ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The percentage rate paid on money invested or saved.
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Rate of Return
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Trade-Off
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Capital Gains
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Risk
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Explanation:
Detailed explanation-1: -The interest rate refers to the percentage rate paid on the money saved or invested. Investing is the purchase of assets with the goal of increasing future income.
Detailed explanation-2: -Return on investment (ROI) is calculated by dividing the profit earned on an investment by the cost of that investment. For instance, an investment with a profit of $100 and a cost of $100 would have an ROI of 1, or 100% when expressed as a percentage.
Detailed explanation-3: -The ROI looks at investment’s growth from beginning to end. The internal rate of return or IRR looks at the investment’s annual growth rate. The rate of return or ROR is the net value of discounted cash flows on an investment after inflation.
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