Ann puts $300 in a bank account earning 4% interest. How much will she earn in interest in 1 year?

Home loans typically involve "points," which are fees charged by the lender. Each point charged means that the borrower must pay

nirvana33 [79]

Answer:

Ans. The effective annual interest rate charged on the loan is 12.99% effective annually. (Please see the attached excel spread sheet)

Explanation:

Hi, attached is the amortization table that I made for this case. Notice that there is a yellow and green cell, the yellow one is the result of using the "IRR" function of MS Excel which provides an effective monthly rate, since the payments are made every month, then we have to transform that monthly effective rate into an effective annual rate, this is the formula to use.

$EffectiveAnnual=(1+EffectiveMonthly)^{\frac{1}{12} } -1$

That is:

$EffectiveAnnual=(1+0.012267477)^{\frac{1}{12} } -1=0.12986448$

Which we round to 12.99% effective annually.

Finally, notice that I didnt use the payments to find the effective rate, I used the cash flow, that was because you didn´t receive all the 100K (the fee, remember?), you received $98,000.

Best of luck.

Download xlsx

3 0

3 years ago

Glenda works for a telecommunications company and oversees the planning, execution, and closing of any large telecom projects fo

yarga [219]

Answer:

Project manager

Explanation:

Glenda must be working as a project manager.

A project manager is a person that leads the team to design and execute projects within an establishment. He/she also ensures monitoring and control of resources in order to get maximum results.

Hence, Glenda must have been employed as a project manager for the telecommunication company.

4 0

2 years ago

According to kaplan and norton, _______ maps are "visual representations of a company's critical objectives and the crucial rela

Yuki888 [10]

Strategy Map - A strategy map is very crucial for an organization to accomplish its objectives. It allows businesses to devise and implement a good company strategy, find gaps in the strategy, describe the strategy to employees, and test the strategy to allow for adjustments if necessary.

8 0

3 years ago

An externality is internalized if a. the person(s) or group that generated the externality incorporate into their own private co

Veseljchak [2.6K]

An externality is internalized (a) if the person(s) or group that generated the externality incorporate into their own private cost-benefit calculations the external benefits (in the case of a positive externality) or the external costs (in the case of a negative externality) that third parties bear.

Explanation:

Internalizing the externality means transferring the burden or the cost of a negative externality (like pollution or traffic congestion) to inside(i.e external to internal).

Internalization of externality can be done through taxes, property rights, tolls, and government subsidies.

The only way of correcting an externalities is to "internalize" the third party cost involved but this market -driven approach is not feasible if the true monetary values cannot be determined.

An externality is internalized if the person(s) or group that generated the externality incorporate into their own private cost-benefit calculations the external benefits (in the case of a positive externality) or the external costs (in the case of a negative externality) that third parties bear.

4 0

3 years ago

If the mps in an economy is 0.1, government could shift the aggregate demand curve rightward by $40 billion by question 3 option

ikadub [295]

Answer:

increasing government spending by $4 billion.

Explanation:

A rightward shift of aggregate demand means that aggregate demand is increasing.

When the government increases spending, the effect on aggregate demand is given by ⇒ total change in spending x government spending multiplier

total change in spending = $4 billion
government spending multiplier = 1 / MPS = 1 / 0.1 = 10

effect on aggregate demand = $4 billion x 10 = $40 billion

7 0

3 years ago