<span>Contract law is generally a matter of state, not federal law. Each state (and federal district, unincorporated territory, and Indian reservation) of the United States has its own body of statute and common law that governs the creation and enforcement of contractual obligations. These laws can vary from one jurisdiction to another, and the statements and analysis offered here are only generalizations. There are, however, broad commonalities between different states’ contract laws, a result of their common descent from English common law. Besides the state statutes and case law, contract law can be found in the Restatement (Second) of the Law of Contracts, a publication of the American Law Institute, which seeks to set forth the “black letter law” of contracts in simple, easy-to-understand terms. While not binding on courts, the Restatement is of great persuasive value in helping courts determine how the law should be applied in specific cases.
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Answer:
The answer is 0.91%
Explanation:
Solution
Farmers Bank:
Lending Amount =$50,000
Nominal rate (APR) =5.0%
Interest paid = Quarterly (4 periods in a year)
Thus
The effective annual rate (EAR) = (1 +APR/Number of compounding periods a year)^(number of compounding periods a year) -1
=(1 +5.0%/4)^4 -1
=(1+ 0.0125)^4 -1
=(1.0125)^4 -1
=1.05094533691406 -1
= 0.5094533691406
= 5.0954%
Therefore the effective annual rate in farmer bank is 5.0954%
Merchants Bank:
Lending Amount =$50,000
Nominal rate (APR) =6.0%
Interest paid = Annually (1 period in a year)
Thus
The effective annual rate (EAR) = (1 +APR/Number of compounding periods a year)^(number of compounding periods a year) -1
=(1+ 6.0%/1)^1 -1
= (1+0.06)^1 -1
=(1.06)^1 -1
=1.06-1
=0.06 or 6.0000%
Therefore the effective annual rate of the Merchant bank is 6.000%
Now,
The difference between the annual rates=EAR merchant bank -EAR Farmers bank
=6.0000% - 5.0945%
=0.9055% or 0.91%
Therefore the difference between the effective annual rates charged by the two banks is 0.91%
"it" stands for product or service you are selling.
Answer:
"B"
Explanation:
This is the first stage of initiating a legal action. The plaintiff initiates a service of process by providing a notice supported by of legal action supported by court documents to the defendant and also give some time to respond to the summon order.
If the defendant refuses to honor the invitation , he is found at default and the court can proceed to award reliefs to the plaintiff.