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Economics Homework Eleven Answers - Student Five (view source)
Revision as of 16:01, December 6, 2009
, 16:01, December 6, 2009note spelling
1. If I were to loan out money to someone, I would want them to pay me interest because loaning out money is just offering another service. If I were offering the service of washing someone's car, I would expect them to pay for my time and effort. This is the same idea when loaning out money. It is a service and although I would not be contributing much, if any, effort, I would still be contributing the time that I did not have that money, and, therefore, I should be payed for it.
1. If I were to loan out money to someone, I would want them to pay me interest because loaning out money is just offering another service. If I were offering the service of washing someone's car, I would expect them to pay for my time and effort. This is the same idea when loaning out money. It is a service and although I would not be contributing much, if any, effort, I would still be contributing the time that I did not have that money, and, therefore, I should be payed for it.
:Excellent.
:Excellent. Note spelling: "paid for it," not "payed for it."
2. $1,000 x 1.05 = $1,050 ----- $1,050 x another 1.05 = $1,102.50
2. $1,000 x 1.05 = $1,050 ----- $1,050 x another 1.05 = $1,102.50