Available Options are:
a) growth
b) yield
c) tax consequences
d) liquidity
Answer:
Option D. Liquidity
Explanation:
The reason is that Leslie is worried about having back its money that will be invested in the time of need. So she sure that the amount will be required in the coming future and that she wants to earn a small profit for the time being. So the money worries are also referred to as liquidity concerns.
Solution :
a). The GDP of country A in 2010 is : 7253
GDP = consumption + investment + government purchase + net exports
= (1293+1717+301+704) + (310+374+611) + (1422+553) + (88-120)
= 7253
b). The consumption of the country A in 2010 is :
= $ 1293 + $ 1717 + $ 301
= $ 3311
c). The investment of country A is :
= $ 704 + $ 310 + $ 374 + $ 611
= $ 1999
d). The government purchases of the country A in the year 2010 is :
= $ 1422 + $ 553
= $ 1975
e). The export of the country A in year 2010 is $ 88.
f). The import of the country A in year 2010 is $ 120.
g). The net export of country A is given by :
Net export = export - import
= $88 - $ 120
= - $ 32
The total amount of money being transferred into and out of a business
Answer:
Ans. The effective annual interest rate charged on the loan is 12.99% effective annually. (Please see the attached excel spread sheet)
Explanation:
Hi, attached is the amortization table that I made for this case. Notice that there is a yellow and green cell, the yellow one is the result of using the "IRR" function of MS Excel which provides an effective monthly rate, since the payments are made every month, then we have to transform that monthly effective rate into an effective annual rate, this is the formula to use.
That is:
Which we round to 12.99% effective annually.
Finally, notice that I didnt use the payments to find the effective rate, I used the cash flow, that was because you didn´t receive all the 100K (the fee, remember?), you received $98,000.
Best of luck.