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Aliun [14]
3 years ago
6

If Analog Computers can borrow at 8% annually for three years, what is the effective rate of interest on a $1,000,000 loan where

a 15% compensating balance is required?
Business
1 answer:
tankabanditka [31]3 years ago
4 0

Answer:

effective interest rat = 0.094 or 9.41%

Explanation:

effective rate of interest is given aseffective\ interest\ rate = \frac{borrowing\ interest \ rate}{1 -compensating\ balancing \requirement \rate}

borrow interest rate = 8%

compensating rate  =15%

effective interest rate = \frac{8%}{1 -15%}

                                    = \frac{0.08}{1-0.15}

         effective interest rat = 0.094 or 9.41%

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Explanation:

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3 years ago
​Electric, Inc. was incorporated on January​ 1, 2016. Electric issued​ 4,000 shares of common stock and​ 1,200 shares of preferr
S_A_V [24]

Answer:

$57,600

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The computation of the total amount paid to preferred shareholders are shown below:

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8 0
4 years ago
Emily is deciding whether to buy the same designer jacket her friends have. The jacket is much more expensive than a similar one
Andreyy89

Answer: Is advertising influencing her?

What are her motivations?

Has she compared prices?

Is she buying at the right time?

Explanation:

The questions that she should consider before she buys the jacket include:

• Is advertising influencing her?

• What are her motivations?

• Has she compared prices?

• Is she buying at the right time?

Before buying the jacket, the question "Will her sister like the jacket too?" shouldn't be considered as she is looking to satisfy her own needs and not that if her sister and in this case, he sister shouldn't have an impact on her buying decision.

3 0
3 years ago
who is the economist responsible for developing the basic concepts of the national income accounting system?
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The bank can repossess the car and if anything is used as collateral they can claim that as well. It is best to not get yourself in debt you cannot pay off.

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As shown below

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Financial advisors recommend that you keep your debt-to-income ratio under 30%.

3 0
3 years ago
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