Answer:
Interest rate changes affect my company (here school) in following
ways:
- Increase in interest rate will affect the parents who are
having debt. They will be having less income to spend on their
children, so they may think to shift the school of the children to
more affordable private school where fees are less.
- If more students would be moving out of the school, to compete
with other school even my school will have to decrease its fees or
provide more facility with same fee which will decrease the revenue
of my school.
- If my school would have been taken loan for expanding or adding
more infrastructure to the school, interest that needs to be paid
by the school will increase which will decrease the profitability
of the school and vice versa in case of decrease in interest.
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