0
Still curious? Ask our experts.
Chat with our AI personalities
Lao
Blake
JudyAdd your answer:
Earn +20 pts
How relatively high interest rates affect currency values?
What is important is not high interest rates but high real interest rates: that is, interest rates adjusted for inflation.If a currency has high real interest rates, foreign investors will want to buy into that currency. The increased demand will push up the price of that currency relative to other currencies and so its exchange rate will "improve".
When you are earning interest is it better to have high or low rates?
High rates.However, high interest rates are usually a consequence of high inflation rates and so what matters is not the interest rate but the real interest rate which is the nominal interest rate relative to the inflation rate.Thus a 3% interest rate when inflation is 1% is better that a 5% interest rate when inflation is 4%.
How much interest will you earn?
It depends on the rates on offer.
What is the interest on 300000 savings?
The answer depends on the interest rates on offer and these will vary between lending establishments and between countries.
What is the present value of a 30 year annuity with payments of 7000 per year if interest rates are 8 percent annually?
85,109 if the payments are received at the start of each year and 78,804 if they are received at the end of each year
How do changes in interest rates impact the relationship between bonds and their value?
Changes in interest rates have an inverse relationship with bond values. When interest rates rise, bond values decrease, and when interest rates fall, bond values increase. This is because existing bonds with lower interest rates become less attractive compared to new bonds with higher interest rates.
Why do bond values decrease when interest rates rise?
Bond values decrease when interest rates rise because existing bonds with lower interest rates become less attractive compared to new bonds issued at higher rates. Investors are willing to pay less for existing bonds with lower rates in order to achieve a higher return on their investment. This inverse relationship between bond values and interest rates is known as interest rate risk.
What are the present Australian interest rates?
The present Australian interest rates from major lenders vary between 4.5% and 6%. For example, the Interest Rate for Commonwealth Bank is 4.61%, while the interest rate for Suncorp Metway is 5.79%.
What are the checking account interest rates?
The interest rates on checking accounts vary depending on the bank who issues them. At the present time, the interest rates can range from 0.20% APY to 0.93% APY, depending on which bank you choose.
How relatively high interest rates affect currency values?
What is important is not high interest rates but high real interest rates: that is, interest rates adjusted for inflation.If a currency has high real interest rates, foreign investors will want to buy into that currency. The increased demand will push up the price of that currency relative to other currencies and so its exchange rate will "improve".
What is the current bank interest rates for a new car loan in Florida?
Interest rates are dependent on your credit as well as your income/debt ratio. The lowest interest rate is 0% but the current interest rate for a new car loan is 6.28% for 48 months.
What has better interest rates used cars or new?
Auto interest rates are primarily dependent upon your credit history and your relationship to the lender. So whether the car is new or used should not matter.
What effect do interest rates have on the calculation of future and present value How does the length of time affect future and present value How do these two factors correlate?
What effect do interest rates have on the calculation of future and present value, how does the length of time affect future and present value, how do these two factors correlate.
Which of the following factors will change when interest rates change?
The present value of a bond's payment
How do fluctuations in interest rates impact the value of bonds in a financial portfolio?
Fluctuations in interest rates can impact the value of bonds in a financial portfolio. When interest rates rise, the value of existing bonds decreases because newer bonds offer higher yields. Conversely, when interest rates fall, the value of existing bonds increases as they offer higher yields compared to newer bonds. This relationship between interest rates and bond values is known as interest rate risk.
More than one net present value?
The present value depends on assumptions made about interest or inflation rates for the future.
What information can be found in the interest factor table?
The interest factor table provides information on the present value of money based on different interest rates and time periods.
