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4 years ago

Explain why the APR does not compare loans for different lengths of time.

Business

2 answers:

Hitman42 [59]4 years ago

7 0

Answer:

APR is Annual Percentage Rate. It is used to calculate the effective or the actual interest rate that is to be paid by the borrower to the lender. This term is used to coot be used compare different loans of the same length (or time period)

While calculating APR we must consider the number of days of the loan. Therefore, as the calculation of APR includes the time period in the form of number of days. We cannot compare two loans with different time period.

The APR is basically to see the finance cost you have to pay while getting a loan and it is one of the measures that is largely used in the industry to compare loans. As there are many fees and interest rate can be advertised in many ways to make it a lower interest rate. so APR makes it easier for a customer to make a decision.

Lena [83]4 years ago

3 0

<span>Some classes of fees are not included in the calculation of APR. Because these fees are not included,as some consumer advocates claim that the APR does not represent the total cost of borrowing.
Excluded fees may include: routine one-time fees which are paid to someone other than the lender and penalties such as late service without regard for the size of the penalty it will be imposed</span>

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2 years ago

Last year, Capriana Corporation (CC) had sales of $200 million, and its inventory turnover ratio was 5.0. The CC’s current asset

Brilliant_brown [7]

Answer:

quick ratio = 0.72

Explanation:

given data

sales = $200 million

inventory turnover ratio = 5.0

current assets totaled = $100 million

current ratio = 1.2

solution

we get here quick ratio so here

inventory turnover ratio = $\frac{sales}{inventory}$ ...............1

put here value

inventory = $\frac{200}{5}$

inventory = 40

and

now we get current liability

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put here value

current liability = $\frac{100}{1.20}$

current liability = 83.33

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quick ratio = $\frac{current\ assets - inventory}{current\ liability}$ .............3

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3 years ago

Love It Industries manufactures custom-designed playground equipment for schools and city parks. Love It expected to incur $ 78

faltersainse [42]

Answer:

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= $19

Explanation:

In this scenario, we need to add the direct material cost, direct labour cost and manufacturing overhead in order to obtain the total manufacturing cost. Overhead absorption rate is calculated from the company's budget provided in the question. Overhead is absorbed on direct labour hours. The direct labour hourly rate of $38 was provided in the question

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A bond with a face value of $ 90000 and a quoted price of 104 has a selling price of: (Round your final answer to the nearest

Alecsey [184]

Answer:

A. $93,600

Explanation:

Data provided as per the question below:-

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The computation of selling price is shown below:-

Selling Price = Face value × Quoted price ÷ 100

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= $90,000 × 1.04

= $93,600

Therefore for computing the selling price we simply applied the above formula.

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