of borrowing is, or excessive the rewards are for saving. So, if you're a borrower, the hobby price is the quantity you're charged for borrowing money, proven as a percentage of the total quantity of the loan.

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4 0

1 year ago

Which of the following is a way to make your mission statement the best it can be?

NeX [460]

Revise the mission statement as conditions change and the business climate evolves.

3 0

3 years ago

Dieter is a debtor to Maxwell, the secured party. Dieter lives in Ohio and works in Kentucky. Maxwell lives in Indiana and works

Svetllana [295]

Answer:

The correct answer is C) Indiana

Explanation:

To completely secure a secured transaction, or perfect the security, the secured party (in this case Maxwell) should file a financing statement with the local public records office, Secretary of State, or other appropriate government body.

The area that is local to Maxwell is where he lives which is Indiana.

Cheers!

7 0

3 years ago

Read 2 more answers

Miranda is an executive for a company that manufactures dental tools. Her company prefers to measure progress by what percentage

kvv77 [185]

Answer: Market Share

Explanation:

Market Share is the the percentage of the total market that a business or a product controls.

For a company, it is the ratio of the company's total sales to the total sales of the industry it operates in. For example, if Miranda's company made a total sales of $10 million and the dental tool market is worth $100 million, Miranda's company controls 10% of the market and has 10% market share.

7 0

2 years ago

What is interest rate and business decision?​

What is interest rate and business decision?