1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
brilliants [131]
3 years ago
10

On December 1, 20X1, Money Co. gave Home Co. a $200,000, 11% loan. Money paid proceeds of $194,000 after the deduction of a $6,0

00 nonrefundable loan origination fee. Principal and interest are due in 60 monthly installments of $4,310, beginning January 1, 20X2. The repayments yield an effective interest rate of 11% at a present value of $200,000 and 12.4% at a present value of $194,000. What amount of income from this loan should Money report in its 20X1 income statement?A. $0B. $1,833C. $2,005D. $7,833
Business
1 answer:
zysi [14]3 years ago
3 0

Answer: <em>(C.) $2,005</em>

Explanation:

Given :

Money Co. made a cash outflow of $194,000 for the $200,000 loan Money gave to Home Co.  

The book value of the loan is $194,000.

The stated rate is 11%.

Hence they will receive an effective interest rate of 12.4% on cash outflow.  

∴

Income from the loan = Book value × Effective interest rate × No. of months of the year

= $194,000 × 0.124 × \frac{1}{2}

= $2,004.67

You might be interested in
Rheingold Supply has a seniority system by which employees who have worked the longest are first in line for promotions and last
MAVERICK [17]
B because legitimate defense does have a senority system
4 0
3 years ago
Country A has great expertise in the production of planes and produces a large quantity of planes while country B has expertise
Shkiper50 [21]

Answer:

B

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

A company has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries

Allocative efficiency occurs in efficient markets when goods, services or capital are distributed in a way that is efficient to all the parties involved.

When countries trade in the goods for which they have a comparative advantage in its production, all the parties in the trade gains

3 0
3 years ago
A __________ is a profit-seeking organization that receives deposits from individuals and corporations and uses some of these de
finlep [7]

Answer:

Commercial bank

Explanation:

A commercial bank accepts cash deposits from the general public and lends a portion of the money as loans to make profits. Commercial banks make profits by charging a high-interest rate on credit issued than the interest rate they offer on deposits. By accepting deposits and lending to other customers, commercial banks act as intermediaries between suppliers and users of credit.

Commercials are profit-making institutions. Although their primary function revolves around accepting deposits and issuing out loans, they also perform other duties such as;

  • Discounting bills of exchange
  • Overdraft facility
  • Agency functions, including payment functions and insurance of letters of credit and checks.
  • General utility services including foreign exchange transactions, underwriting securities, and safe deposits.
6 0
3 years ago
Indicate whether each scenario will affect the GDP deflator or the CPI for the United States. Check all that apply. Scenario Sho
Softa [21]

Answer:

(A) it will affect the GDP Deflator.

(B) it will affect both the GDP deflator and the CPI

Explanation:

(A) The increase in prices of imports increase real GDP and also the GDP deflator as now the US will purchase less of these cars from china and therefore there will be less imports of this car from china, people will prefer buying local inexpensive cars which will in turn increase the GDP even more than before so therefore this scenario only affects the GDP deflator only as the formula for real GDP is the sum of consumption spending, government spending,government saving( investment) and (exports minus imports) so the less imports we get the more real GDP we get in the US economy.

(B) This will affect both GDP deflator and CPI because firstly this will touch on the exports which will increase and bring in more revenue for the US therefore increasing real GDP because the prices of the fishing product has decreased which will cause the US economy to increase. it will also affect the CPI because now prices of this product have fell therefore the CPI is also going to fall probably causing a deflation.

5 0
3 years ago
money that is provided by the defendant to ensure his or her appearance in court is reffered to as----------------.
faust18 [17]

Answer:

Bail

Explanation:

Bail is just a measure of cash that is saved with the court to guarantee that you appear for all court procedures. You can post your bail in real money with the court, and you will at that point be discharged from authority.  

In the event that the litigant needs more money to post the whole bail, the court will acknowledge a bail security.  

The reason for bail is to guarantee that a respondent returns for future court appearances.

8 0
3 years ago
Other questions:
  • Which change should be made to the above cover letter excerpt before sending it to an employer? a. The author should to remove “
    5·2 answers
  • Describe how winning the world series can rapidly increase the supply of a baseball team souvenirs
    5·1 answer
  • Which of the following is a way developing nations are trying to raise living standards? A. Return to traditional ways of farmin
    11·2 answers
  • The demand for an electronic component is normally distributed with an average daily demand of 500 units and a standard deviatio
    7·1 answer
  • Many investors bought stocks on - ---, meaning they made only a small cash down payment with the rest coming as a loan from a___
    15·1 answer
  • In its 2017 annual report, Liberty Company reported sales of $1,200 million. If you anticipate that sales will grow by 4% each y
    15·2 answers
  • URGENT!! Describe the attractions of growth stocks and value stocks.
    5·2 answers
  • The price of apples falls. what happens in the market for apple pies?
    5·1 answer
  • What is a likely result of an increase in trade between nations
    9·1 answer
  • Margot and Steve owned several rental properties at the time of their divorce. The divorce decree gave ownership to Margot in re
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!