Answer: a. $53500
b. A. The loan officer should offer the company an add-on interest loan because there is a high risk that the company will not be able to repay the principal on the loan at the end of the project's life.
Explanation:
a. Based on a 360-day year, the monthly payment for each loan for November will be:
Principal = $600,000
Interest rate = 10%
Simple interest = (P×R×T)/100
= (600000 × 10× 1) /100
= $60000
The simple interest per month which will also be thesame for Novemeber will be:
= 60000/12
= $5000
Since add on interest is 7%, then the interest will be:
= 7% × $600,000
= 0.07 × $600,000
= $42000
Therefore, the interest for month of November will be:
=(600000 +42000)/12
= $642000 / 12
= $53500
b. The answer that best evaluates the statement given is option B. It should be noted that since it's a startup company, there may be challenges in repaying the loan. Therefore, the best scenario will be that the loan should be given on add on interest basis.
Yes the firm should the 1 percent decrease of the capital won’t effect too much. So yes.
Answer:
D) A multiple contraction of the money supply greater than the amount of the securities sold.
Explanation:
When the fed sells securities in the open market, it obtains dollars, and keeps those dollars from circulating, in other words, in reduces the money supply.
The contraction in the money supply is greater than the amount of securities sold because of the money multiplier.
When the fed sells securities, it reduces the monetary base, which is equal to:
B = C + D
Where:
B = Monetary base
C = Cash in hands of the public
D = Demand deposits
And the money supply is equal to:
M = m x B
Where:
M = money supply
m = money multiplier
B = Monetary base
Because of the money multiplier, any contraction or expansion in the monetary base has a multiplying effect in the money supply.
The correct answer is A. processes
Just took the test and got it correct
Answer:
Option 2 is the best option (they have tenacity but know...)
