1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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%

You might be interested in
What is the net energy yield for producing oil in 1954?
raketka [301]
<span>The net energy yield underlies various energy aggregation in economics and ecology such as tropic dynamics, national energy accounting and energy input output modelling in economics and the yield in 1954 can be derived from all this data.</span>
4 0
3 years ago
Which of the following condition will both consumers and sellers benefit?
victus00 [196]
Answer: Option C) When supply equals demand.

The most common supply curve decreases with price. The most common demand curve increases with price. The point at which supply and demand curves intercept each other is the equilibrium point. At that point (equilibrium), there are consumers who are paying less than what they are willing to pay (generating a consumer surplus) and there are producers who are selling at a price that is higher than what they are willing to receive (generating a producer surplus), then both consumer and producers benefit.
5 0
3 years ago
Financial risk management is a component of enterprise risk management (ERM). ERM encompasses the methods and procedures used by
KiRa [710]

Answer:

Business risk.

Explanation:

Business risk (uncertainty associated with the ability to forecast EBIT due to factors such as sales variability and operating leverage).

6 0
3 years ago
Why is there scarcity even in an affluent country like the united states?.
Law Incorporation [45]

Answer:

THERE ARE SCARCITY EVEN IN AN AFFLUENT COUNTRY LIKE THE UNITED STATES BECAUSE WANTS ARE LIMITED BUT NEEDS ARE UNLIMITED. SOME PEOPLE ARE POOR WHILE OTHERS ARE WEALTHY

7 0
2 years ago
Real GDP is the value of final goods and services produced in a year expressed in the prices of that same year. during a recessi
laila [671]

Answer:

The correct answer is: expressed in the prices of a base year.

Explanation:

Real GDP is an inflation-adjusted measure to calculate changes in economic output. It calculates the value of final goods and services produced in an economy in a year expressed in the prices of a base year.

Real GDP does not include changes in the price of products as it is calculated at constant prices.  

Nominal GDP, on the other hand, is calculated on the basis of current prices. It includes changes in prices and is not inflation-adjusted. That is why real GDP is preferred over nominal GDP.

6 0
3 years ago
Other questions:
  • At Milton farms, where a large part of the management comes from the same sociocultural background, many employees of diverse et
    5·1 answer
  • Carlos owns a hardware store he currently is not using any software to track what he has in the store and wanted to sentences de
    10·1 answer
  • The following information pertains to Guy’s Gear Company: Sales $ 75,000 Expenses: Cost of Goods Sold $ 47,500 Depreciation Expe
    8·1 answer
  • Describe some techniques that sellers use to differentiate their products.​
    13·1 answer
  • Mary works in the accounting department of new trends sales company. her job includes reviewing expense reports submitted by man
    6·1 answer
  • After a customer buys a computer or receives service from Top Computers and Service, a service representative contacts each cust
    7·1 answer
  • A firm expects to sell 25,200 units of its product at $11.20 per unit and to incur variable costs per unit of $6.20. Total fixed
    9·1 answer
  • True or False? Given that so many countries around the world already use care management and evidence-based medicine in their he
    15·2 answers
  • A consumer products firm with a functional structure is expanding from a single product line into several diverse product groups
    7·1 answer
  • Which type of business constituent has titles such as President and CEO?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!