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Simple Interest
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∙ 13y ago
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Is the amount charged for use of bank's money is called interest?
Yes. The amount a bank charges you for using their money is called an interest. This facility wherein you get to use the banks money and repay them is called a Loan. The bank grants you a fixed amount as loan and you repay them every month along with an interest.
What is a fee charged for using money is called?
intrest?
Is using a loan good for your business?
Unfortunately there is no direct answer to this question. Sometimes using borrowed money is the best thing you can do for your business. Sometimes it is the worst thing you can do. What determines the answer is whether your business generates more profit and cash flow if you borrow money. If your answer is yes then borrowing money is probably a good thing. If the answer is no, it probably is not a good idea to borrow money for your business. How does it work? The purpose of borrowing money should be to do more business, to increase revenues and to grow profits and cash flow. But keep in mind that borrowing money increases your costs. So the extra profits and cash flow that you generate with borrowed money should exceed the cost of borrowing the money. If that is the case you get ahead by borrowing. If that is not the case, stay away from the bank. How do you determine whether borrowing money is likely to increase your profits and cash flow? There is only one good way and that is to create a financial model of your business. With the financial model you can simulate the effects of borrowing money. If you do not know how to create a financial model ask your accountant or contact a financial expert. You can also use a short cut to determine whether borrowing money is a good idea or not. But this has limited value and does not give you a precise answer. Here is how it goes. First, estimate how much revenues are going to increase if you borrow money. Second, subtract the variable cost of the increased production. Third, subtract the cost of the borrowed money. If the remainder is positive you are likely to increase your profits by borrowing money. Now you still need to check if the additional cash flow you create with the borrowed money is sufficient to pay back the loan on time. There is one other thing that you have to be aware of before you commit yourself by borrowing money. Risk. By borrowing money you increase your costs. You take on an additional obligation. If things go the way you hope you will make more money. But if they do not go your way you will lose money at a faster rate than if you had not borrowed money. In effect you have turbo charged your company to make more money. As a warning I would like to use an analogy. When you try to get somewhere by running as fast as possible you better know that you are running in the direction you want to go. If you run in the wrong direction you go fast and you will get in the wrong place fast. Have fun with it!
Is using a credit card borrowing?
yes!!
Is it better to have a higher the interest rate on a credit card the better that is for the card holder?
No. Using a credit card usually involves borrowing money and you want the lowest interest rate you can get. On the other hand, when saving money you want the highest interest rate.
Why is the united states borrowing money from the nation for wars?
If you mean "why is the U.S. borrowing money from the U.N.", the answer is because the U.S. doesn't have enough of its own. If you mean "why is the U.S. borrowing money from the country" then the answer would be that the U.S. is not borrowing its own money, its just using it.
What is borrowing money to invest in the stock market is called?
It is called using margin or leverage.
are there closing costs for using the money what percent will we be charged on money used?
They are typically $50 to $75 and 3.5% charged
Is the amount charged for use of bank's money is called interest?
Yes. The amount a bank charges you for using their money is called an interest. This facility wherein you get to use the banks money and repay them is called a Loan. The bank grants you a fixed amount as loan and you repay them every month along with an interest.
What is a fee charged for using money is called?
intrest?
What is the standard amount of money one can obtain using an online pay day loans service?
Most online pay day loan lenders will lend funds up to $1000. This amount is based on the borrowers needs, collateral, and previous borrowing history.
What is the percentage charged for the use of money?
None, if you own it before using it.
Where does all the money go during a depression or recession - surely there must always be the same amount of money hanging around and it simply changes hands?
This question is perhaps better explained by "where does the money come from in boom times?" The answer is that most of it is "virtual" -it is effectively created by borrowing and lending, because people borrow money to buy products, which the providers receive instantly. As a result, when people stop borrowing, we appear to loose money, because we are only using the money we actually have at the moment, not what we will have in the future (in the form of loans). Some of it goes to other countries to buy their exports.
Is using a loan good for your business?
Unfortunately there is no direct answer to this question. Sometimes using borrowed money is the best thing you can do for your business. Sometimes it is the worst thing you can do. What determines the answer is whether your business generates more profit and cash flow if you borrow money. If your answer is yes then borrowing money is probably a good thing. If the answer is no, it probably is not a good idea to borrow money for your business. How does it work? The purpose of borrowing money should be to do more business, to increase revenues and to grow profits and cash flow. But keep in mind that borrowing money increases your costs. So the extra profits and cash flow that you generate with borrowed money should exceed the cost of borrowing the money. If that is the case you get ahead by borrowing. If that is not the case, stay away from the bank. How do you determine whether borrowing money is likely to increase your profits and cash flow? There is only one good way and that is to create a financial model of your business. With the financial model you can simulate the effects of borrowing money. If you do not know how to create a financial model ask your accountant or contact a financial expert. You can also use a short cut to determine whether borrowing money is a good idea or not. But this has limited value and does not give you a precise answer. Here is how it goes. First, estimate how much revenues are going to increase if you borrow money. Second, subtract the variable cost of the increased production. Third, subtract the cost of the borrowed money. If the remainder is positive you are likely to increase your profits by borrowing money. Now you still need to check if the additional cash flow you create with the borrowed money is sufficient to pay back the loan on time. There is one other thing that you have to be aware of before you commit yourself by borrowing money. Risk. By borrowing money you increase your costs. You take on an additional obligation. If things go the way you hope you will make more money. But if they do not go your way you will lose money at a faster rate than if you had not borrowed money. In effect you have turbo charged your company to make more money. As a warning I would like to use an analogy. When you try to get somewhere by running as fast as possible you better know that you are running in the direction you want to go. If you run in the wrong direction you go fast and you will get in the wrong place fast. Have fun with it!
Is using a credit card borrowing?
yes!!
What is charges made for using another money?
The charge for illegally using other people's money is embezzlement. It refers to the theft or misappropriation of funds placed in one's trust.
What is a sentence using the word amount?
What amount of money do you need for the fieldtrip? No amount of coaxing worked to get the cat out of the basement.
