answersLogoWhite

0


Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: Why might someone be willing to pay interest on a purchase rather than pay it all in cash?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Finance

What is the definition of reinvestment?

ReinvestmentUsing dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash.Viper1


If you are willing to pay off your credit card do you think they will negotiate on the balance?

No. Why would they? The credit card companies make money by your paying interest. If you are going to be paying off the balance, they will no longer be making money from you. Why would they also desire to be accepting a lower amount for the payoff? If on the other hand, you are behind in your payments, they may then be willing to renegotiate the interest rate to encourage you to make payments rather than walk away from the loan. They may also be willing to negotiate a lower interest rate if you are making payments on time if you should indicate that you deserve a better rate (with them thinking that you will otherwise pay it off and have them make less.)


Why would a corporation rather borrow money and pay interest than sell stock and then pay dividends?

Interest is tax deductible, so amounts paid lower the tax they would have otherwise paid. Dividends are paid with after tax earnings..there is no tax deduction for them. Of course, someone receiving interest pays tax on it at their ordinary income rate, and someone receiving dividends pays tax at the capital gain rate, which is lower.


Would you rather have a savings account that offered simple interest or an account that offered compound interest?

account and i just want points so yeh


What difference does interest rates being variable rather than fixed make to pension plans housing loans and other personal finances?

what difference does interest rates being variable rather then fixed have on pension plans or home loans

Related questions

Why would someone choose to purchase a laptop computer rather than a desktop?

laptops are portable with more features and pertty


What is the definition of reinvestment?

ReinvestmentUsing dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash.Viper1


How you can interest someone in book reading?

To interest someone in reading you have to find the one topic that they love to talk/think about or do. Have them read books involving what they love helps them focus and find an interest. My students do best with reality based stories rather than fiction - that too may be important. If they can learn from the book they may find more value in it.


Where can someone purchase a Koodoo cellphone?

There are many places where one can purchase a Koodoo cellphone. Walmart sells these types of cellphones to their customers. Due to the low demand, the prices for these cell phones are rather cheap.


Where can someone purchase ping putters for golfing?

You may purchase a Ping putter for golfing, from the Ping website. If you would rather not pay a premium price, you may be abe to find them cheaper on eBay, or Golf Smith.


Is public domain software given away free of charge?

No. Or, rather, it can be, but it doesn't have to be. "Public domain" means you're allowed to give it away if you want, or sell it if you can find someone willing to pay for it.


If you are willing to pay off your credit card do you think they will negotiate on the balance?

No. Why would they? The credit card companies make money by your paying interest. If you are going to be paying off the balance, they will no longer be making money from you. Why would they also desire to be accepting a lower amount for the payoff? If on the other hand, you are behind in your payments, they may then be willing to renegotiate the interest rate to encourage you to make payments rather than walk away from the loan. They may also be willing to negotiate a lower interest rate if you are making payments on time if you should indicate that you deserve a better rate (with them thinking that you will otherwise pay it off and have them make less.)


Where can one purchase a boxset of The Beatles?

Someone could purchase a box set of The Beatles online at places like Amazon or eBay for great prices. Stores like Best Buy or Walmart are great places to look as well if you would rather purchase it in a store.


Saving money for a purchase and letting the interest work for you rather against you is called?

Saving money for a purchase and allowing the interest to accrue in your favor is known as "earning compound interest." This strategy involves reinvesting the interest earned, leading to exponential growth over time. By harnessing the power of compounding, individuals can maximize their savings and enhance their financial well-being. If you want to win some money and save for youreslf check this out.. sites.g oogl e.co m/view/giveaway31552/home remove the space in the link


Why would a corporation rather borrow money and pay interest than sell stock and then pay dividends?

Interest is tax deductible, so amounts paid lower the tax they would have otherwise paid. Dividends are paid with after tax earnings..there is no tax deduction for them. Of course, someone receiving interest pays tax on it at their ordinary income rate, and someone receiving dividends pays tax at the capital gain rate, which is lower.


Where can someone purchase a princess tiara online other than Amazon or eBay?

There are many places one might go to purchase a princess tiara online rather than Amazon or eBay. One reputable retailer would be the official Disney Store.


Is interest expense a Direct Cost?

Interest expense is not a direct cost because it is not used to manufacture the products rather it is paid to acquire the capital.