What Are the Pros and Cons of Capitalized Interest?
Capitalized interest is a financial concept where the cost of borrowing money for a long-term project is added to the project’s value on the balance sheet instead…
What Is an Assumed Interest Rate?
The assumed interest rate (AIR) is a fundamental concept in finance and insurance, especially in products like annuities and life insurance. Simply put, an assumed interest rate…
What Is the Connection between Price Level and Interest Rate?
The relationship between price levels and interest rates is one of the fundamental connections in macroeconomics. Price levels refer to the average price of goods and services…