Suppose you are in charge of the financial departmentof your company and you have to decide whether toborrow short or long term. Checking the news, yourealize that the government is about to engage in amajor infrastructure plan in the near future. Predictwhat will happen to interest rates. Will you advise borrowing short or long term?

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Q: You have $5,000 on a credit card that charges a 23% interest rate. If you want to pay off the credit…

A: Interest rate is the amount charged by the lender from the borrower for the use of its money.

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