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Tanya [424]
3 years ago
15

A local finance company quotes an interest rate of 17.1 percent on one-year loans. So, if you borrow $20,000, the interest for t

he year will be $3,420. Because you must repay a total of $23,420 in one year, the finance company requires you to pay $23,420/12, or $1,951.67, per month over the next 12 months. Is the interest rate on this loan 17.1 percent?
a. What rate would legally have to be quoted? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b. What is the effective annual rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Business
1 answer:
lions [1.4K]3 years ago
3 0

Answer:

If you pay $1,951.67 per month, then the interest rate on this loan is not 17.1%

a. The rate should be legally quoted 2.52% per month

b.  The effective annual rate is 30.2%

Explanation:

We can use excel to calculate for the actual rate charged on loan $20,000 with equal monthly installment of $1,951.67 by function rate = Rate(number of payments, amount paid monthly,loan value) = (12,-1951.67,20000,,,)

Please see excel attached for better understanding.

Download xlsx
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Gems Corp. is a leading jewelry brand that finds it hard to make as much profit as its competitors. In order to overcome this, t
Leni [432]

Answer: B - Internal Analysis

Explanation: Internal Analysis involves a company looking inwards to determine it's competencies, strength, weakness and advantages. Internal anaylsis usually incorporates a SWOT analysis.

A SWOT analysis is the analysis of the strength, weakness, opportunities and threats of the organisation.

An external analysis involves analysing the market place and economy to identify trends and put measures in place to take advantage of current trends to ensure profit maximization.

Competitior anaylsis involves analysising the competitions of an organisation to identify threats and opportunities so as to maximaise profit

Client advantage can arise from building a loyal customer base that always patronise the business or having a company been one of the few producers of a product.

In the case of Gems Corps, they looked inwards and made improvements to how the company is run.

Therefore,Gems Corps made use of Internal Analysis.

I hope my answer helps.

Goodluck

4 0
3 years ago
A marketing manager instructs his team to make 80 telephone calls to attempt to sell an insurance policy. The random variable in
Serggg [28]

Answer:

A) discrete random variable.

Explanation:

Discrete random variables can assume only a finite number of values, and their combined total probabilities must equal 1.

On the other hand, continuous random variables can take any value with an interval or collection of intervals, which means that the possible values are infinite.

A complex random variable is a combination of two real random variables that have rel and imaginary parts.

8 0
2 years ago
During September at Renfro Corporation, $65,000 of raw materials were requisitioned from the storeroom for use in production. Th
horrorfan [7]

Based on the amount of raw materials requisitioned, the journal entry to debit the Manufacturing Overhead would be $4,000.

<h3>What amount would be debited to manufacturing overhead?</h3>

The manufacturing overhead is for expenses that are not directly involved in the manufacturing process.

This is why it is the indirect material amount of $4,000 that will be debited to the manufacturing overhead account.

Find out more on manufacturing overheads at brainly.com/question/13312583.

#SPJ12

7 0
1 year ago
Account A pays simple interest.
maw [93]

Answer:

Explanation:

                          Interest Factors

<u>Periods          6%       7%          8%                  9%            10%             11 %</u>

1                 1.0600      1.0700     1.0800        1.0900     1.1000        1.1100

2                1.1236      1.1449         1.1664         1.1881      1.2100        1.2321

3                1.1910       1.2250      1.2597         1.2950     1.3310         1.3676

4                1.2625      1.3108     1.3605          1.4116       1.4641          1.5181

1)

Future value paying simple interest = Principal + [( principal * interest) * investment period]

Future value paying simple interest = $2,000 + [ ( $2,000 * 9%) * 3]

Future value paying simple interest = $2,000 + 540

Future value paying simple interest = $2,540

2)

Future value paying compound interest = Present value * ( 1 + interest)n

Future value paying compound interest = $2,000 * ( 1 + 0.09)3

Future value paying compound interest = $2,000 * 1.295029

Future value paying compound interest = $2,590.058

3)

Difference = $2,590.058 - 2,540

Difference = $50.058

3 0
2 years ago
ANSWER ASAP-- In one year, Corey earned $25,000 from his employer and a $300 capital gain from the sale of an investment. Corey
andrezito [222]

Answer:

Corey’s adjusted gross income is <u>$25,300</u>  and his total tax due will be <u>decreased</u> by the credit.

Explanation:

Add what Cory earned and his capital gain to make $25,300

Cory claimed the lifetime learning credit which decreases his total tax due

5 0
2 years ago
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