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Would a dollar tomorrow be worth more to you today when the interest rate is 20 percent or 10 percent?
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If two banks offer risk-free interest rates on both savings and loans but one is 5.5 percent and the other is 6 percent what arbitrage opportunity is available?
Arbitrage OpportunityArbitrage opportunity is any situation in which it is possible to make a profit without taking any risk or making any investment. The arbitrage opportunity that is available is to borrow from the bank with 5.5 percent interest and deposit it in the one with 6 percent interest. And this would happen: While the bank with 5.5 interest would experience a demand for loans, the bank with 6 percent interest would experience a surge in deposits. As a result, the interest rate at the first bank would increase while the interest rate at the second bank would decrease.
What would happen if the U.S. Federal Reserve Bank were to increase the legal reserve ratio?
You would expect higer interest rates, a contracted GDP and depreciation of the dollar
Suppose interest rates on treasury bonds rose from 5 to 9 percent as a result of higher interest rates in Europe what effect would this have on the price of an average company's common stock?
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How does a rise in US interest rates affect the pounds exchange rate?
Increasing the interest rate generally lowers inflation so the price level change of the U.S. dollar would be less. This means that the exchange rate (USD/GBP) would increase more slowly and less overall than without the interest rate increase.
How much has inflation increased since 1972?
Inflation has increased by around 5.7 percent since 1972. A dollar in 1972 would be equivalent to $5.7 in 2014.
Would a dollar tomorrow be worth more to you today when the interest rate is 20 percent or when it is 10 percent?
10 percent.
What would payments be on a six thousand dollar loan with a fourteen percent interest rate?
260.00
What would be the amount of compound interest on 8000 invested for one year at 6 percent compounded quarterly round your answer to the nearest dollar?
$491
How do you write one percent of a dollar?
You would write one percent of a dollar as $0.01
What is the interest on 3000 at 12 percent?
Simple interest would be 360
What is 13 percent interest on 8000?
Simple interest would be 1040
How do you find the percent paid on interest?
You would first find the percent (if it was 5% interest (for example) on a calculator you would do the amount then multiply by 5, then click the percent, by hand: you would multiply the amount you paid for then multiply by 0.05 then you would get the interest; simple math :D
What is the interest earned on 3180 if it is invested at 6.5 percent for 3½ years rounded to the nearest dollar?
If compounded and assuming the amount was 3180 dollars, it would be 784 dollars.
What is 60 percent off 1 dollar?
A dollar is made up of 100 cents, so 60 percent of a dollar would be 60 cents.
How much would payments be on 59000 thousand dollar property with 10 percent down and 7.5 percent interest?
There are several calculators online that can offer assistance in calculating amortization schedule. In the case of this problem - a $59,000 morgage at 10% down and 7.5% interest over 30 years would be roughly $371.28 per month.
How much will a 1 dollar deposit be worth after 48 years if the interest rate paid by the bank is 6 percent?
At simple interest, it would be $3.88 (6 cents per year for 48 years = 2.88). At compound interest, credited annually, it would be $16.39 (rounded). At compound interest, credited quarterly, it would be $17.44 (rounded). Compounding means that once credited, the interest becomes part of the principal for the next interest period.
How much interest would you receive for 2000 at 1 percent interest rate for 1 year?
1 percent of 2,000 is 20 .
