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
antoniya [11.8K]
4 years ago
11

You borrow $1,000 from the bank and agree to repay the loan over the next year in 12 equal monthly payments of $90. However, the

bank also charges you a loan initiation fee of $27, which is taken out of the initial proceeds of the loan. What is the effective annual interest rate on the loan, taking account of the impact of the initiation fee? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel.)
Business
1 answer:
Furkat [3]4 years ago
3 0

Answer:

The answer is 1,64%

Explanation:

Since the $27 dollars is taken out of the loan amount the net proceeds we are receiving are $973

We will use the $973 as our Present Value. (PV)

N = 12 which is the number of periods over which repayment takes place. In this case 12 months.

Payments are the monthly replayments of $90 which will be entered in as PMTS.

Thus the following will be entered onto a financial calculator;

N = 12 PMT = -90 PV = 973 FV = 0 COMP I =

Interest = 1,6427 %

rounded we now have an answer of 1,64% using a financial calculator to work out the interest charge

You might be interested in
Paul says to Miguel, "Did you get an interview with Bubbling Creek Realty? They haven't called me." Miguel does not want to tell
andrey2020 [161]

Answer:

changing the subject                                

Explanation:

In simple words, changing the subject refers to the method of privacy setting under which an individual  who does not want to take about a particular issue with the other tries to persuade the other by starting a new topic which might be more interesting.

That issue could be of more importance to the other individual or he or she might be an expert who will get the chance to show their knowledge. This technique is more effective withe hyper active people who talk a lot.

4 0
3 years ago
Read 2 more answers
Market researchers often report discretionary income. Discretionary income is your disposable income minus your fixed expenses.
SOVA2 [1]

The percentage of the disposable income that is discretionary is equal to 30.82% if the amount left after fixed expenses is $900.

As the amount left after payment of the fixed expenses is $900, this is said to be the discretionary income because discretionary income is equal to the disposable income minus fixed expenses.

Now we can calculate the percentage of disposable income that is discretionary as follows;

percentage of disposable income that is discretionary = (discretionary income ÷ disposable income) × 100

% discretionary income = (900 ÷ 2,920) × 100

% discretionary income = 90,000 ÷ 2,920

% discretionary income = 30.82%

Hence, 30.82% of the disposable income is calculated to be discretionary if the disposable income is $2,920 and the amount left after payment of fixed expenses is $900.

To learn more about discretionary income, click here:

brainly.com/question/15814704

#SPJ4

3 0
1 year ago
If the market interest rate drops to 5% on December 31, 2022, it will cost $458,290 to retire the bonds. Record the retirement o
dlinn [17]

To record the retirement of bonds we have to debit the bond payable account with $435,376, debit the interest account with $22,914, and credit the cash account with $458,290.

The retirement of the bond takes place when they are required to be redeemed before they mature. In other words, if the company wants to buy back its bonds before the period of the bond is over. Sometimes the company will also have to pay the interest amount that is due on the bond to the bond-holder.

The bondholders are creditors of the company. These are the people to have loaned money to the company and who the company has to pay back either at maturity or when the company wants. This should be specified to the bondholder before issuing him the bond. The transaction that will be written to record the transaction will be:

Bonds Payable a/c Dr. 435,376

Interest a/c              Dr.   22,914

To cash a/c                                         458,290.

(Being the bonds retired and interest amount paid)

Learn more about the retirement of bonds here:

brainly.com/question/13960495

#SPJ4

3 0
1 year ago
It’s important to realize that when it comes to distracted driving it is not about bad teens doing bad things, it’s about good t
ValentinkaMS [17]

Answer:

True

Explanation:

The above statement is true as the distracted driving is act of driving along with engaging into certain other activities which leads to the driver's lesser concentration and attention towards the the road and driving.

Since good teens are not supposed to make the poor choices while driving and engage into activities like using phone, texting or reading maps or messages etc.

3 0
3 years ago
Constructive conflict Multiple Choice encourages employees to re-examine their basic assumptions about a problem and its possibl
anyanavicka [17]

Answer:

encourages employees to re-examine their basic assumptions about a problem and its possible solutions.

Explanation:

Constructive conflict encourages employees to re-examine their basic assumptions about a problem and its possible solutions.

When employees working in an organization are engaged in a constructive conflict, they are able to draw from a variety of ideas, opinions and views of the other party and by extension moving the organization forward in its operations, goals, objectives and mission.

<em>Hence, a constructive conflict enhances the level of output or production in an organization rather than inhibitions of growth and development. </em>

7 0
3 years ago
Other questions:
  • All of the following are fees typically charged by credit card companies EXCEPT:
    5·2 answers
  • Lee Holmes deposited $15,000 in a new savings account at 9% interest compounded semiannually. At the beginning of year 4, Lee de
    9·2 answers
  • According to max weber, ideal bureaucracies are characterized by a chain of command in which authority flows from top to bottom.
    15·1 answer
  • 1. A = GDP deflator or the CPI for the United States
    9·1 answer
  • During the month of May, a company performed $2,400 of cash services and $3,300 of services on account. The journal entry at the
    6·1 answer
  • During its first year of operations, Mack's Plumbing Supply Co. had sales of $550,000, wrote off $8,800 of accounts as uncollect
    11·1 answer
  • Which resources can help you learn more about specific careers? Check all that apply. CareerOneStop a personal assessment a pers
    14·2 answers
  • What's the difference between everyday activities and projects
    7·1 answer
  • Select the correct answer from each drop-down menu. when the value of a country’s currency falls, the currency is , so one unit
    8·1 answer
  • In terms of memory, what is a chunk?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!