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gulaghasi [49]
3 years ago
15

Elliott Credit Corp. wants to earn an effective annual return (EAR or EAIR) on its consumer loans of 17.1 percent per year. The

bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers?
Business
1 answer:
Yuri [45]3 years ago
4 0

15.79 % is the rate that bank is requred to give to potential borrowers

<u>Explanation:</u>

\mathrm{EAR}=(1+\mathrm{APR} / \mathrm{m})^{\mathrm{m}}-1

A P R=m\left[(1+E A R)^{1 / m}-1\right]

\mathrm{APR}=365\left[(1+.171)^{1 / 365}-1\right]

A P R=365\left[(1.171)^{0.00273972602}-1\right]

\mathrm{APR}=365 *[1.00043258-1]

A P R=365 * 0.00043258, APR = 0.1578917  

Or 15.79% (it is rounded off )

<u>Where: </u>

EAR = effective annual rate

APR = Annual percentage rate

M = number of compounding

Therefore, the interest of rate that the bank is required by law in order to report to all the potential borrowers is 15.97%

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Answer:

GDP is not affected by Pete's production of the jewelry box.

Explanation:

Pete is a woodworker and works 20 hours to prepare a jewelry box to gift his wife. If Pete prepares this jewelry box to sell and earn revenue, this will be considered in GDP but in this case Pete prepares a jewelry box to give his wife as his wife's birthday gift.

All types of gifts received or given in kind are not included in Gross Domestic Production.

6 0
3 years ago
Suppose there are two cities that have rent controlled apartments. In one city (Albany) all apartments are subject to rent contr
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Answer:

Which of the following is most likely to be true?

A

Explanation:

A) It will be difficult to find a rent-controlled apartment in Albany or Halftrack; rents for the Halftrack apartments not subject to controls will be higher than they would be without rent control

4 0
3 years ago
Net credit sales for the year are $750,000. The end of year accounts receivable balance is $160,000. The allowance for doubtful
alexandr402 [8]

Answer: $3000

Explanation: Allowance for doubtful accounts is the contra account to accounts receiveable when all the bad debts need to be accounted for. The bad debts reduces the accounts receivable line but all bad debts are actually deducted from the allowance for doubtful accounts.

The allowance for doubtful accounts for that year is calculated as 5% of the accounts receivable balance. This amounts to $8000 (160000 x 5%) before bad debts have been accounted for. Allowance for doubtful accounts moves in the opposite direction as accounts receivable because it is a contra account to this line item. At the end of the year before year end closing entries are done, and after the bad debts have been accounted for, the balance on the allowance for doubtful accounts is $5000.

This means that bad debts for that year is:

8000 (balance before bad debts have been accounted for)

- 5000 (balance after bad debts have been accounted for)

= $3000.

5 0
3 years ago
. Archie can claim total deductible medical expenses that exceed 7.5% of his adjusted gross income. a. True b. False
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The correct answer is; False, as of 2020.

Further Explanation:

In the previous tax years, 2017-2018, this statement would of been correct. Archie could of claimed his total deductible medical expenses that exceeded 7.5% of his AGI. However, the laws changed for 2019 and this is no longer the correct way to claim medical expenses.

For the 2019 taxes, a person can only deduct any expenses that amount to over 10% of the total AGI per person. The deduction can be figured by taking your AGI and multiplying this total by 10%. The deductions will also have to be itemized before claiming.

Learn more about medical deductibles at brainly.com/question/1845375

#LearnwithBrainly

3 0
3 years ago
Handcrafts &amp; Hobbies Store agrees to hire Iliana for one year at a salary of $600 per week. When Handcrafts &amp; Hobbies ca
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Answer:

The difference between the wages at the two jobs plus 150.00.

Explanation:

There was a contract of one year and as per Severance pay h and H has to pay this amount.

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