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2 years ago

If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied______________.

Business

1 answer:

Ivenika [448]2 years ago

7 0

Answer:

d. there is a shortage and the interest rate is below the equilibrium level.

Explanation:

If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied, there is less money available for loans than the required, which characterizes a shortage. Higher interest rates decrease the demand while lower rates increase demand; if demand is higher than supply, the interest rate is lower than the equilibrium rate.

Therefore, there is a shortage and the interest rate is below the equilibrium level.

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P & G Auto Parts sells parts to AAA Car Repair during 2018. P&G offers rebates of 2% on purchases up to $60,000 and 3% o

nirvana33 [79]

Answer:

c. credit to Sales Revenue for $72,380.

Explanation:

Since AAA Car Repair's total purchases exceed $200,000 for the year, they are eligible for the 3% rebate on purchases above $60,000. Only the fraction of the purchase over $60,000 should get the 3% rebate, the first $60,000 get the 2% rate.

Therefore, the total sales amount recorded by P & G Auto Parts by selling $74,000 of parts to AAA is:

$S=(1-0.02)*\$60 + (1-0.03)*(\$74-\$60)\\S=\$72.38$

There should be a credit to Sales Revenue for $72,380.

5 0

3 years ago

Yields on short-term bonds tend to be more volatile than yields on long-term bonds. Suppose that you have estimated that the yie

Alika [10]

Answer:

70.1754386

Explanation:

The calculation of the number of the futures contract to sell as follows:

Portfolio value $1,000,000

Face value $100

Units. $10,000

Maturity portfolio. 5

Modified duration. 4

Modified duration of T bonds 9

Yield on portfolio. 0.000015

Yield on T bonds. 0.00001

Future price of the bonds $95

Loss of portfolio. $60

Decline in fut T bond price $.0086

Per value contract. $86

Number of future contract to sold 70.1754386

7 0

2 years ago

Foutz Corporation has entered into a 8 year lease for a piece of equipment. The annual payment under the lease will be $3,600, w

IRINA_888 [86]

Answer:

$17,721

Explanation:

The computation of the Net present value is shown below

The discount factor should be computed by

= 1 ÷ (1 + rate) ^ years

where,

rate is 17%

Year = 0,1,2,3,4 and so on

Discount Factor:

For Year 1 = 1 ÷ 1.17^0 = 1

For Year 1 = 1 ÷ 1.17^1 = 0.8547

For Year 2 = 1 ÷ 1.17^2 = 0.7305

For Year 3 = 1 ÷ 1.17^3 = 0.6244

For Year 4 = 1 ÷ 1.17^4 = 0.5377

For Year 5 = 1 ÷ 1.17^5 = 0.4561

For Year 6 = 1 ÷ 1.17^6 = 0.3898

For Year 7 = 1 ÷ 1.17^7 = 0.3332

So, the calculation of a Present value of all yearly cash inflows are shown below

= Year 0 cash inflow × Present Factor of Year 0 + Year 1 cash inflow × Present Factor of Year 1 + Year 2 cash inflow × Present Factor of Year 2 + Year 2 cash inflow × Present Factor of Year 2 + Year 3 cash inflow × Present Factor of Year 3 + Year 4 cash inflow × Present Factor of Year 4 + Year 5 cash inflow × Present Factor of Year 5 + Year 6 cash inflow × Present Factor of Year 6 + Year 7 cash inflow × Present Factor of Year 7

= $3,600 × 1 + $3,600 × 0.8547 + $3,600 × 0.7305 + $3,600 × 0.6244 + $3,600 × 0.5377 + $3,600 × 0.4561 + $3,600 × 0.3898 + $3,600 × 0.3332

= $3,600 + $3,077 + $2,630 + $2,248 + $1,921 + $1,642 + $1,403 + $1,200

= $17,721

We take the first four digits of the discount factor.

3 0

3 years ago

Andy deposited $3,000 this morning into an account that pays 5 percent interest, compounded annually. Barb also deposited $3,000

iogann1982 [59]

Answer:

The correct answer is Barb will earn more interest the second year then Andy.

Explanation:

Bank interest is the money that is obtained or paid for the temporary transfer of capital. Its classification is by remunerative interest, or by default interest. And as for its operation, it is important to mention that the economic amount of interest, to be paid or collected, is given by market rules, since there is no legal limitation on them.

The interest rate will be conditioned by the market itself. For example, the interest we pay to our bank for any loan or credit operation is determined by the market interest rates taken as a reference, for example the Euribor and by the guarantees provided in our loan. A fully secured loan (mortgage for example) is much cheaper than another that has few guarantees.

3 0

3 years ago

Nancy's lease deed clearly states that she will have to pay $1,250 as rent per month and $2,000 as a one-time payment to secure

emmasim [6.3K]

Answer:

Security Deposit

Explanation:

Security deposit is the correct answer because this is the amount that has been considered by the owner when there is any damage occurs. This amount is paid initially which is more than the monthly payment and refundable when the agreement finishes. In the given question it can be clearly seen that the security money is more than monthly payment of $2000.

6 0

2 years ago