Answer:
option (b) 9.5%
Explanation:
Data provided in the question:
Loan Amount = $2,000,000
Annual interest rate = 9%
Required compensating balance = $100,000
Now,
Effective interest rate(EIR)
= (loan × Annual interest on loan) ÷ (Loan - Required compensating balance)
= ($2,000,000 × 9% ) ÷ ( $2,000,000 - $100,000 )
= ($2,000,000 × 0.09 ) ÷ ( $1,900,000 )
= 0.0947 ≈ 0.095
or
= 0.095 × 100%
= 9.5%
Hence,
the answer is option (b) 9.5%
D. Stick to established rules whenever possible; avoid negotiation.
This is the best choice because you are still being caring and kind; which a student needs, but you are also showing who's in charge. This will cause the students to have more respect for you.
Answer: $9,000
Explanation:
Speedy Runner will need to borrow the amount of cash disbursements that will exceed their cash receipts.
= Opening Cash + Cash Receipts - Cash Disbursements
= Opening Cash + Expected Cash Collections - Direct Labor Cash - Direct Materials Cash Disbursements - Operating Expenses Cash Disbursements - MOH Cash Disbursements - Capital Expenditures Cash Disbursements - Ending cash balance requirement
= 15,300 + 435,000 - 32,000 - 80,000 - 110,000 - 25,000 - 200,000 - 12,000
= $8,700
<em>They can borrow in incremental terms of $1,000 so to cover the cash requirements they should borrow </em><em>$9,000. </em>
A country's economy will go on a decline if there is a hyperinflation in the petrol prices.
<h3>What is hyperinflation?</h3>
Extreme increase in prices in a very short span of time is regarded as the condition of hyperinflation. If there is hyperinflation in the petrol prices, its demand will be lowered and people will look for substitutes.
Thus, increase or hyperinflation in the petrol prices will lead to declining of a country's economy and will not serve as a wise decision.
Learn more about hyperinflation here:
brainly.com/question/22313119
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