Answer:
effective interest rate
Explanation:
The effective interest rate is the rate that an investor actually earns from investing in a bond. The effective interest rate is usually different than the interest rate stated on a bond (e.g. coupon rate).
It is also called market interest rate because bonds are sold in secondary markets at a different price than face value (usually bonds are sold at a premium or at a discount). That price at which the bonds are sold determine if the effective interest rate will be higher or lower than the stated interest rate of the bond.
Answer:
The answer is "Option a".
Explanation:
In this question, each year Barb pays back the interest received. It will add depth to its principle during the first year. In this, the actual case, the interest for $3000 at 5% for the first year = $150, would be added to $3 000, and $31,50. In the second year, Barb should gain a 5% interest on $3150. Throughout the case of Andy, the second principle will be $3000 like it was at the end of the first year. Thus, Barb's second year is going to have more interest.
- In choice b, It is wrong because Andy wants to withdraw its interest, this won't get irritated. He would also receive less interest per year than Barb.
- In choice c, Its interest would not be the same for both in the first year.
- In choice d, It is wrong because Andy wants to withdraw interest each year, no compound interest will arise.
- In choice e, No, not that. Andy won't earn the interest compounded so, the Barb will receive the interest multiplied. Therefore, for the five-year duration, Barb can earn more interest.
Answer:
$12,200
Explanation:
Calculation to determine the amount of interest expense was recorded for the period of January 1 to April 30, 2018
Interest expense=$305,000*12%*4/12
Interest expense=$12,200
Therefore the amount of interest expense was recorded for the period of January 1 to April 30, 2018 is $12,200
I agree with the person above - being debt free within the next 15 years in an example of a long-term goal.
A short-term goal would involve hours, days, or even months. But here, we're talking about years, at least 15 of them, which is a long time during which many things can change. So it is definitely a long-term goal, given that it won't expire any time soon.
