Answer:
Rate= 168.65%
Explanation:
When loans are collected there is interest that is paid on the principal collected. The interest is usually expressed as a percentage per year.
The following formula is used to calculate interest rate
Interest = principal* rate* time
We are asked to calculate annual percentage
Rate = interest/(principal * time)
Interest bis paid every two weeks. That is twice a month, and there are 12 months in a years. That is 2*12= 24 times.
Total interest per year= 24* 26= $624
Using the formula
Rate= 624/(370*1)
Rate = 1.6865
Rate= 168.65%
Answer:
Human factors is involved in basic technology, but in Advanced technology system, human factor is not present, once the system cannot access the customer's credit history, that would be he final decision, and it cannot be changed again by others.
Explanation:
Solution
- In basic technology, the credit check relies more on the organization, and it's relationship with its customers, Customer's credit history acts as the base for producing credit decision and it's association with the organization is not relevant to the system.
- In basic technology system. some human factor plays a role to it. but in advanced technology, human factor is not there and if system refuses credit based on customer's credit history then that would be the final decision and cannot be revoked or modified by another clerk.
- In basic technology, credit check is carried out by the Credit department which work with instruction of company's credit policies, but in advanced technology system, the System Logic carries out the decision making
Answer:
Murphy Company
The year in which Murphy recognizes the income is year 2.
Explanation:
As a cash basis taxpayer, Murphy Company reports income and deductions in the year that they are actually paid or received. Similarly, as a cash basis taxpayer, Murphy Company deducts expenses in the year the expenses are paid off, which is not necessarily the year they were incurred. The income for services of $9,000 rendered to a customer, for which payment was received on January 3, year 2, will be recognized in year 2 and not in year 1 when the services were performed.
Answer:
Investors with an experience of financial crises are better at diversifying their portfolios
Explanation:
When an investor has experienced a financial crisis in the past, and decides to diversify his investment portfolio as a result, he is using both human judgment and experience to take the best decisions available to him.
Diversifying your investment porftolio is a good decision because it reduces risk (although it may also reduce profitability so there is a trade-off). Investors with past experience tend to spread their investments in order to reduce risk and avoid large losses. They do this because they see the possibility of a new financial crisis in the near future.
Answer:
The answer is D. positive normal profits but zero economic profits.
Explanation:
For a firm to have positive normal profits is to also have zero economic profit.
Normal Profit is the the popular accounting profit where we substract total cost from total revenue.
While economic Profit is the sum of total cost and the opportunity cost substracted from total revenue.(i.e total revenue - (total cost + opportunity cost). The opportunity cost is the cost of the alternative forgone action. That is the cost of the action that wad abadoned.
The reason for this is that because of the positive economic profit witnessed in the perfectly competitive market in the short run, many firms will enter the industry because there is no barrier to entry and with this uncontrolled entry, price will continue dropping and will drop to the point where all firms make normal profit(zero economic profit) in the long run.