Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The rate of interest represents the compensation to the lender for the administrative cost incurred, such as rent, salaries, air conditioner, and other costs. Also
The rate of interest represents the compensation to the lender for the administrative cost incurred, such as rent, salaries, air conditioner, and other costs. Also a compensation for the risk of not recovering the cash flow that was lent, and for an additional profit. Why do you think in the Puerto Rico Bank and Financial sector, the interest rate that is paid to the clients in the savings accounts is so low? Few years ago the interest rates were much higher.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started