is interest earned? In what sense is capital productive?

is interest earned?

In what sense is capital productive?

Solutions

Expert Solution

Interest earned can also be called internet income. It is the amount earned by the investors as they place their money or funds in the investment portfolio or banks. For example,

Money deposited by an individual in the savings accounts that are operated by the banks. This money then earns the interest which becomes the income of the investor or the individual.

or Debentures which are the debt instruments in which the investors can place their money. The returns we get from this investment is also an interest earned.

However, these investments or projects have different rates thus their earnings vary according to the type of investment one chooses to partake in.

Capital is said to be productive when the physical capital is being optimal to provide or produce the goods services in an economy.

Physical capital here means the factor of production such as machinery, computers, etc., excluding labor.

Productivity of a capital is a very important source for the growth of any nation.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

An individual invested $1,000 for one year and earned $45 in interest. What is the percentage of interest earned?

An individual invested $1,000 for one year and earned $45 in interest. What is the percentage of interest earned?A. 4.25%B. 4.5%C. neither A or B

In what sense is the cost of capital an opportunity cost? An opportunity cost to whom?...

In what sense is the cost of capital an opportunity cost? An opportunity cost to whom? And, Is it possible that there could be sources of financing that have a zero cost?

1. Erikson's stage of generativity vs. stagnation is focused upon being productive, creating a sense of...

1. Erikson's stage of generativity vs. stagnation is focused upon being productive, creating a sense of meaning, and contributing to future generations. How do you believe you will (or currently) satisfy the need for generativity during midlife? response to this question must be a minimum of 200 words. 2. What are two pieces of advice that you would give to a couple struggling with marital problems? response to this question must be a minimum of 100 words.

Times-Interest-Earned Ration Calculated the times-interest-earned ratio for Smith & Sons Inc for 2015 and 2016 and...

Times-Interest-Earned Ration Calculated the times-interest-earned ratio for Smith & Sons Inc for 2015 and 2016 and comment on the company’s ability to pay its current interest payments. Did the company’s ability to pay its current interest changes improve? Time interest earned ration = Income before interest expense and income taxes/Interest expense Smith & Sons, Inc Balance Sheet Decemober 31, 2016 and 2015 (In millions) 2016 2015 Net sales 10,000 9,500 Cost of goods sold (5,500) (5,200)...

What would be the annual percentage yield for a savings account that earned $69 in interest...

What would be the annual percentage yield for a savings account that earned $69 in interest on $1,000 over the past 365 days? Enter your answer as a percent rounded to 1 decimal place.

What interest rate (in percent) is earned on a $1,300 depositwhen $1,780 is paid back...

What interest rate (in percent) is earned on a $1,300 deposit when $1,780 is paid back in one year? (Round your answer to two decimal places.)

Quincy put $100 in the bank and earned 25 cent in interest. What is the $100...

Quincy put $100 in the bank and earned 25 cent in interest. What is the $100 considered? Group of answer choices Reinvesting Current Ratio Principal Present Value The process by which Maggie manages her liquid assets is known as? Group of answer choices Quarterly Management Annual Management Management Cash Management Tom deposits his payroll check into a financial institutions that provide traditional checking and savings accounts. This type of institution is known as? Group of answer choices Credit Union Non...

What interest will be earned if $6600 is invested for 8 years at 12% compounded monthly?...

What interest will be earned if $6600 is invested for 8 years at 12% compounded monthly? (Round your answer to the nearest cent.) $

When productive factors (the services of capital and labor, for example) are combined to produce a...

When productive factors (the services of capital and labor, for example) are combined to produce a unit of output, and the production requires the participation of both inputs, a problem arises as to how to distribute the output as factor payments (wage and rental payments) to reward the owners of the participating inputs. The issue of how to fairly distribute the output as factor payments has preoccupied economists for generations. The most common solution that emerges in competitive markets is...

1. FOR MCDONALDS CORP: WHAT IS THE 2018 AND 2017 TIMES INTEREST EARNED 2. FOR MCDONALDS...

1. FOR MCDONALDS CORP: WHAT IS THE 2018 AND 2017 TIMES INTEREST EARNED 2. FOR MCDONALDS CORP: WHAT IS THE 2018 AND 2017 WHAT IS THE TOTAL DEBT TO TOTAL ASSETS 3. FOR MCDONALDS CORP: WHAT IS THE 2018 AND 2017 AVERAGE COLLECTION PERIOD

Subjects