Mr Heskey
D1
Inflation:
The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to stop severe inflation, along with severe deflation, in an attempt to keep the excessive growth of prices to a minimum.
Source - http://www.investopedia.com/terms/i/inflation.asp#axzz2Ek6FOu6o
Inflation is when the price of general pricing of everyday goods rise, therefore making the power of purchasing lower. Another way to say it is that inflation is when products prices are rising every year, for example; fuel prices are always rising in the United Kingdom.
Here is a recent graph from the BBC showing the recent inflation percentages in the UK:
Source - http://www.bbc.co.uk/news/10612209
Inflation would have an impact on Pimlico because if you go back to the issues with the prices of fuel rising then Pimlico will be spending a lot of money on fuel, this is because they are plumbers, therefore; they will be making home visits to people who need their home appliances fixing, so this means that Pimlico are going to be spending a lot of money on travel as their workers will be using the company vans, so they will need money for fuel, which will be very expensive to fund.
Interest Rates:
The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR). The assets borrowed could include, cash, consumer goods, large assets, such as a vehicle or building. Interest is essentially a rental, or leasing charge to the borrower, for the asset's use. In the case of a large asset, like a vehicle or building, the interest rate is sometimes known as the “lease rate”.
Source - www.investopedia.com/terms/i/interestrate.asp
Interest rates are all involved within borrowing money, fore example; if a company were to try and get a loan, they would want the interest
Inflation:
The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to stop severe inflation, along with severe deflation, in an attempt to keep the excessive growth of prices to a minimum.
Source - http://www.investopedia.com/terms/i/inflation.asp#axzz2Ek6FOu6o
Inflation is when the price of general pricing of everyday goods rise, therefore making the power of purchasing lower. Another way to say it is that inflation is when products prices are rising every year, for example; fuel prices are always rising in the United Kingdom.
Here is a recent graph from the BBC showing the recent inflation percentages in the UK:
Source - http://www.bbc.co.uk/news/10612209
Inflation would have an impact on Pimlico because if you go back to the issues with the prices of fuel rising then Pimlico will be spending a lot of money on fuel, this is because they are plumbers, therefore; they will be making home visits to people who need their home appliances fixing, so this means that Pimlico are going to be spending a lot of money on travel as their workers will be using the company vans, so they will need money for fuel, which will be very expensive to fund.
Interest Rates:
The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR). The assets borrowed could include, cash, consumer goods, large assets, such as a vehicle or building. Interest is essentially a rental, or leasing charge to the borrower, for the asset's use. In the case of a large asset, like a vehicle or building, the interest rate is sometimes known as the “lease rate”.
Source - www.investopedia.com/terms/i/interestrate.asp
Interest rates are all involved within borrowing money, fore example; if a company were to try and get a loan, they would want the interest