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Stolb23 [73]
2 years ago
15

The discount rate is the rate of interest charged on loans from ______ to _____.

Business
1 answer:
mash [69]2 years ago
4 0

The Federal Reserve discount rate is the rate of interest charged on loans from  the Federal Reserve to commercial banks.

<h3>What is discount rate?</h3>

The discount rate serves as the interest rate that is been  charged to commercial banks as well as other banks.

This is been charged as a result of the loans they took from the Federal Reserve Bank and this is been charged based on agreed interest rate and this can help to know present value of future cash flows.

Learn more about  discount rate at:brainly.com/question/7459025

#SPJ12

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AlekseyPX

Answer:

entrepreneurs

Explanation:

4 0
3 years ago
Give three reasons why food is processed.​
lubasha [3.4K]

To make it edible and digestible

To kill all germs in the food

To make chewing easy

3 0
3 years ago
A company budgets the following merchandising purchases: April: $70,000; May $90,000; June: $60,000. All purchases are on accoun
velikii [3]

Answer:

$77,500

Explanation:

The computation of the cash disbursement for June month is shown below:

= June purchase × month percentage given + May purchase × following month percentage + April purchase × second following month percentage

= $60,000 × 25% +$ 90,000 × 50% + $70,000 × 25%

= $15,000 + $45,000 + $17,500

= $77,500

The remaining percentage would be

= 100% - 25% - 50%

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3 0
3 years ago
Your grandfather wants to establish a scholarship in his father’s name at a local university and has stipulated that you will ad
Paul [167]

Answer:

the answer for the first question is $166667.

the answer for the second question is $210526

the answer for the third question is An inverse.

Explanation:

given information that i will invest in a $10000 scholarship that will pay forever.

the interest rate charged is 6.00% per annum therefore this is a perpetuity present value problem where there is streams of income forever therefore we use the formula :

Pv of perpetuity= Cf/r

where Cr is the cash flows payed by the single investment forever in this case $10000 then r is the interest rate of the investment amount which is 6% in this case.

Pv of Perpetuity= $10000/6%

                           =$166667 therefore i must invest this amount to get the scholarship running with streams of $10000 forever.

in the second problem if now the interest rate is changed from 6% to 4.75% then the amount to be invested would be :

Pv of perpetuity = $10000/4.75%

                              =$210526 therefore this is the amount to be invested for a forever $10000 stream of incomes for a scholarship.

the relationship is indirect cause as the interest rate decreases the present value of the perpetuity that must be invested increases.

3 0
3 years ago
Which of the following statements is correct?
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Answer:

D

Explanation:

6 0
3 years ago
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