By Burton G. Malkiel
T he interest rate measures the portion reward a lender gets for deferring the intake of resources until the next date. Correspondingly, it steps the cost a debtor will pay to have resources now.
Assume I have actually $100 today that i’m prepared to provide for starters 12 months at a yearly rate of interest of 5 per cent. At the conclusion associated with I get back my $100 plus $5 interest (0.05 ? 100), for a total of $105 year. Read more ›