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Capital, Intrest, and Profit Basic concept of interest and swell What is cap? Capital is durable goods utilize in order to expose arctic goods and services. worth and rentals on investment Capital is bought and sell in capital market; some capital is rented surface by its birthers Ex: an flat that is owned by Ms, landlord expertness be rented out for a course to a student, and the periodic birthment of 800dollars per month would distinguish a rental. Capital vs. pecuniary assets palpable assets: assets that become a physical form. Tangible assets include twain fixed assets, such(prenominal)(prenominal) as machinery, buildings and land, and current assets, such as inventory. The opposite of a tangible asset is an intangible asset asset. Nonphysical assets, such as patents, trademarks, copyrights, goodwill and brand recognition, are all fonts of intangible assets. The stray of diminish on investment Suppose that you own some capital and rent i t out or that you have some immediate payment and lend it to a lingo or to a elegant business. You will naturally necessity to know what you will pay to borrow or how ofttimes you earn by modify .This amount is called the reckon of gentility on investment. The locate of come down on investment is the determine of borrowing or lending money (interest rates). Rate of return on capital Lets consider the example of a rental car company .

xxx company demoralises a used car for 20000dollars and rent it out, after subtracting all expenses and presumptuous no change in the cars price, the xxx company earns a terminate rental of 240 0dollars each year, so the rate of return is! 12percent. 2400/20000=12percent The rate of return=dollars per period /dollars Example: I buy a plot of land for 100.000dollars and sell lit a year later for 110.000dollars of there are no other expenses the rate of return on this investment is 10.000dollar per year /100.000 or 10 percent . Financial assets and interest rates For the case of monetary assets, we use a different set of terms when measuring...If you unavoidableness to get a full essay, order it on our website: BestEssayCheap.com

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