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Maurinko [17]
3 years ago
8

A student bought a $75 used guitar and agreed to pay for it with a single $80 payment at the end of 3 months. What is the nomina

l annual interest rate? What is the effective interest rate?
Business
1 answer:
Wewaii [24]3 years ago
8 0

Answer:

29.5%

Explanation:

Effective interest rate is the actual interest rate that a investor receives on invesment or a borrower pays on loan including the compounding effect.

APR = (80 - 75) / 75 = 0.067 = 6.67%

Effective interest rate = ( 1 + APR )^n - 1

Effective interest rate = ( 1 + 6.67% )^4 - 1

Effective interest rate = ( 1.0667 )^4 - 1

Effective interest rate = 1.2947 - 1

Effective interest rate = 0.2947

Effective interest rate = 29.5%

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Stock A has an expected return of 15 percent and the standard deviation of its returns is 20 percent. Stock B has an expected re
kiruha [24]

Answer:

Stock A will be preferable for the risk averse Investors.

Explanation:

The reason is that risk is the measure of the vulnerability of the returns on the investment made which means if the return on the investment has greater vulnerability of returns then it is highly risky. So the risk averse investor would prefer stock A with lower risk.

(Special comments:

It must be noted that the higher return shows that the investment is also highly risky because nobody is going to give you more with low risk associated investments. This means lower return on Stock B is also preferable here for the risk averse investor because it carries lower risks.)

4 0
3 years ago
While showing a property to an unrepresented buyer, you owe the customer the duties of dealing honestly and fairly, accounting f
adelina 88 [10]

This is also known as the three duties towards the customer DAD Dealing with Honesty. Accounting for all funds and Disclosing the material facts to the buyer.

<h3>Who is a buyer?</h3>

A buyer is a customer who purchases the goods and or services of a company through which the company generates the revenue and earn profits. The buyer plays a key role in the development and running of a company.

The buyer should be allowed to have all the information about the product or service it is going to purchase, the buyer should be informed about the market rates and the demand of the goods as this is a material fact about the product.

Therefore it is a duty that a seller owes to the buyer to deal with honesty that is not charging high price if they are unaware of the price of the product.

Learn more about Buyer at brainly.com/question/27282505

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7 0
2 years ago
Both Phoebe and Connor are trying to maximize their lifetime income. Each has a different plan on how to do it best. Phoebe clai
andrew11 [14]
The correct answer is C. By attending college, Connor actually stands better prospects to earn a significant salary throughout his lifetime. Employees having gone through post-secondary education generally earn more income than those who have not studied till college. The simple reason is, by attending college, you acquire sharper knowledge and insights of disciplines you wouldn't otherwise have access to. You get skills that are in line with a demanding and fast-paced environment. People often regret not attending college because they could have grabbed a certificate that could have been a stepping stone for professional opportunities and higher incomes.
7 0
2 years ago
Read 2 more answers
Marc is 32 and married to Estella, who is 30. Estella is a stay-at-home mom to their two children, ages 1 and 4. They currently
astraxan [27]

Answer:

B. $1,015,500 on Marc ; $756,500 for Estella

Explanation:

Marc has current salary of $110,000 with which he runs the household expenses. If Marc dies then there should be more insurance coverage because he is the only person who earns in the house. Estella is a house wife and insurance coverage for her is lower than Marc because he will still be able to continue his earning.

6 0
2 years ago
The Value of a Bond is tied to the Dividend rate.<br><br> True or false
PilotLPTM [1.2K]

<u>Answer:</u> False. The Value of a Bond is not related to the Dividend rate.

<u>Explanation:</u>

Bond rates are inversely related with the interest rates in the market and not dividend rates. Bonds yield interest for the investment and not dividends. Dividends are paid for shares. Dividend rates affects the share price and not Bond value in the market.

The interest rates of the Bonds can be fixed rates or fluctuating rates. It depends on the type of the security issued. As the interest rates are fluctuating then the risk for the investors increase.

7 0
3 years ago
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