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 principal offensive strategy options include all of the following EXCEPT:A.using a cost advantage to attack competitors on t
Len [333]

Answer:

All are options for offensive strategy

Explanation:

In this question, we are trying to select an option which is not in terms with the other options as regards what principal offensive strategy should be.

Now, what the term principal offensive strategy refers to is that it is a type of corporate strategy that pushes for changes within the industry. What we are trying to say is that, the principal offensive strategy pursues an agenda that is pushing for a change within the industry.

Efforts might be concerted or individual steps might be taken. Hence, various techniques or strategies are in place to be used.

Offensive strategy types includes, an end run strategy where a company does not want competition and thus explore the part of the market with little or none.

A preemptive one which seek to conform some advantages on the company as it is the first one based on demographics

Others include: an acquisition and a direct attack strategy

3 0
3 years ago
​Gulfcoast, Inc. purchased a van on January​ 1, 2019, for $ 900 comma 000. Estimated life of the van was five​ years, and its es
Zarrin [17]

Answer:

$740,200

Explanation:

Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.

It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset

Mathematically,  

Depreciation = (Cost - Salvage value)/Estimated useful life

Depreciation = (900,000 - 101,000)/5

= $159,800

Book value is the cost net accumulated depreciation

= $900,000 - $159,800

= $740,200

4 0
3 years ago
A sometimes short, sometimes extended period of declining output and living standards is referred to as a recession.
satela [25.4K]
I think its A) True.
8 0
3 years ago
Cadillac is preparing to build a new assembly plant in the United States. Although it would be slightly cheaper to build cars in
il63 [147K]

Answer:

A

Explanation:

Cadillac is responding to one of the geographic demographic trends in the United States, which has been migration into the Sun Belt. Building a plant in Louisiana, which is in the Sun Belt, would greatly reduce transportation cost, compared to a plant in Michigan.

4 0
2 years ago
When a bank accepts a checkable deposit from a customer, its deposits will increase and its excess reserves will:________
worty [1.4K]

Answer:

B). increase by the same amount of deposits

4 0
3 years ago
Other questions:
  • The ______ approach is a management approach that advocates the idea that a manager's attitude toward employees can affect produ
    15·1 answer
  • Ashley is single and lives with Barney, her boyfriend, and Candy, his 8 year old daughter. Ashley paid all of the support for he
    11·1 answer
  • Novak Corp. has 7400 shares of 6%, $50 par value, cumulative preferred stock and 148000 shares of $1 par value common stock outs
    6·1 answer
  • What are work content skills
    6·1 answer
  • Listed below are several terms and phrases associated with basic assumptions, broad accounting principles, and constraints. Pair
    12·1 answer
  • Classify each cost as being either variable or fixed with respect to the number of units produced and sold.
    5·1 answer
  • Destiny and Enzo engage in a business transaction. When a dispute arises, Destiny initiates a lawsuit against Enzo by filing a c
    10·1 answer
  • GTYOC Aviation had a profit margin of 8.00%, a total assets turnover of 1.5, and an equity multiplier of 1.0. What was the firm'
    6·1 answer
  • Which of the following is a characteristic of a certificate of deposit?
    15·1 answer
  • _________ _________ is often solved with the broker representing both sides designating a separate agent for both buyer and sell
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!