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kirza4 [7]
3 years ago
13

1. Russell's of Townville needs to borrow $48,000 for one year. The bank requires a 10 percent compensating balance on any amoun

t borrowed and an annual interest rate of 9 percent. What is the effective interest rate on this loan? A. 8.9% B. 8.6% C. 9.4% D. 10.0%
Business
1 answer:
babunello [35]3 years ago
8 0

Answer:

D. 10.0%

Explanation:

As the bank reqiresd 10% compensating balance the actual amount unrestricted for the loan is 48,000 x (1 - 10%) = 43,200

and from this amount we have to solve for the effective rate:

principal x rate = interest

48,000 x 0.09 = 4,320

now we divide the interest over the actual principal to know the effective rate:

4,320 / 43,200 = 0.10 = 10%

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Yes, Heather did, in fact, experience an obstacle which influenced the choice of her career. The psychosocial stress was too much for her
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3 years ago
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​Kim's Retail had 800 units of inventory on hand at the end of the year. These were recorded at a cost of $ 13 each using the la
nataly862011 [7]

Answer:

the Merchandise Inventory will be credited by $3200

Explanation:

given data

Retail  inventory = 800 units

recorded cost = $13

replacement cost = $ 9 per unit

selling price charged = $15

to find out

the Merchandise Inventory will be

solution

we know here market  is equal to current replacement cost that is $9

and here we can say

market is here less than cost

so inventory will be valued at Market

so we find

down in inventory is = 800 × ( 13 - 9 )

down in inventory is = 3200

so the Merchandise Inventory will be credited by $3200

5 0
3 years ago
According to the insurance institute for highway safety injuries the most common injury in the US due to front or rear crashes c
vfiekz [6]

Answer:

6

Explanation:

The Insurance Institute for Highway Safety (IIHS) is known to be an independent body or organization. It is a nonprofit scientific and educational organization solely aimed to reducuction of the losses and deaths, injuries and property damage as a result from motor vehicle crashes. In US, due to front or rear crashes cost more than 6 billion dollars a year is being spent on injury.

5 0
3 years ago
Ceramic Customs Co. requires a specific type of ceramic to make custom-made tiles. Since only one supplier makes that particular
kramer

Answer:

a. The supplier has more bargaining power than the firm.

Explanation:

This is an example of one of Porters' five forces. The supplier has a monopoly and thus entertains a high market share. This means that the supplier has more bargaining power than the firm as if the firm wants the ceramic there are no alternative options available for the firm; however, if the firm does not want supplies, the supplier can find plenty of firms that may need the ceramic thus making supplier more powerful than the firm.

Hope that helps.

4 0
3 years ago
What is the value today of receiving $5,000 at the end of six years, assuming an interest rate of 8% compounded semiannually?
Ulleksa [173]

Answer:

$3,122.96

Explanation:

Future value = 5000

i = 8%

n = 6

m = 2

Present Value = FV(1+i/m)^mn

Present Value = 5,000(1+0.08/2)^-2*6

Present Value = 5,000(1.04)^-12

Present Value = 5,000 / (1.04)^12

Present Value = 5,000 / 1.6010322

Present Value = 3122.985284118583

Present Value = $3,122.96

6 0
3 years ago
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