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
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
You might be interested in
If you were running a company, describe at least two things you would do to improve its productivity
ddd [48]
If I was running a company, I would spend more time to work on training because the more your trained, the more you can make (Quality is also better if more trained). I would give days off because my workers won’t make as much if they are tired.
8 0
3 years ago
Read 2 more answers
Willow Trees Inc. makes seven different products, four of which are within their first year of existence. The demands for all pr
Papessa [141]

Answer:

Willow Trees Inc. should use bottom-up planning

Explanation:

Bottom-Up Planning is an effective method to increase productivity and efficiency of the production process. It includes planning, and defining the objectives that company needs to achieve through bottoms first.

Firstly, targets that will help achieve lower level hierarchy are set into place. From there they are slowly incorporated in higher level goals that will eventually reach the global goals of the company.

7 0
3 years ago
What is capital market?
goblinko [34]
It's a financial market where people can buy or sell long-term debt or equity-backed securities

The example of capital markets are : New York stock Exchange, American stock exchange, London stock exchange, NASDAQ, Etc

5 0
3 years ago
Pilar uses a unique product number for each product in her inventory. she makes the product number ____.
8090 [49]
Based on the question, Pilar was creating a database for her business.
The choices are: a. a table b. the primary key c. a database d. a record

I believe the answer is b. the primary key. 

<span>A primary key is a known as a unique record used in creating a license number or a telephone number. This is used in a relational database where there is only one primary key used as </span>
5 0
3 years ago
Collaborative and co-operative approach among all the stake holders is important. This is a feature of the _______________ agile
andrezito [222]

Collaborative and co-operative approach among all the stake holders is important. This is a feature of the Dynamic system development method of  agile methodology.

<h3>What is collaborative approach?</h3>

A collaborative  learning approach  can be described as one which involves the operation of the activities or  tasks together within a  group or organization so as to make sure  that everyone participates.

It should be noted that Collaborative and co-operative approach among all the stake holders is important because it help them to work , hand in hand for the progress of the organization.

Find out more on the Dynamic system at brainly.com/question/16797306

#SPJ1

5 0
2 years ago
Other questions:
  • The board of directors of Capstone Inc. declared a $0.90 per share cash dividend on its $2 par common stock. On the date of decl
    15·1 answer
  • Marci spends 8 hours researching and writing a 26​-page report for her philosophy class. Jack brags that he has a​ "streamlined
    8·1 answer
  • Whats better, be an hour early to work, or 15 minutes late?
    5·1 answer
  • Howard Cho has been hired by Greenwood Enterprises to work on an assembly line in its small engine division. He understands that
    8·1 answer
  • You created a financial model for a pitchbook being presented tomorrow to a potential new client. While reviewing the final vers
    10·1 answer
  • The Grondas, who owned a party store along with land, fixtures, equipment, and a liquor license, entered into a contract to sell
    5·1 answer
  • 30 points please help!
    11·1 answer
  • Seidman Company manufactures and sells 20,000 units of product X per month. Each unit of product X sells for $17 and has a contr
    8·1 answer
  • Happy halloween everyone
    14·2 answers
  • On January 1, the Matthews Band pays $69,000 for sound equipment. The band estimates it will use this equipment for five years a
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!