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ale4655 [162]
3 years ago
13

John was given a choice of loans of $8,000 with the following characteristics: a) $1,200 in interest paid at the end of the peri

od b) $1,200 in interest paid at the beginning of the period c) $1,200 paid equally over the period with part of the principal retired each month Calculate the interest rate paid. In part (3) calculate using both the approximate method and the actual cost method assuming a one-year loan retired in 12 equal monthly installments of interest and principal.
Business
1 answer:
Natalija [7]3 years ago
5 0

Answer:

According to each choice, this is the result: a) 15% annual interest rate b) 35,29% annual interest rate and c) 26,62% annual interest rate.

Explanation:

In choice a) you receive 8.000 but paid 9.200 (8.000 capital + 1.200 interest). In choice b) Even though the loan has the same value, you receive 6.800 (8.000 capital -1.200 interest) and you have to pay 9.200 (8.000 capital + 1.200 interest). In choice c) You receive 8.000 but monthly you have to pay $766,67 of instalments for 1 year. So you will pay 9.200 in total at the end (8.000 capital + 1.200 interest) but early payments than choice a) and in finance money is value in time towards the reform and respect of the inmate population.

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3 years ago
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3 years ago
Over which of the following factors affecting profits does a business have the most control:
Paul [167]

The factor that affecting profits to a business that have the most control is the expenses.

<h3>How expenses affect profit?</h3>

The expenses play the major role to affect the profit of business organizations, as it is clear that if the firm incurred more expenses in various things that are not related to the business, then ultimately the profit level decreases, and vice-versa.

Therefore, option A is correct.

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2 years ago
In order to satisfy as many wants as possible, it is necessary to achieve productive efficiency:
charle [14.2K]

Answer:

(i) since otherwise resources are idle.

(ii) since it would be impossible to produce more of one thing without producing less of another.

Explanation:

When an economy has reached productive efficiency, all resources are being fully utilized such that if the country wants to produce more of one good, they would have to produce less of another.

It is important that a country achieves this level because it would mean that no resource is being left idle and there is no under-performance in the economy.

8 0
3 years ago
Company debt normally takes the form of ________, and it is an asset that can be traded anywhere at any time.
weqwewe [10]

Company debt normally takes the form.of global bonds which can be traced anywhere.

<h3>What is global bonds?</h3>

Global bonds is also called Eurobond and it is a form of bond that is granted or isdued and traded using a country currency in a country where the currency of the bond is denominated. Global bonds can have a fixed or floating rate with maturities which can be between one to 30years. This kind of bond normally take place outside a country's dormain.

Therefore, Company debt normally takes the form.of global bonds which can be traced anywhere.

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2 years ago
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