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Bond [772]
3 years ago
13

On April 31, 2018, Elkhorn Associates borrowed $10 million cash from Colonial Bank and issued a 5-month, noninterest-bearing not

e, priced to yield an effective interest rate of 10%. The stated discount rate on this loan is:
a. More than the effective interest rate.
b. Less than the effective interest rate.
c. Equal to the effective interest rate.
d. Unrelated to the effective interest rate.
Business
1 answer:
Nady [450]3 years ago
4 0

Answer:

b. Less than the effective interest rate

Explanation:

The stated discount rate on this loan is Less than the effective interest rate

As the note is noninterest-bearing note, the stated discount rate on this loan is less than the effective interest rate.

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a. <em>g</em><em>r</em><em>e</em><em>a</em><em>t</em><em>e</em><em>r</em><em> </em><em>t</em><em>h</em><em>a</em><em>n</em><em> </em>

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<em>c</em><em>.</em><em> </em><em>e</em><em>q</em><em>u</em><em>a</em><em>l</em><em>s</em>

<em>d</em><em>.</em><em> </em><em>n</em><em>o</em><em>n</em><em>e</em><em> </em><em>o</em><em>f</em><em> </em><em>t</em><em>h</em><em>e</em><em> </em><em>a</em><em>b</em><em>o</em><em>v</em><em>e</em>

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⤵

Choi Eunbyul <3

3 0
2 years ago
The expected average rate of return for a proposed investment of $650,000 in a fixed asset, with a useful life of 4 years, strai
nexus9112 [7]
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8 0
3 years ago
When a real estate agent says the three most important factors when buying a property are “location, location, location,” the ag
Lorico [155]

<u>Answer:</u>

The correct answer for this is 'non price competition'.

<u>Explanation:</u>

When a real estate agent says the three most important factors when buying a property are “location, location, location,” the agent is referring to one of the forms of non price competition.

Non-price competition is a type of competition where two or more than two producers use factors like customer service, packaging or delivery rather than the price to increase the demand of the product or service.

Here, location is used as a non-price competition to increase the demand.

3 0
3 years ago
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