Respuesta :
The demand for money schedule shows the quantity of money that people want to hold. Falls as the interest rate rises.
What is the interest rate?
- An interest rate indicates how expensive borrowing is or how lucrative saving is. Therefore, if you are a borrower, the interest rate is the sum you pay for borrowing money and is expressed as a percentage of the overall loan amount.
- The basic interest formula is as follows, for instance, if you take out a $20,000 loan with a five-year term and a 5% interest rate: $5,000 in interest results from multiplying $20,000 by.05 by 5.
- Interest is the money you make when you allow someone else to use or hold your money when it comes to money you own, like a savings account. You would pay a total of $750 in interest if you borrowed $5,000 at a simple interest rate of 3% for five years. A = P (1 + rt) is the formula for simple interest.
- The principal is Rs 10,000, the interest rate is 10%, and the loan term is six years. The simple interest can be calculated as follows: A = 10,000 (1+0.1*6) = Rs. 16,000. Interest is 16000 divided by 10,000, or Rs. 6,000.
The demand for money schedule shows the quantity of money that people want to hold. Falls as the interest rate rises.
To learn more about the interest rates, refer to:
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