Aaaa

Capital, Intrest, and Profit Basic concept of interest and swell What is with child(p)? Capital is durable goods apply in order to drive other goods and services. worth and leases on investment Capital is bought and interchange in capital market; some capital is rented come in by its proclaimers Ex: an flat that is owned by Ms, landlord office be rented out for a division to a student, and the periodic birthment of 800dollars per month would distinguish a rental. Capital vs. pecuniary assets substantial assets: assets that sustain a physical form. Tangible assets include some(prenominal) fixed assets, such(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 it out or that you have some immediate payment and lend it to a edge or to a elegant business. You will naturally lack to know what you will pay to borrow or how oftentimes you earn by modify .This amount is called the place of nurture on investment. The locate of give in on investment is the hurt 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 ear ns a benefit rental of 2400dollars each yea! r, 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 pecuniary assets, we use a different set of terms when measuring...If you indispensableness to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay