Q: Interest earned with an annuity due is higher than that with an ordinary annuity. Do you agree or…
A: An annuity is a series of payments paid or received over a defined length of time. The timing of the…
Q: Which financial Market do Retail credit products e.g. Mortgage bonds, short term loans, long term…
A: Meaning of Financial Assets: The term financial assets refer to the situation, under which these…
Q: Define interest and explain how interest rates vary based on risk, maturity, loan size, and…
A: The interest rate is the return that an individual receives from the financial asset in the economy.…
Q: Give an example of a loan repayment plan?
A: A loan repayment plan shows the way in which loan will be repaid. It explains in detail the number…
Q: What is private saving?
A: Private savings are the amount left with the household after spending money on taxes and…
Q: What is the effect of continuous increase in savings on loanable funds market?
A: A market interest rate theory known as the loanable funds doctrine. The interest rate is set by the…
Q: Write the formula developed for calculating compound interest?
A: Compound interest refers to the interest calculated on the principle amount, thus increasing the…
Q: what happens when interest rate rises?
A: In an economy interest rate plays an important role to determine economic growth and inflation rate.…
Q: What is the lower present value product?
A: The present value is the current worth of a stream of future cashflows given a certain return rate.…
Q: Summarizes some of the interest formulas?
A: Simple interest = (P*R*T)/100 where, P : Principal amount R : Rate of interest per annum…
Q: When is the simple interest scheme used?
A: Simple interest is a method which is used to calculate interest charged on fixed deposit, loan and…
Q: Banks extend many fixed-rate loans. Why? A farmer buys machinery with a fixed - rate loan to be…
A: Dear student, you have asked multiple sub-part questions in a single post. In such a case, I will be…
Q: still make all interest payments? r
A: *Answer: The debt-to-GDP ratio is the percentage of a country's debt to its GDP. It is used to…
Q: How much money will you have in seven yearsif you deposit $7,000 in the bank at 8.5%…
A: Compound interest rate is addition to the interest of interest. It can be applicable both loan and…
Q: If the interest rate is zero, then $100 to be paid in10 years has a present value that isa. less…
A: The present value refers to the today’s value of the future amount that adjusted with the existing…
Q: Interest rates: why are interest rates increasing on student loans or mortgages?
A: Secured Loan:- A secured loan is one that is supported by secured financial assets owned by the…
Q: What are the two types of interest rates used in equivalence calculations?
A: Equivalence calculation is the calculation of interest rate received for an investment at the end of…
Q: Retired persons often have much of their wealth placedin savings accounts and other interest-bearing…
A: Real interest rate refers to the interest rate that subtracts the inflation rate from the nominal…
Q: Describe what is Market interest rate?
A: The rate of interest which is determined by the interaction of demand for and supply of funds in the…
Q: You are interested in buying a piece of real estate property that could be worth $450,000 in five…
A: Real Estate that could be worth $ 450,000 in 5 years. Earning Interest rate is 5%. So we are willing…
Q: Write the formula of Effective interest?
A:
Q: How to convert daily interest rate into monthly interest rate?
A: Calculating the annual equivalent of a daily charge or per diem interest, or compounding annual…
Q: How can we calculating effective Interest Rates based on Payment Periods?
A: The effective annual interest rate is the interest rate on investment or return on a savings account…
Q: 43) Which is a term that would be included in a bond indenture? a) Interest rate b) Dividend c)…
A: Since you have asked multiple questions, we will solve the first question (Q#43) for you. If you…
Q: f you deposit $10000 into a fund paying interest 6%. How much you get after one yea
A: Given the deposit amount = $10000 Interest rate = 6%
Q: What is the Deferred Savings Plan?
A: A deferred savings plan is a plan which allows the taxpayer to pay money in the plan and then…
Q: Differentiate between Simple interest and Compound interest?
A: In economics, interests are the costs of borrowing money. The economic agent who is borrowing the…
Q: What is Compound interest?
A: Simple Interest: The simple interest is the interest that is paid on the principal amount. For…
Q: What is the maturity date of a loan taken out on September 9, 1998 for 125 days?
A: The loan is taken out on September 9, 1998, for 125 days So maturity date of this loan will be 125…
Q: Write the Summary of Compound-Interest Formulas?
A: Answer - Compound-Interest Formula - Compound interest formula helps to calculate the total return…
Q: Define Purchase of Investment.
A: An investment is the purchase of products, the main purpose for which is to have gains. They are not…
Q: Explain with detail about interest rate deposit facility and lending facility
A: Answer-
Q: How is an Effective Interest Rate calculated?
A: The effective rate of interest is an important concept in economics. The effective rate of interest…
Q: Which Interest rate is better to use the simple interest or compounded interest plan, explain your…
A: The interest rate is the amount charged on the principal by the borrower to the borrower to use the…
Q: Define interest rate.
A: The price paid by the lender for the use of assets expressed as a percentage of the principal is…
Q: What does the interest rate measure?
A: Market interest rate refers to the interest rate that the lenders expect or demands from the…
Q: Causes and effects of low interest rates
A: The interest rate is determined by the intersection of demand and supply of loanable funds. It is…
Q: You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you…
A: Annual Payments refers to the (x) the total amount of payments anticipated to be paid or received,…
Q: years from now at an interest rate of
A:
Q: Which factors affect the yield to maturity (or return on investment?
A: Yield to Maturity provides a benchmark for evaluation of different types of investment instruments.
Q: b. How much can Tara withdraw at the end of each month for four years?
A: Deposit each month = 490 $ Time = 7 years Interest rate = 4.5 % compounded monthly Monthly rate =…
Q: What is the relationship between nominal and effective interest rates?
A: The interest rates refer to the rate at which the loans are given by the banks, or other lending…
Q: Define what is meant by (pure) credit rationing. Save Answer
A: Rationing is a source of artificial control on the demand and supply of the goods and services.
Q: What is Annual Effective Yield?
A: Yield refers to the earnings that are generated and then realized on a particular investment over a…
Q: What is meant by Prime interest rate?
A: Prime Interest Rate is the interest rate which is determined by the federal funds rate.
What is Effective interest?
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