Answer:
January 1, 202x, bank loan obtained from Taylor Bank (9 months, 9% interest rate)
Dr Cash 117,933
Cr Notes payable 117,933
Explanation:
Since this is an interest bearing note that will be paid in less than a year, we should record it at face value. All current liabilities must be recorded at face value.
The correct answer is B and D.
B. Credit cards.
D. Personal loans.
Unsecured loans are not backed by collateral. Based on the financial history is how the lender decides if someone qualifies for a loan.
If someone defaults on unsecured loan then the lender can not take your property automatically.
Example of unsecured loans include, student loan, personal loan, and credit cards.
The unsecured loan is not good because the APR is higher than the secured one reason being there is no assets which underlines for the creditor to stop if someone does not pay.
Answer: b. 36 years under scenario A, versus 18 years under scenario B.
Explanation:
The Rule of 72 is a rule in finance that will allows for the calculation of how long it will take for an investment to double given its interest rate.
The time is calculated by dividing 72 by the interest rate in question.
Scenario A
= 72/2
= 36 years.
Scenario B
= 72/4
= 18 years.
Answer:
9.4%
Explanation:
Initial investment=$22,000+$22,000=$44,000
number of shares bought=$44,000/$110(the investor paid $55 out of every $110)
number of shares bought=400
Increase in share in one year=$110*8%=$8.80
loan interest on each share=$55*6.6%=$3.63
rate of return=(increase in share price-loan interest)/initial amount invested
rate of return=($8.80-$3.63)/$55
rate of return=9.4%
