Ask Question
BusinessBusiness
11 December, 12:18

Why is it important to have a high intrest rate for an investment and a low one for a loan?

+5
Answers (1)
  1. 11 December, 12:20
    0
    Investment is an act of setting some amount side to grow and accumulate in the nearest future ... Investment is quite different from savings so Higher interest rate on investment is very important because tends to act as an aiding factor in letting such investment yield a lot of profit and grow.

    While loan on the other hand is debt borrowed that has not been paid back, people lend money for so many reasons and they do this because they don't enough capital so they source for external fund, but in the situation where interest rate accrued on loan is high, then it will be difficult for such individual to pay back because this will increase the money that has to be paid back.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Why is it important to have a high intrest rate for an investment and a low one for a loan? ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
One way in which philanthropy can be made strategic is to a. consult with a tax professional to get the maximum deductions. b. bring contribution programs into sharper alignment with business endeavors. c.
Answers (1)
What is the best definition of automation? the use of robotic equipment in a manufacturing process the application of scientific knowledge to find answers and fix problems the use of resources to manufacture goods more efficiently the hiring of
Answers (1)
Which of these is not a factor you need to consider when choosing a bank? a. The number of ATM machines b. Branch locations c. How often you need access to your money d. The amount of money you paid in income taxes last year
Answers (1)
In a table, an area that contains text or data for a particular row and column is called a. A. cell B. graph C. caption D. font
Answers (1)
Bennie’s Radiator Shop has installed a new machine that increases production by 200 units. Each unit sells for $30. What is the marginal revenue product of the new machine? a. $6,000b. $30c. $170d. 200 unitse. Insufficient data
Answers (1)
New Questions in Business
Ratemakers at ABC Insurance Company calculated the pure premium to be $280 for a risk they were considering insuring. What is the gross rate for this risk, assuming a 30 percent expense ratioA) $364 B) $400 C) $430 D) $520
Answers (1)
When plant assets are purchased as a group in a single transaction for a lump-sum price, the cost of the purchase is allocated among the different types of assets acquired based on their relative market values. true or false
Answers (1)
What are the security and management issues concerning virtual offices, especially hooked up into large virtual networks?
Answers (1)
Burns Industries currently manufactures and sells 20.000 power saws per month, although it has the capacity to produce 35,000 units per month.
Answers (1)
Deydey hollows out a piece of basswood to make a trough. if one makes trough by hollowing something out, what does trough mean
Answers (2)
Home » Business » Why is it important to have a high intrest rate for an investment and a low one for a loan?
Sign Up Forgot Password?