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sashaice [31]
4 years ago
5

In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as $20,000 and the i

nterest rate is 10%, the borrower "pays" 0.10 × $20,000 = $2,000 immediately, thereby receiving net funds of $18,000 (=$20,000-$2,000) and repaying $20,000 in a year. "What is the implied rate on this loan?"a. 10%b. 9.5%c. 11.1%d. 20%
Business
1 answer:
Vikki [24]4 years ago
8 0

Answer:

c. 11.1%

Explanation:

The formula to compute the implied rate is shown below:

Future Value  = Present Value ×  (1 + Interest rate)

$20,000 = $18,000 × (1 + Interest rate)

$20,000 = $18,000 ×  (1 + Interest rate)

So,  (1 + Interest rate) = 1.1111

So, the interest rate is

= 1.1111 - 1

= 0.1111 or 11.1%

We simply applied the above formula to determine the implied rate on this loan

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What should be the current price of a stock if the expected dividend is $4.00, the stock has a required return of 15%, and a con
TiliK225 [7]

Answer:

current price of stock = $40

Explanation:

given data

expected dividend = $4.00

required return = 15% = 0.15

growth rate = 5% = 0.05

to find out

current price of stock

solution

we get here current price of stock that is express as

current price of stock = \frac{D}{r-g}   ....................1

here r is required return and g is growth rate and D is expected dividend

put here value in equation 1 we get

current price of stock = \frac{4}{0.15-0.05}

current price of stock = $40

7 0
4 years ago
Suppose you purchased 500 shares of Jet-Electro Corporation stock at a price of $22.50 per share. One year later, the shares are
viva [34]

Answer:

C) 0.0 percent

Explanation:

The net return on any investment is what we receive from the investment in addition to the purchase price paid.

In the given instance the investor pays $22.50 per share as an investment cost, to acquire such shares. Number of shares purchased = 500

Now at the end of the period the shares are sold for $21 each

Also the dividend per share received is $1.50

Thus, total return = $21 + $1.50 = $22.50 per share.

This is exact same as that of the investment price.

Thus net return = Total benefits - Cost = $22.50 - $22.50 = $0

Since net return is $0 the value of return in percentage shall also be $0.

6 0
4 years ago
The Accounts Payable account has a $3,700 credit balance. An entry for the payment of $1,350 on the amount owed is recorded and
RUDIKE [14]

Answer:

a $2,350 credit balance

Explanation:

Accounts payable is a liability account. As such, when a credit entry into the account increases the balance and a debit entry reduces the balance in the account.

For the payment of an amount owed, it will be posted as a debit.

Therefore the balance in the account after the posting

= ($3700) + $1350

= ($2350)

Note the parenthesis was used to indicate a credit item.

3 0
3 years ago
Margaret and Jack are working on a high-priority project with a tight deadline. When Margaret is unable to meet the deadline, Ja
Dahasolnce [82]

Answer:

The correct answer is The fundamental attribution error.

Explanation:

The Fundamental Attribution Error (EFA) is a phenomenon that occurs when we try to explain our own behavior with respect to that of others. Many times we find it hard to understand why a person acts as he acts. And we do not stop to look for the reasons that are the basis of their behavior.

A very clear example is to suspend an exam. If you have to explain to someone why you have suspended the exam, you probably mean that it was very difficult, that you had not rested, did not have time to study or even that the teacher suspended you.

Now imagine that it is another person who suspends and you have approved. Surely if you have to explain why you have suspended you will explain that it is a bit vague, that you have not studied enough and even that you were not interested in approving.

3 0
3 years ago
Which selling method is most likely to irritate potential customers?
ser-zykov [4K]

Answer:

"Cold calling" or "cold messaging" is of the most irritating methods to the potential customers.

This is because cold calling tends to be very long. It is time wasting and frustrating to the listener, especially when they are not interested in the advertisement, acknowledgement of the products. In addition, this method has the characteristic of unprofessional and like spammer. Cold calling makes every listener the same and it can make the potential customers irritated feeling they are not respected by the firm.

6 0
4 years ago
Read 2 more answers
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