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Line 1: − because you lost the chance to use that money for your own benefit.+
Economics Homework Eleven Answers - Student Ten (view source)
Revision as of 12:09, December 3, 2009
, 12:09, December 3, 2009no edit summary
'''1. If you were to loan someone money, why would you want him to pay you something extra (interest) when he pays back the loan? Give at least one reason.'''
'''1. If you were to loan someone money, why would you want him to pay you something extra (interest) when he pays back the loan? Give at least one reason.'''
Because you lost the chance to use that money for your own benefit.
'''2. Suppose I loaned you $1000 today, and interest rates are 5% per year (compounded annually), and you repaid the loan plus interest in 2 years, then what is the total you would pay to satisfy this debt?'''$1100
'''2. Suppose I loaned you $1000 today, and interest rates are 5% per year (compounded annually), and you repaid the loan plus interest in 2 years, then what is the total you would pay to satisfy this debt?'''$1100