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
s344n2d4d5 [400]
2 years ago
6

Martin is offered an investment where for $6000 today, he will receive $6180 in one year. He decides to borrow $6000 from the ba

nk to make this investment. What is the maximum interest rate the bank needs to offer on the loan if Martin is at least to break even on this investment?A) 3%B) 4%C) 2%D) 1%
Business
1 answer:
Effectus [21]2 years ago
3 0

Answer:

maximum interest rate = 3%

so correct option is A) 3%

Explanation:

given data

investment = $6000

receive = $6180

borrow = $6000

to find out

maximum interest rate bank needs to offer on the loan

solution

we consider here maximum interest rate bank needs to offer is = r

so value of investment will be express here as

value of investment = amount to be borrowed × ( 1 + r )    ................1

put here value we get rate r

6180 = 6000 × ( 1 + r )

solve it we get

rate = 0.03

maximum interest rate = 3%

so correct option is A) 3%

You might be interested in
What is the historical origin of carrot cake​
PtichkaEL [24]

Answer:

carrot cake originated from such carrot puddings eaten by Europeans in the Middle Ages, when sugar and sweeteners were expensive and many people used carrots as a substitute for sugar.

7 0
2 years ago
Read 2 more answers
Amanda is trying to decide whether to get a job after graduation or to spend another year in school to get her master's degree.
Alenkinab [10]

Answer:

36,000

Explanation:

5 0
3 years ago
Four basic steps are used in an abc system. list the proper order of these​ steps, which are currently scrambled​ below:
alukav5142 [94]
First Identity the primary activities
Then goes select an allocation
Followed by calculating an activity
And finally allocate the costs

Hope this helps
7 0
3 years ago
How do marginal costs<br> and benefits relate to trade-offs?
Lisa [10]

Answer:

A trade-off is the actual alternative option that is given up, while the value of this alternative option is the opportunity cost. ... Marginal cost is the cost of using one more unit of a good or service, and marginal benefit is the benefit or satisfaction received from using one more unit of a good or service.

Explanation:

6 0
3 years ago
9.
svp [43]
A. By eliminating the effects of price increases on GDP growth. Nominal GDP is calculated using the current prices while Real GDP is adjusted for inflation.
4 0
3 years ago
Read 2 more answers
Other questions:
  • Belle Co. has beginning inventory of 12 sets of paints at a cost of $1.50 each. During the year, the store purchased 7 at $3.00,
    6·2 answers
  • What would it signify if the population of a country remained the same while the real GDP increased? A) the economy is in declin
    5·2 answers
  • The ideal, initial step leading to implementation of an effective employee communications program should begin with
    7·1 answer
  • Which of the following is not a major determinant of the price elasticity of demand? A. availability of close substitutes B. pro
    11·1 answer
  • A monopoly finds that, at its present level of output and sales, marginal revenue equals $5 and marginal cost is $4.10 which of
    10·1 answer
  • Regal Clothing is a manufacturer of designer suits. For June 2017​, each suit is budgeted to take 3 ​labor-hours. The budgeted n
    11·1 answer
  • Which of the following statements is likely to be made by an economist who believes in activist monetary policy? (1) The more cl
    7·1 answer
  • A firm had after-tax income last year of $3.0 million. Its depreciation expenses were $0.6 million, and its total cash flow was
    14·1 answer
  • I need q 4 and 5 please:)
    9·1 answer
  • The monopolist's level of output is not at the minimum point of ______, meaning it will not be productively efficient.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!