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Scilla [17]
3 years ago
11

Spencer took a 9 percent one-year fixed-rate loan to buy a new car. He expected to pay a real interest rate of 5 percent.

Business
1 answer:
solmaris [256]3 years ago
8 0
The answer I believe would be c
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Which of the following is not an example of a liability?
finlep [7]
D , because liability means to be responsible for something, especially by law.
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Which of the following would not be reported as current liabilities on the balance sheet?
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2 years ago
A credit card company advertises an APR of 15.3%, compounded daily. What
Art [367]

Answer:

B. 16.53%

Explanation:

The effective interest rate is the real interest rate charged by a bank or any other type of lender on a loan.

the formula to calculate effective interest rate = r = (1 + i/n)ⁿ - 1

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  • n = 365 days

r = [1 + (15.3%/365)³⁶⁵] -1 = 1.00419178³⁶⁵ - 1 = 1.165287621 - 1 = 0.165287621 ≈ 16.53%

7 0
3 years ago
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