Answer:
$2592
Explanation:
Let the amount of loan applied for by both person be $x and $y respectively. If their loan differs by $72 each month, the second person would have applied for $(x+72) each month.
Amount applied by first person will be $x at the end of first month
Amount applied by second person will be $(x+72) at the end of first month
At the end of 36 months, the amount applied for by the first man will be $36x
At the end of 36 months, the amount applied for by the second man will be $36(x+72)
First person 'x' =$36x
Second person 'y' = $36(x+72)
If x pays $36x
y will pay $(36x+2592)
Their difference will become
$36x+$2592-$36x
= $2592
The person with the lower credit score will pay $2592 at the end of the 36-month loan
Answer:
17.5%
Explanation:
Effective annual rate is a yearly rate of return which includes the compounding effect. APR is the simple rate of return which is being paid on the principal amount that is being invested.
Formula for Effective Interest rate
EAR = ( 1 + APR/n )^n -1
0.18974 = ( 1 + APR/12 )^12 -1
0.18974 + 1 = ( 1 + APR/12 )^12
1.18974 = ( 1 + APR/12 )^12
(1.18974)1/12 = (( 1 + APR/12 )^12 )1/12
1.0146 = 1 + APR/12
1.0146 - 1 = APR / 12
0.0146 = APR / 12
APR = 0.0146 x 12
APR = 0.175 = 17.5%
Answer:
The correct statement related to the pro forma statements is:
The addition to retained earnings is equal to net income less cash dividends.
Explanation:
When the beginning retained earnings are increased by the addition to retained earnings, it means that the cash dividends have been subtracted from the net income. This addition is the leftover net income after offsetting the dividends. It increases the retained earnings by the end of the financial period.
Answer:
A) No, in the presence of a negative externality, since the monopolist produces less than the competitive quantity, it may end up producing the socially efficient quantity. However, in the case of a positive externality, since a competitive market produces too little, a monopolist will only exacerbate the problem.
Explanation:
Monopolists produce less than the competitive quantity (marginal revenue = marginal cost) but charge a higher price for their products. In case a negative externality is produced, then the competitive quantity should decrease and the monopolist might end up producing the socially efficient quantity.
Given the same scenario where the monopolist produces less than competitive quantity, but a positive externality is produced, then the socially efficient quantity should increase, but the monopolist will not increase their output.
