Answer:
That low income can be enough because of either one of these two reasons (or the two at the sime time):
- A high proportion of subsidized good for low-income earners in developing countries: a consumer making $1,000 per year on average could benefit from subsidized food, housing, healthcare, and even transportation, allowing this person to devote most of his income to other expenses.
- Cheap credit available: this same person could not have enough money to pay for the television in cash, but could easily obtain a credit with low interest rates, and long-term payments.
Answer:
First option is the right choice.
Explanation:
He will not have as much money for college classes, because he will have to pay for the trailer and its maintenance.
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Answer:
Statement is true
Explanation:
Internal control over financial reporting was designed to give assurance related to financial statements preparation and authenticity of financial reporting.
Material weakness refers to inefficiency in internal control which could lead to misstatement in financial statement thereby making financial reporting unreliable. As such, even one material weakness would prove ineffective internal control over financial reporting.
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.

That is:

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.