I know the effects of interest on price, but why?
131550
Let's say a bond is paying 10% and its par value is 100, so a coupon payment for one year is 10.\n\nIf interest rates go up to 11%, to pay its coupon payment of 10, the value has to drop to 90.9 to match up.\n\nSimilarly, if interest rates go to 9%, to get a coupon of 10, the value has to go up to 111.11 to match up and give the same coupon.\n\nSo, when rates rise, the price goes down and vice versa.
694
how about how tax affects the price level of products and services :P
18523
Generally you get rates by dividing change in position by the change in time.  Since differentiation like this tends to amplify noise, observation errors, etc., often some sort of filtering or averaging is used to smooth out the noise.
581897
Even though its an annual fee it will accrue interest in you do not pay the whole balance off.\n\nLC
650032
Printing more money causes inflation.  The more money there is in the economy for the same number of goods, the greater the cost of each good.  \n\nInterest rates are a combination of the inflation rate and the "real" interest rate (that discounted for inflation).  If inflation increases, the interest rate goes up.  The government pays its debt with interest.  As such, it just got a lot more costly to pay off the debt.\n\nSo ... if a lot of money is printed, we get all of the negatives associated with inflation and the devaluation of the currency, plus it will cost a lot more to pay off the debt.
653742
It is all about supply and demand. The demand is there and the supply gets cut back so the price increases.
560628
Suppose that you are making some product. \n\nSuppose you have two inventory choices -- LIFO or FIFO.  Inflation is causing you to pay more for parts.  If you make a new product, you take parts out of inventory.  You sell the product for the going rate.  The inventory system youuse doesn't affect the amount you take in.  But it does affect the cost of making the product.  \n\nYour profit is the sales price minus the cost of making the good.  If you use LIFO, then your cost will be the new price of the parts.  If you use FIFO, then the cost will be the old, lower, price of the parts.  Using LIFO means that your profits are lower.  Since you only have to pay taxes on your profits, your taxes are lower.
263115
They are telling you that the 8% interest on the amount financed by the bank is $600.  They are telling you what the simple interest is on the amount financed for the first month.\n\nInterest = Principle*Rate.  Assuming that the 8% interest is an annual rate, what would that be for one month?  8%/12 = 2/3% or .00666666.\n\n$600 = Principle * 2/300.  So, the amount borrowed or the principle was 600*300/2 = 90000 dollars.\n\nIf they borrowed 90000 dollars and it was 90% of the purchase price 90000 = 90%*Purchase price, that means it was a 100,000 dollar house to begin with.\n\nWe can do it backwards to check.  Start with 100,000 dollar house.  Now, make a 10% down payment and finance the rest, 90,000.\n\nThe first months payment on the interest would be 1/12 or the 8% on 90,000 or 1/12*.08*90000 = 600.  Yep, it was a 100k house.
457373
Most people refinanced their homes to get out of credit card debt.  Gold only went up because of inflation.  If inflation drops, then gold prices will drop as well.
231747
Decreasing interest rates can actually spur inflation rather than curb it. That is why the Fed keeps raising interest rates.
164822
Tourists comprise a very small amount of the Foreign Exchange market.  Shifts in tourist patterns have much less effect on currency prices than demand by institutional traders.  Interest rates, fiscal deficits, trade deficits, and the strength of the economy that issues the currency tend to be the factors affect currency values most (for those currencies that are allowed to float)
417417
It all relates to the P/E or the Price to Earnings ratio. It measures how much revenue or profit one share earns and compares that to the price you would pay for that one share on that open market.\n\nWhat you or your banker are talking about can be dangerous because you could be paying a lot of money for a share that does not have a lot or any income behind it at all so you would be in danger of losing your investement. This happened a lot in the dot come bust where sahres worth $500 or more were issued and bought for companies that weren't even making $.01 per share.
177659
Since you're getting the money w/o tax withholding.  You should also look into paying estimated taxes.  Otherwise, if you owe taxes when filing tax return, you might get charged with interest for the tax payment due.
273066
There are spot exchange rates, what someone exchanges at the moment (these actually have little effect)\nThere are future exchange rates which is included in a contract my companies of different countries.  Such as British Company is selling an asset to American Company for 100,000 Pounds due in 30 days.  The equivalent price of the asset in dollars to the 100,000 pounds is the exchange rate.  These types of exchange rates typically make up the rate.\n\nThese two things make up the current exchange rate showing its intense variablity.\n\nTrying to make a model to determine exchange rates has led to many flaws using prices, real and nominal rates, and inflation in order to determine them.
656257
The price history for the stock is adjusted for the amount of the split. \nSo if it's a 2 for 1 stock split, the price would be adjusted by half not JUST FOR TODAY'S stock price, but for all the prices going back in time.\n\nIt has no effect on the value of the stock.
643778
Even "high interest" savings or Money market accounts pay less than the interest rate a bank charges for a loan. That's how banks make money. They take in money and pay a low interest rate, and then they lend money out at a higher interest.
645486
milind_ , \n\nWill you make no payments on the $1,000 loan value(principal and interest) until the 20 years is up? And when you say the interest is 20% reducing, how exactly does interest rate decline/change during that period? If I know that then I can give you the answer. Cheers