1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
fiasKO [112]
3 years ago
13

Refer to the following lease amortization schedule. The five payments are made annually starting with the inception of the lease

. A $2,000 bargin purchase option is exercisable at the end of the five-year lease. The asset has an expected economic life of eight years.
Lease Payment Cash Payment Effective Interest Decrease in Balance Balance
34,600
1 8,000 ?? ?? 26,600
2 8,000 2,660 5,340 21,260
3 8,000 2,126 5,874 15,386
4 8,000 1,539 6,461 8,925
5 8,000 ?? ?? ??
6 2,000 182 1,818 0
What is the effective annual inerest rate?
A. 9%
B. 10%
C. 11%
D. 20%
Business
1 answer:
Bogdan [553]3 years ago
3 0

Answer:

B. 10%

Explanation:

The computation of the effective annual interest rate is shown below:-

Effective annual interest rate = Lease payment third effective interest ÷ Lease payment second balance × 100

= $2,126 ÷ $21,260 × 100

= 10%

Therefore for computing the effective annual interest rate we simply applied the above formula.

Hence the correct option is B.

You might be interested in
​________ is defined as the extent to which your authority is accepted on grounds of​ competence, vision, or other qualities. A.
lora16 [44]

Answer:

A. Legitimacy

Explanation:

Legitimacy  is defined as the extent to which your authority is accepted on grounds of​ competence, vision, or other qualities. This term is used mostly in the context of political science, mainly describing the right and acceptance of an authority and mostly deals with systems of governments or regimes where there are established individuals appointed authority.

5 0
2 years ago
Read 2 more answers
Sanibel Autos Inc. merged with its competitor Vroom Autos Inc. This allowed Sanibel Autos to use its technological competencies
Nimfa-mama [501]

Answer:

Horizontal integration

Explanation:

Integration is a strategy used by businesses to gain a better market share. It involves cooperating with other business owners to increase sales for both parties.

Horizontal integration is when businesses bate the same level in the value chain collaborate to increase profits.

In the give scenario Sanibel Autos Inc. merged with its competitor Vroom Autos Inc, and Sanibel Autos to use its technological competencies along with Vroom Autos' marketing capabilities to capture a larger market share.

The stage of value chain is when businesses prospect for customers. This interpretation enables them gain more customers.

8 0
3 years ago
Two types of deposit accounts are
andre [41]

Answer:

checking and saving

Explanation:

when you opening a new bank account. the bank will ask you want to open a checking and saving account or both

4 0
3 years ago
What are the implications of sharing confidential material information?
Norma-Jean [14]
The implication of sharing confidential material information is about having to keep a certain thing private in a way that it should be remained secret and hidden unless it has been given consent by the person who holds the privacy to be told to another party. It is not release carelessly and should be handled with care as it should be kept by the person withholding the information.
5 0
2 years ago
A demand curve:
Arada [10]

Answer:

3. indicates the quantity demanded at each price in a series of prices.

Explanation:

The demand for a product can be described as the quantity that buyers are willing and able to buys at a given price or different prices. As per the law of demand, an indirect relationship exists between the price and demand for a product. This relationship can be expressed in a graph format known as a demand curve or as a table format known as the demand schedule.

A demand curve is downward sloping. It demonstrates how demand varies at different prices.  A change in price cause movement along the demand curve. Low price results in high demand, while high prices result in low demand.

7 0
2 years ago
Other questions:
  • Assume that the required reserve ratio is 5 percent. If a commercial bank has $2 million cash in its vault, $1 million in govern
    12·1 answer
  • What is the main advantage of an electronic database
    8·1 answer
  • In denim fabric what do you call the yarn that runs vertically
    7·2 answers
  • ABC, Inc. produces a product that has a variable cost of $2.50 per unit. The company's fixed costs are $30,000. The product is s
    11·1 answer
  • The challenge of cost-benefit analysis and the tragedy of the commons are two problems associated with which type of good?
    7·1 answer
  • When referring to student loans, what is a grace period? A)The time period between graduating college and starting your first jo
    7·1 answer
  • A debit balance is the bank statement indicates?
    14·1 answer
  • Willamette Manufacturing estimated that its total payroll for the coming year would be $650,000. The workers' compensation insur
    14·1 answer
  • Theoretically, a company comparing multiple projects with similar investment requirements and durations would select projects wi
    7·1 answer
  • The social security deduction is 6.2 percent of a person's salary up to a limit of 102k the medicare deduction ais up to 1.45 pe
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!