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
BartSMP [9]
3 years ago
14

Suppose People's bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $

250.00 at the end of each quarter and then pay off the principal amount at the end of the year. What is the effective annual rate on the loan?
a. 9.37%
b. 8.46%
c. 10.38%
d. 8.90%
e. 9.86%
Business
1 answer:
Vlad1618 [11]3 years ago
6 0

Answer:

c. 10.38%

Explanation:

Loan Amount = $10,000

Quarterly Interest payment = $250

Interest Payment for the year = $250 x 4

Interest Payment for the year = $1,000

Nominal interest rate = ($1,000 / $10,000) x 100 = 10%

Nominal interest rate = r = 10%

Number of periods = m = 4

Effective Interest rate = [ ( 1 + r/m )^m]-1

Effective Interest rate = [ ( 1 + 0.1/4 )^4] -

Effective Interest rate = [ ( 1 + 0.025 )^4] -1

Effective Interest rate = 10.38%

You might be interested in
By lowering production costs, _____ help domestic producers compete against foreign imports. subsidies duties quotas tariffs
MrRa [10]
By dropping production costs, subsidies aid domestic manufacturers strive in contrast to foreign imports and attainment export markets. Subsidies proceeds many forms as well as cash grants, low interest loans, tax breaks and government equity contribution in domestic companies. Government subsidies should be paid for or usually by taxing people and businesses. The biggest protectors of the agricultural subsidies are the industrialized nations of the world and the consequence of subsidies is subsidies protect inefficient domestic producers. Conferring to the strategic trade policy, subsidies can assist a company to attain a first mover benefit in an developing industry. Non-tariff obstructions which comprise of subsidies, quotas, voluntary export restraints and anti dumping duties. 

4 0
3 years ago
When you are writing to reject a job​ application, which of these is considered the BEST​ strategy?
Hunter-Best [27]

Answer:

D. Use an indirect approach to soften the blow.

Explanation:

Even though there really is no perfect method or strategy when rejecting a job application, many companies usually agree on using an indirect approach to soften the blow. This saves the receiver of the rejection from the pain that they may otherwise feel from a direct rejection, since a direct approach will make them feel as though the rejection is completely their fault.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

3 0
3 years ago
1._____________is the difference between earned income and costs. 2. An organization that produces or distributes a good or serv
Anestetic [448]

Answer:

1. Profit

2. Business

Explanation:

      Profit may be defined as the income which is distributed to the owner in the production process of a profitable market. In other words it is the extra revenue generated by the company that is in excess of the money spend as expenses. It is the difference between the earned income and the costs.

        Business is a regular work or occupation or trade of a person. It refers to an organized efforts as well as the activities of any individual to produce the goods and services and sell them for a profit.

7 0
3 years ago
A U.S. firm holds an asset in Great Britain and faces the following scenario:
Lady_Fox [76]

Answer:

C) Sell £2,278.13 forward at the 1-year forward rate, F1($/£), that prevails at time zero.

Explanation:

given data

                     State 1           State 2               State 3

Probability      25%            50%                      25%

Spot rate      $ 2.50 /£    $ 2.00 /£            $ 1.60 /£

P*                   £ 1,800       £ 2,250             £ 2,812.50

P                     $4,500          $4,500               $4,500

solution

company holds portfolio in pound. so to get hedge, they will sell that of the same amount.

we get here average value of the portfolio that is

The average value of the portfolio = £ (0.25*1800 + 0.5*2250 + 0.25*2812.5)

The average value of the portfolio = 2278.13

so correct option is C) Sell £2,278.13 forward at the 1-year forward rate, F1($/£), that prevails at time zero.

3 0
4 years ago
You are advising a local nonprofit on strategy. The nonprofit supports cancer research and relies entirely on donations. You rec
Aleksandr [31]

Answer:

E). Use inexpensive digital marketing tools to inform the community about an upcoming fundraising event.

Explanation:

The 'use of inexpensive digital marketing tools for informing the community regarding the approaching fundraising event' would be the most appropriate and feasible for the non-profit organization as it would be the most reasonable for the firm. A big-budget expense on marketing the event would neither be affordable due to the small budget nor beneficial for such an organization. Thus, using inexpensive digital marketing would publicize the event on an affordable budget and prove helpful in gathering good collections in the event. Hence, <u>option E</u> is the correct answer.

5 0
3 years ago
Other questions:
  • Jessica does not believe that the methods and processes for determining salary increases in her company are fair. As per this ex
    13·1 answer
  • Which term refers to the beginning of the constitution?
    14·1 answer
  • Was the first nonsedating antihistamine drug; however, it has been taken off the market due to adverse effects when combined wit
    15·1 answer
  • Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells 9,000 widgets a month. Widge
    12·1 answer
  • Cost Leadership Strategy is one strategy to gain a competitive advantage.
    7·1 answer
  • What is the proper adjusting entry at December 31. the end of the accounting period, if the balance in the prepaid insurance acc
    5·1 answer
  • Which of the following is not a reason for passing the equal pay act of 1963​
    14·1 answer
  • Ghost, Inc., has no debt outstanding and a total market value of $240,000. Earnings before interest and taxes, EBIT, are project
    7·1 answer
  • Define your seven weakness and seven strengths with reason
    9·1 answer
  • Tulane Tires wrote a contract for a $104,000 sale of tires to the new Garden District Tour Company. Tulane only anticipates a sl
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!