Answer: Sky's effective interest rate on this loan is 8.39%.
In this question, we assume that interest is compounded annually.
Since Sky issues a non-interest bearing note, Star Finance will deduct 7 months' interest at 8% on the Face Value of the loan and pay the rest as principal to Sky.
Face value of the note $16 million
Discount Rate p.a 8%
Tenure of the note 7 months
[tex]Loan Amount received by Sky = Face Value - Discount on note[/tex]
So, Sky pays an interest of 0.746666667 on a sum of 15.25333333 for 7 months. This works out to a seven month interest of:
From this we can work out the effective interest rate for Sky as follows:
Answer:
54,000 chairs
Explanation:
The computation of the number of chairs at the beginning of the month is shown below:
Inventory at the beginning of the month = Units completed and transferred + ending inventory units - Units started
= 180,000 chairs + 21,000 chairs - 147,000 chairs
= 54,000 chairs
We simply applied the above formula to find out the inventory at the beginning of the month
Answer: 12 months
Explanation:
Let's assume I want to get a 2007 Volkswagen Jetta $12,000, which has a very good review. I'll need to save for 12months to get $6000 then add $6000 which would be given to me by my parents, at the end of 12months I would be able to get the 2007 Volkswagen Jetta which goes for $12,000.
Financial risk is the kind of risk connected to early-stage product developments that design thinking helps to reduce.
<h3>What is meant by risk?</h3>
Risk is the possibility of anything going wrong. It concerns the ambiguity surrounding the actions' consequences. Risk is the price a businessman pays to make money.
The risk connected to the organization's financial resources is known as financial risk. It appears during the product development process.
Therefore, it can be stated that financial risk is a type of risk that can be reduced by creative thinking when it comes to early-stage novel concepts.
Thus, Financial risk is the kind of risk connected to early-stage product development.
For more details about Risk, click here:
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