Answer: Banks don't have any collateral for student loans
Explanation:
Students loans are the loans that are collected by the students so that they can be able to finance higher education. The loans can be gotten from private lenders such as bdnkd or by the government.
Student loans usually guaranteed by the government due to the fact that banks do not have any collateral for student loans but such students can be traced by the government in the case of default on the student's part.
Therefore, the correct option is D.
In order to properly tackle this problem, we must understand the relationship between the nominal annual rate and real (effective) annual rate.
To do this:
-First you take the nominal rate, divide by the number of times it's compounded (converted) per year.
-Then, add one to that number, and raise that number to the power of how many times you compound per year.
Here is the method in practice:
First 3 Years:
Nominal rate= 2% ÷ 12 times/yr = 0.001667
Effective rate = 1.001667 ^12 = 1.020184
Next 2 Years (Discounting)
3% ÷ 2/yr = .015
1.015 ^ 2 = 1.061364
Next 4 years (Interest)
.042 ÷ .5 (once every 2 years) = .084
1.084 ^ (1/2) = 1.041153
The last 3 years are already expressed as an effective rate, so we don't need to convert them. The annual rate is:
1.058
I kept the 1 in the numbers (1.058 instead of 5.8% for example) so that it's easier to find the final number
Take every relevant number and raise it to the power of the number of years it's compounded for. For discounting, raise it to a negative power.
First 3 years: 1.020184 ^ 3 = 1.061784
Next 2 years: 1.030225 ^ -2 = .942184
Next 4 years: 1.041163 ^ 4 = 1.175056
Last 3 years: 1.058 ^ -3 = .84439
Multiply these numbers (include all decimals when you do this calculation)
1.062 * .942 * 1.175 * .844 = .992598
This is our final multiplier to find the effect on our principal:
.992598 * 2,480 = 2461.64
Answer is 2461.64
It will go up because the milk is cheaper and they will buy what goes with it because they are complements ( milk and cereal ) this leads people to buy what goes with it so more cereal will be bought
Answer:
$97,000
Explanation:
Data provided in the question:
Receivable amount = 100,000 Canadian dollar
Premium per unit = $0.02
Exercise price of put option = $0.94
Spot rate at maturity = $0.99
Now,
Dollars received from selling Canadian dollars in the spot market
= Receivables amount × Spot rate
= $100,000 × $0.99
= $99,000
Premium paid for options = Receivable amount × Premium per unit
= $100,000 × $0.02
= $2000
Therefore,
The net amount received by the corporation if it acts rationally
= Dollars received from selling Canadian dollars - Premium paid
= $99,000 - $2000
= $97,000
Answer:
$562,500
Explanation:
Depletion expenses = Land expenses
Depletion expenses = [$2,300,000 - $50,000 / 4]
Depletion expenses = $2,250,000 / 4
Depletion expenses = $562500
So, the depletion expense recorded for 2018 is $562,500
