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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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Steeler Manufacturing uses an unrelated diversification strategy throughout its operations. For instance, Steeler has five core
galina1969 [7]

Answer:

highly-diversified

Explanation:

Based on the scenario being described within the question it can be said that Steeler Manufacturing would be considered a highly-diversified firm. This term refers to a business/organization that has a wide varied array of operations, all of which are completely unrelated to one another. Which is exactly what Steeler Manufacturing has with it's five subsidiaries. All of which are successful.

5 0
3 years ago
3. Columbia Corporation deposited $2,000 in an account that pays 12% interest annually. If the interest is compounded continuous
dangina [55]

Answer:

should be the letter B. $22,046

8 0
3 years ago
Are there any true communist economies today? Which economies call themselves communist, and what are they actually, if not comm
Stels [109]

Hey!! Glad I can help!!!

Answer:

Today, the existing communist states in the world are in China, Cuba, Laos and Vietnam. These communist states often do not claim to have achieved socialism or communism in their countries, but to be building and working toward the establishment of socialism in their countries.

If satisfied leave a review and feel free too give me brainiest :D

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3 years ago
A prepurchase inspection is different from a pre-sale inspection in there
Luba_88 [7]
These inspections are mostly connected to property purchase. The pre-sale inspection is conducted by investors and real estate agents who deal with the property. A pre-purchase inspection is conducted by the buyer who wants to purchase the property. Both are conducted as means of security.
8 0
3 years ago
Dollar Co. sold merchandise to Pound Co. on account, $25,500, terms 2/15, net 45. The Pound Co. paid the invoice within the disc
Scorpion4ik [409]

Answer:

c. $24,990

Explanation:

The Term 2/15 net 45 mean 2% cash discount is offered if the payment is made within 15 days otherwise the credit period is 45 days. There is no after 15 days of sale.

Amount of Sale = $25,500

Discount Rate = 2%

The Pound Co. paid the invoice within the discount period. They are eligible to receive the 2% discount on sale value.

Discount Amount = $25,500 x 2% = $510

Net Sales amount in this transaction = $25,500 - $510

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