Answer:
The amount due under quarterly compounding is higher by =$ 187.12
Explanation:
To determine the amount money by which the quarterly compunding is greater, we would compare the total sum due under the two compounding options.
This is done below:
Quarterly compounding
FV = A × (1+r)^n
PV - principal amount owed = 6,000
r- quarterly interest rate = 12%/4 = 3% per three month
n - number of quarters in 4 years = 4× 4 = 16
Loan amount due with interest after 4 years
= 6,000× (1.03)^(48) = 9628.23
Annual compounding
PV - principal amount owed = 6,000
r- annual interest rate = 12% =
n - number of years = 4
Loan amount due =6,000× (1.12)^(4) = 9,441.12
The amount due under quarterly compounding is higher by
= 9628.23 - 9,441.12
=$ 187.12
The negative incentive will cause consumers to purchase less of the good or service
Answer:
Commercial paper
Explanation:
Commercial paper is a term in business or economics that describes money-market security issued by corporation, which is considered unsecured, so as to obtain funds to meet short-term debt or obligation, such as financing of payroll, and inventories.
It is supported only by issuing bank or company promise to pay the face amount on the maturity date often 270 days or less, as specified on the note.
Hence, COMMERCIAL PAPER is a type of short-term financing that consists of unsecured promissory notes that mature in 270 days or less.
Answer:
c. how the firm has financed its assets as well as the firm’s ability to repay its long-term debt.
Explanation:
The Total Debt to Total Capital ratio is also known as the Debt to Equity Ratio. This ratio shows how much foreign money is used by the Company. Also important, it reveal the firms ability to repay its long term debt.
Anything that is possessed with funds or luxury or heirloom items