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1 year ago

The actual interest rate on a loan that is compounded monthly but expressed as an annual rate is referred to as the _____ rate.

Business

1 answer:

Brrunno [24]1 year ago

3 0

annual percentage rate

The effective tax rate of return from an investment for a year, taking into account compound interest, is known as the annual percentage yield (APY). The amount that lenders charge borrowers as a proportion of the principle is called the interest rate. Additionally, it is the sum derived from deposit accounts.

The annual interest produced by an amount that is paid to investors or levied to borrowers is referred to as the annual percentage rate (APR). APR is a percentage that expresses the real annual cost of borrowing money throughout the course of a loan or the revenue from an investment. This does not account for compounding and includes any fees or other expenditures related to the transaction.

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If an insured is concerned about being unable to pay the premiums on his or her whole life policy in the event of a total disabi

ELEN [110]

Answer:

c. Waiver of Premium

Explanation:

A waiver of premium is clause in an insurance contract in which the insurance company promises not to oblige the insurer to pay a fee to maintain the contract in some extraordinary cases: these cases are usually either disability or death.

Because in the case of this question the insured is concerned about becoming disable and losing the ability to pay for the contract, he is likely to benefit from a waiver of premium included in his insurance contract.

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2 years ago

You have a neighbor, Mr. Peterson, who comes to you for advice. He owns a fish and chips restaurant, "The Codfather, LLC" which

Vladimir [108]

The first advice I would give Mr. Peterson would be to formalize the transfer. So the first step in this situation would be to contact a good lawyer to see if the transfer of business to your child would be authorized. This is because the transfer of LLCs has rules that may differ from one location to another.

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3 years ago

Read 2 more answers

If the MPC = .80, all taxes are lump-sum taxes, and the equilibrium GDP is $40 billion below the full-employment GDP, the size o

Sav [38]

Answer:

recessionary gap = 8 billion

so correct option is c) $8 billion

Explanation:

given data

MPC = 0.80

GDP = $40 billion

to find out

the size of the recessionary gap

solution

we get here first Multiplier that is

Multiplier = $\frac{1}{1-MPC}$ ..................1

Multiplier = $\frac{1}{1-0.80}$

Multiplier = 5

so recessionary gap will be

recessionary gap = $\frac{GDP}{5}$ ................2

recessionary gap = $\frac{40}{5}$

recessionary gap = 8 billion

so correct option is c) $8 billion

5 0

2 years ago

Partnership XYZ distributed a piece of land in a nonliquidating distribution to Bob, a 50% partner, during the current taxable y

andrezito [222]

Answer:

a. Partnership XYZ's recognized gain (loss)

recognized gain = fair market value - basis = $180,000 - $50,000 = $130,000

b. Bob's taxable gain (income)

Bob's taxable income = $130,000 x 50% = $65,000

c. Bob's basis in the property

Bob's new basis = $180,00 x 50% = $90,000

d. Bob's basis in the partnership

Bob's basis in the partnership = $40,000 + $65,000 = $105,000

4 0

2 years ago

A company operating under an EOQ policy enjoys rising annual demand for their products for three consecutive years. During this

Oduvanchick [21]

Answer:

Their order quantity will rise but the time between orders will fall.

Explanation:

Let's analyse the EOQ formula:

$Q_{opt} = \sqrt{\frac{2DS}{H}}$

If Demand increases

The dividend increase, so the quotient increase.

EOQ will rise.

<u>Only options b and c are correct on that statment.</u>

Now let's check the time between order:

$\frac{EOQ}{Demand} \times 365$

If we analyze the increase in demand:

√(2xΔDxS/H)/ ΔD

everything else is keep constant so we have:

√(CxΔD)/ ΔDx

If we use L'Hopital we can conclude this function limit is zero.

Anyway a more easy way to do it will be calculate with a demand of 1000

and then with a demand of 50,000 to notice how much the time between order decrease.

√(1000) / 1000 = 0.031622776

√(51000)/ 51000 = 0.004428074

<u>so we have EOQ increase and days between order decrease.</u>

Now only option B is correct !

8 0

2 years ago