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
DanielleElmas [232]
3 years ago
13

Surreal Corp. has borrowed to invest in a project. The loan calls for a payment of $17,500 every month for three years. The lend

er quoted Surreal a rate of 8.40 percent with monthly compounding. At what rate would you discount the payments to find amount borrowed by Surreal Corp.
Business
1 answer:
Marianna [84]3 years ago
7 0

Answer:

The rate at which to discount the payments to find sum borrowed is 12.68%

Explanation:

The discount rate to be used in computing the sum borrowed can e derived from the effective annual rate formula below:

Effective annual rate = (1 + Quoted interest rate/m)^m - 1

quoted interest rate is 8.40

m is the number of months in a year when compounding is done which is 12

effective annual rate=(1+8.40%/12)^12-1

effective annual rate=(1+0.01)^12-1

effective annual rate=(1.01)^12-1

effective annual rate=1.12682503 -1

effective annual rate=0.12682503=12.68%

You might be interested in
The major advantage of margin trading is the
chubhunter [2.5K]

Answer:

The appropriate response is "Margin trading can influence a far bigger place".

Explanation:

  • The given topic Trading on margins offers shareholders not just the possibility of taking more opportunities unlike average, and perhaps moreover versatility for purchasing many more securities.
  • Whilst also investing even from one's dealer, clients can leverage a far bigger role and use only existing leverages.
8 0
3 years ago
Government programs in which money is taken from one group is given to another are called
alexandr1967 [171]

Answer:

I believe its Transfer Payments (or government transfer)

Explanation:

A transfer payment is a redistribution of income and wealth by means of the government making a payment, without goods or services being received in return.

6 0
3 years ago
The previous graph you constructed should show that net exports from Japan would be negative if the price of yen increased to a
lubasha [3.4K]

Answer:

0.1 yen per dollar?  if i got it wrong sorry

Explanation:

Since 10 divided by 1000 would be 0.1 yen wait is it the other way around?

4 0
2 years ago
Barney takes his wife Betty to a Porsche dealership and tells her to pick out whichever car she wants as a birthday present. She
amid [387]

Answer:

The car should be given to Betty because Barney already have a contract with the dealer and he has stated explicitly in the terms to the contract that the car belongs to his wife. Porsche dealer should be prosecuted for breach of contract in the court of law.

Explanation:

8 0
3 years ago
If the Fed increases the money supply and as a result, households and firms buy more short-term financial assets, the prices of
Ede4ka [16]

Answer:

rise, fall

Explanation:

Money supply refers to the total value of money in the form of currency and other liquid instruments available in an economy.

It includes cash, coins, and other near money substitutes.

Money supply is measured as it influences various activities taking place all around us in the economy.

A larger money supply leads to <u>fall</u> in interest rates. As a result, the prices of those short-term financial assets will <u>rises.</u> Conversely, smaller money supplies leads to rise in interest rates which in turn leads to fall in prices of the short-term financial assets.

3 0
3 years ago
Other questions:
  • Dusty would like to buy a new car in six years. He currently has $13,500 saved. He’s considering buying a car for around $17,500
    15·1 answer
  • During the year, a $1,000,000 lawsuit was filed against a U.S. company for unsafe working conditions. Management and the attorne
    12·1 answer
  • Of the steps listed below, which step comes after the other three?
    12·1 answer
  • Blossom Co. leased machinery from Young, Inc. on January 1, 2020. The lease term was for 8 years, with equal annual rental payme
    6·1 answer
  • You spend $5 on materials to make a scarf. You think you have added $10 of value, so you set the price at $15. Nobody buys the s
    5·1 answer
  • Ajak Corporation owns​ 85% of the single class of Utech Corporation stock. Utech Corporation owns​ 35% of Tech Corporation. Ajak
    5·1 answer
  • A mutual fund had NAV per share of $19.00 on January 1, 2016. On December 31 of the same year, the fund's NAV was $19.14. Income
    11·1 answer
  • You think hard about how to allocate the next hour between watching football and going for a walk. You decide to spend the first
    15·1 answer
  • Burns Corporation's net income last year was $99,200. Changes in the company's balance sheet accounts for the year appear below:
    12·1 answer
  • cnn.com runs a story reporting that the consumer confidence index has risen. having taken an economics class, you predict that s
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!