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amid [387]
3 years ago
8

Laura borrowed $48,000 at a 6% interest rate for 7 years. what was the total interest?

Business
1 answer:
Mrrafil [7]3 years ago
7 0
Principal Amount P = $ 48000 
Rate of interest r = 6% = 0.06 
Time interval t = 7 
Formula for Interest I = P x r x t => I = 48000 x 0.06 x 7 => I = 2880 x 7 
Total Interest for seven years would be $20,160
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If the equilibrium interest rate in the money market is 5%, then at an interest rate of 2% sellers of interest-bearing financial
expeople1 [14]

Answer: must offer higher

Explanation:

The financial world of investment is inter-correlated and products can sometimes be substitutes for one another. What this means is that if one financial product is not offering enough return on investment or is risky or for any other reason shakes their confidence in it, then investors tend to run to financial products that are perceived as better.

This is why when interest rates are stable and stocks are volatile, stock markets tend to lose value and bond markets sometimes gain value as investors leave the stock market and come to the bond market.

In the scenario described, the interest rate in the money market is 5%. If interest bearing financial assets are only at 2%, investors will leave/ not invest in those interest bearing bonds because the rate is lower. The sellers of such assets will therefore have to make them more attractive by increasing the the interest rates to find willing buyers.

4 0
3 years ago
The following information relates to next year's projected operating results of the Children's Division of Grunge Clothing Corpo
Fudgin [204]

Question:

The following information relates to next year's projected operating results of the Children's Division of Grunge Clothing Corporation:

Contribution margin.... 200,000

Fixed Expense.... 500,000

net operating loss..... (300,000)

If Children's Division is dropped, half of the fixed costs above can be eliminated. What will be the effect on Grunge's profit next year if Children's Division is dropped instead of being kept?

A) 50,000 increase

B) 250,000 increase

C)250,000 decrease

D) 550,000 increase

Answer:

Option A is correct

Increase in profit = $50,000

Explanation:

To determine whether or not it will be profitable to drop a loss making division, we compare the savings in fixed cost to the lost contribution from the division.

It is noteworthy that only the fixed cost attributed to division can only be saved should the division be shut down.

The analysis is done as follows:

                                                                              $

Lost contribution                                           (200,000 )

Savings in fixed cost (1/2× 500,000)          <u> 250,000 </u>

Net savings                                                 <u>   50,000</u>

Increase in profit = $50,000

3 0
3 years ago
Which statement is consistent with the law of demand?
Marianna [84]

Answer: B. A reduction in market price will lead to an increase in quantity demanded.

The law of demand states that normal goods have a higher demand at lower prices, because the demand curve is downward sloping which means that the lower the price the more of it people will be willing to buy, so a reduction in market price will mean that now more people are willing to buy that good. For eg a car normally sells $80,000 and 1000 cars are sold in a month, because of technological advances the company now sells the car for $60,000 because of this decrease in price more people will be willing to buy the car and the the monthly sales will be more than a 1,000 cars because at the price of $60,000 more people will be willing to buy this car.

Explanation:

5 0
3 years ago
To assess risk and return involved in a purchase decision, which practical questions should a potential buyer ask? Check all tha
vaieri [72.5K]
I believe the answer is: 

- What can go wrong?
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This question is asked to find out potential benefit from consuming the product

-Is the risk worth the return?
<span>The purchase should be made only if the potential benefit would outweigh potential risk

</span>
4 0
3 years ago
Read 2 more answers
Anyone got a link i can join and we can chat
kipiarov [429]

Answer:

lets do it lol

6 0
3 years ago
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