MathsGee Answers is Zero-Rated (You do not need data to access) on: Telkom | Dimension Data | Rain | MWEB
First time here? Checkout the FAQs!
MathsGee is Zero-Rated (You do not need data to access) on: Telkom |Dimension Data | Rain | MWEB

0 like 0 dislike
How do you define the term "interest rates"?
in Economics and Finance by Gold Status (10,269 points) | 13 views

1 Answer

0 like 0 dislike
Best answer

Interest rates can be thought of in three ways.

First, they can be considered required rates of return - that is, the minimum rate of return an investor must receive in order to accept the investment.

Second, interest rates can be considered discount rates. In the example above, 5.26 percent is that rate at which we discounted the \$10,000 future amount to find its value today. Thus, we use the terms "interest rate" and "discount rate" almost interchangeably.

Third, interest rates can be considered opportunity costs.

by Gold Status (10,269 points)

MathsGee provides answers to subject-specific educational questions for improved outcomes.

On MathsGee Answers, you can:

1. Ask questions
2. Answer questions
3. Comment on Answers
4. Vote on Questions and Answers
5. Donate to your favourite users

MathsGee Tools

Math Worksheet Generator

Math Algebra Solver

Trigonometry Simulations

Vectors Simulations

Matrix Arithmetic Simulations

Matrix Transformations Simulations

Quadratic Equations Simulations

Probability & Statistics Simulations

PHET Simulations

Visual Statistics

Other Tools

MathsGee ZOOM | eBook

16,915 questions
12,339 answers
2,428 users