Answer:
67.44%
Explanation:
The computation of Annualized rate is shown below:-
Annualized rate = (Discount percentage ÷ 100 - Discount percentage) × 365 ÷ (credit period - discount period)
(3% ÷ (100% - 75) × (365 ÷ (75 - 10))
= (3% ÷ 25) × (365 ÷ (75 - 10))
= 12% × 5.62
= 67.44%
Therefore for computing the annualized rate we simply applied the above formula.
Asset transformation by financial intermediaries is the purchase of a primary asset or securities and their transformation into other assets in terms of risk and maturity.
A type of transformation where banks use deposits (mobilized funds) to generate income by pooling deposits to provide loans. More precisely, asset transformation is the process of converting bank liabilities (deposits) into bank assets (loans). Deposits are inherently subject to withdrawal by customers (depositors) at any time or as set out in the deposit contract/agreement. Loans are bank assets because they represent money that the bank lends and expects to receive back in the form of repayment of principal and interest. As such, banks perform asset transformation by providing long-term and short-term loans, with the interest differential being their transformation returns. Banks and other financial institutions usually perform asset transformation by offering their customers various financial products on both sides of the balance sheet, such as deposits, investment and loan products, etc.
Learn more about risk and maturity.
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Answer:
$14
Explanation:
Sam parks his car for 8 hours, the first two hours cost $5 and he would pay $0.75 for every half hour after the first two hours . That means he would pay $1.50 for every hour after the first two hours.
He spent 6 hours extra. The total amount that would be paid = $1.50 × 6 = $9
He would pay a total of $9 for the 6 hours extra he parked his car.
The cost of parking for the 8 hours is = $9 + $5 = $14
I hope my answer helps you
he exchange of money and the receipt of the item is mutual consideration for the transaction. In every single agreement, there must be consideration in order for the agreement to be legally binding; it is a critical part of contract formation. ... In other words, each person in a contract must promise to do something.
Answer:
Annual rate 0.017
Explanation:
Computation of the annual rate on the real bond.
Using this formula
Annual rate = Par Zero coupon inflation index/(1+r) ^Numbers of years =Inflation-indexed bond
Let plug in the formula
Annual rate=100 / (1 + r) ^10 = 84.49
Annual rate= (100 / 84.49)^1 /10 − 1
Annual rate=(1.18357)^0.1-1
Annual rate=1.016-1
Annual rate=0.017
Therefore the annual rate of return will be 0.017
