The house plan drawing titled elevation shows the outside views of the house.
Lack of financial resources and corruption
Answer: 12.67%
Explanation:
The effective interest rate on a borrowing is the net annual interest cost divided by the net available proceeds from the borrowing. Dichter gross annual interest cost is $240,000 ($2,000,000 x 12%). Dichter is required to maintain a compensating balance of $400,000, which is $200,000 more than their normal balance of $200,000. Therefore, Dichter earns incremental annual interest revenue of $12,000 ($200,000 x 6%) on the excess compensating balance. The net annual interest cost is $228,000 ($240,000 - $12,000). The net available proceeds from the borrowing is $1,800,000 ($2,000,000 loan less $200,000 excess compensating balance). Therefore, the effective annual interest rate is 12.67%
<u>Answer:</u>Money received today can grow at compound rate.
<u>Explanation:</u>
The time value of the money increases based on the interest rates. So dollar earned today has more value than dollar earned tomorrow. The time value of money concept is used in financial decision making. If $1 is received today it can be invested and the rate of interest on that investment is an added value to $1.
Money can earn interest so any amount of money received today is better than receiving the same amount in the future.
