0
It could ruin your relationship with them. (very easily)
The risk can include a broken relationship, and some type of payback depending on the personality of the relative. There may be guilt on your part which will constantly eat at you.
Relatives can be a great source of help when in need. However, make sure you discuss the risk possibilities with them, so everyone understands. Hopefully nothing will go wrong but you still need that contingency plan.
There is truth in the statement, "owe no man anything." Still, sometimes there is nothing else to do but count on blood relatives.
What else can I help you with?
What is the market rate of interest formula used to calculate the cost of borrowing money?
The market rate of interest formula used to calculate the cost of borrowing money is: Market Rate of Interest Risk-Free Rate Risk Premium.
What is additional money that is paid for the use of a large sum of money?
The additional money paid for the use of a large sum of money is typically referred to as "interest." Interest is the cost of borrowing money, calculated as a percentage of the principal amount over a specific period. It compensates the lender for the risk and opportunity cost associated with lending the funds.
A price paid for borrowing money?
The price paid for borrowing money is known as interest. It is typically expressed as a percentage of the principal amount borrowed and compensates the lender for the risk of lending and the opportunity cost of not using that money elsewhere. Interest can be calculated using simple or compound methods, depending on the terms of the loan.
What is the interest on 10.000.000?
The answer depends on the interest rate! This will depend on a number of factors:whether you are borrowing or lending that money,for how long,in which country,the risk of default on the loan.
Difference in Relative risk and risk ratio?
There is no difference between the two. Relative risk is the same as relative ratio. Commonly abbreviated as RR, relative risk/ratio is measure of absolute risk in one population as a proportion of absolute risk in another. It is a measure of the strength of association.
In economics money paid for borrowing money is?
In economics, money paid for borrowing money is referred to as "interest." Interest is the cost of using someone else's money and is typically expressed as a percentage of the amount borrowed, known as the principal. It serves as compensation for the lender and can vary based on factors like risk, inflation, and market conditions. Interest can be classified as simple or compound, depending on how it is calculated over time.
What is risk free lending and borrowing?
In any kind of business transaction, all of the parties generally acknowledge that there is a level of risk that could lead to unforeseen losses to either party. This is particularly true in borrowing or lending money. The borrower could default on the loan for any number of reasons, and the lender could be left short. In addition, the interest rate could change, forcing one of sides to receive a different total return on the transaction than originally anticipated, which could have far-reaching effects. In the world of finance, however, there is a concept of risk-free borrowing and lending, where both sides know exactly what they are getting at any particular time and the amount of money is virtually risk-free. A prime example of this time of borrowing and lending is through purchase of US Treasury Bills.
why is interest charged?
Interest is charged primarily as a cost of borrowing money, compensating lenders for the risk of default and the opportunity cost of not using that money elsewhere. It incentivizes lenders to provide funds by ensuring they earn a return on their investment. Additionally, interest helps regulate the supply and demand for credit in the economy, influencing borrowing and spending behaviors.
What do you call an extra amount of money paid back with a loan as a charge borrowing?
The extra amount of money paid back with a loan as a charge for borrowing is called "interest." Interest is typically expressed as a percentage of the principal amount borrowed and compensates the lender for the risk and opportunity cost of lending the money. It can be calculated in various ways, including simple or compound interest, depending on the loan terms.
The relative risk of a proposed project is best accounted for by?
The relative risk of a proposed project is best accounted for by
To what extent should government borrowing be a cause for concern?
Government borrowing can be a concern when it leads to unsustainable debt levels, potentially hindering economic growth and increasing the risk of default. However, borrowing can be justified if it finances productive investments that stimulate the economy. The key is to maintain a balance, ensuring that debt remains manageable relative to GDP and that borrowing serves long-term economic goals rather than merely funding current expenditures. Ultimately, the implications of government borrowing depend on the context, including interest rates, economic conditions, and the purpose of the debt.
What kind of borrowing rates might a business get compared with an individual?
Borrowing rates a business might get compared with an individual are usually higher. The rate differs long with the risk one is willing to take. To put it more clearly : if you put in more financial risk, you will get in return a higher borrowing rate.
