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Bas_tet [7]
3 years ago
15

Matt's Machine Company has borrowed $10 million for four months at 5.5% APR, using inventory stored in a field warehouse as coll

ateral. The warehouse fee is 0.5%, payable at the beginning of the loan. What is Matt's EAR?
Business
1 answer:
Mnenie [13.5K]3 years ago
8 0

Answer:

The Matt's EAR is 7.24%

Explanation:

The money borrowed by the company (L) = $10 million

Time period for the loan (T) = 4 months

Rate given (APR) = 5.5%

Per Month rate R=5.5%/12=0.46%

The fee of warehouse that is paid at the starting of the loan = 0.5%

Now we have to calculate the Matt’s EAR.

Warehouse fees =0.5%

So Fees F= 0.5% × L = 0.5% × $10 = $0.05 millions

Therefore, the Net amount we get N = L – F = 10 - 0.5 = $9.95 millions

Assume  r be the per month EAR

N*(1+r)^4 = L*(1+R)^4

9.95*(1+r)^4 = 10*(1+0.46%)^4

r=0.58%

EAR =(1+r)^12-1= (1+0.58%)^12-1 = 7.24%

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riadik2000 [5.3K]

Answer:

False

Explanation:

A proposed trade of 12.5 pounds of butter for 20 guns may NOT be mutually agreeable to both countries.

The main idea of comparative advantage is NOT trade by barter but buying and selling. Comparative advantage is a principle that states that a country should produce more of the goods and services which it can produce at a lower opportunity cost than that of trade partners and thereafter sell to those partners at a lower cost than they would have produced it themselves in the bid to be self reliant.

It is difficult to agree to such a deal of 12.5 pounds of butter for 20 guns because it is impossible to conclude that they are even or equal in value. The both countries should sell to each other as money is a common means of exchange.

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3 years ago
Suppose the United States has two​ utilities, Commonweath Utilities and Consolidated Electric. Both produce 20 million tons of s
Nookie1986 [14]

Answer:

​$4,000 million per year

Explanation:

Calculation for what will be the cost of eliminating half of the pollution to​ society

Cost of eliminating = (200 per ton x 20 million tons)

Cost of eliminating = ​$4,000 million per year.

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8 0
3 years ago
The village of Shelburne operates a nine-hole golf course as an enterprise fund. You are provided with the following information
xeze [42]

Answer:

$1,006,701

Explanation:

Preparation of the net position section of Shelburne’s of net position

First step is to calculate the ending balance

Net investment in capital assets:

Beginning balance$585,400

Add Leased equipment $200,000

Less Lease obligation $160,000

($200,000 − $40,000)

Less Sale of equipment $6,100

Add New equipment (lawnmower) $75,000

Less Note related to lawnmower $25,000 Less Depreciation and amortization $75,000

Ending balance$594,300

Now let Prepare the net position section of Shelburne’s of net position

VILLAGE OF SHELBURNE Golf Course Enterprise Fund

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Total Net Position $1,006,701

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Therefore the net position section of Shelburne’of net position will be $1,006,701

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2 years ago
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Elenna [48]

It can see how well certain people work together or by themselves and see how they react to certain things people say or do and see who they get along with.

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7 0
3 years ago
Which of the following is TRUE? " When a market price allocates resources, everyone who is able to pay the price gets the resour
sladkih [1.3K]

Answer: When a market price allocates resources, everyone who is able to pay the price gets the resource.

Explanation:

The market allocates prices to goods and services based on the scarcity of the said goods and services. This means that regardless of how scarce a good is, you can get it if you are willing to pay the price that it is being offered at.

For instance, if the price of tomatoes suddenly went up from $4 to $12 per pack, it means that tomatoes are now more scarce and not many people can afford it. If you can afford that $12 however, you will be able to get the tomatoes despite how scarce it is.

7 0
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