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navik [9.2K]
3 years ago
5

Why is interest typically paid on a loan? A. to compensate the borrower for borrowing from a specific lender B. to ensure that p

eople do not borrow money without having a good reason C. to compensate the lender for the risk that the loan will not be repaid D. to compensate the lender for temporarily making do without the money that was lent
Business
1 answer:
Svet_ta [14]3 years ago
4 0

Answer:

The correct answer is option D.

Explanation:

An interest rate is an amount charged by a lender on the use of assets. It is expressed as a percentage of the principal. The interest rate is the return on lending for a lender and the cost of borrowing for the borrower.  

Interest is typically paid on a loan to compensate for the opportunity cost of lending money. A lender could invest the money instead of lending and get a higher return from it.  

To compensate for not using the money for an alternative purpose or for temporarily making do without the money that was lent, the borrower pays a certain percentage of principal to the lender.

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Identify the percent increase in total sales and the percent increase in sales of trench coats. Then find which percent of incre
geniusboy [140]

The percentage increase in the total sales for 2006 is 15% while the increase in sales of the trench coats is 23.3%; therefore the percentage increase in total sales of trench coats is 8.3% faster.

Computation:

1. The total amount of sales for 2006 and 2007:

\begin{aligned}\text{Sales of 2006}&=103+297+210+213+137\\&=960\end{aligned}

\begin{aligned}\text{Sales of 2007}&=127+223+210+285+259\\&=1104\end{aligned}

2. Now, the percentage increase will be determined for the total number of coats and trench coats:

For the total number of coats, the values used will be the total sales of 2006, and total sales of 2007.

\begin{aligned}\text{Percentage Increase}&=\dfrac{\text{Sales of 2007}-\text{Sales of 2006}}{\text{Sales of 2006}}\times100\\&=\dfrac{1104-960}{960}\times100\\&=15\%\end{aligned}

For the trench coats the values used will be the sale of trench coats in 2006 and 2007.

\begin{aligned}\text{Percentage Increase in Sale of Trench Coat}&=\dfrac{\text{Sales of 2007}-\text{Sales of 2006}}{\text{Sales of 2006}}\times100\\&=\dfrac{127-103}{103}\times100\\&=23.33\%\end{aligned}

3. Now, the  net percentage increase in sales due to the trench coats is computed as follows:

\begin{aligned}\text{Net Percentage Change}&=\text{\text{Percentage Increase in Trench Coat}-\text{Percentage Increase}}\\&=23.33\%-15\%\\&=8.3\%\end{aligned}

Therefore, the correct option is option B. Sales of trench coats increased 8. 3 percentage points faster than total coat sales.

To know more about percentages of increase in sales, refer to the link:

brainly.com/question/45525

4 0
2 years ago
Of these types of businesses, which one requires the most drive and motivation?
kondaur [170]
B, because it is a new business so it's going to have to work harder then any other business in order to gets it's name out there.
6 0
2 years ago
Define ethics, and describe the role that it plays in discretionary decision making. Give an example.
Lerok [7]

Explanation:

Ethics can be defined as the study of the behaviors that guide human behavior, that is, society is developed through a set of moral behaviors that define its values ​​and its conception of which human behaviors and attitudes are positive or negative. Ethics then emerges as the standardization of these behaviors and moral values, it is a code of conduct for positive actions by man in society in all areas of life.

In discretionary decisions, in which there is a possibility of interpretation by the legislators, ethics appears as a normative instrument for the conduct of decisions, being a guide for the legislator to decide for what will have greater ethical value and benefits for society.

6 0
3 years ago
A U.S.-based importer, Zarb Inc., makes a purchase of crystal glassware from a firm in Switzerland for 39,960 Swiss francs, or $
IRINA_888 [86]

Answer:

e. $638

Explanation:

payment to be made as per forward contract (IN $)

= 39960/ 1.682  

= $23757.43  

now the actual rate after 90 days is 1.638

payment at 1.638 rate = 39960/ 1.638

                                    = $24395.6  

loss by hedging = $24395.6 - $23757.43  

                           = $638.17

Therefore, The U.S. firm have saved or lost $638 in U.S. dollars by hedging its exchange rate exposure.

4 0
2 years ago
Malone Imports stock should return 12 percent in a boom, 10 percent in a normal economy, and 2 percent in a recession. The proba
Rufina [12.5K]

Answer:

6.11%

Explanation:

For computing the variance, first we have to determine the expected return which is shown below:

= (Expected return of the boom × weightage of boom) + (expected return of the normal economy × weightage of normal economy)  + (expected return of the recession × weightage of recession)

= (12% × 5%) + (10% × 85%)  + (2% × 10%)  

= 0.6% + 8.5% + 0.2%

= 9.30%

Now the variance would equal to the

= Weightage × (Return - Expected Return) ^2

For boom:

= 5% × (12% - 9.3%) ^2

= 0.3645

For normal economy:

= 85% × (10% - 9.3%) ^2

= 0.4165

For recession:

= 10% × (2% - 9.3%) ^2

= 5.329

So, the total variance would be

= 0.3645 + 0.4165 + 5.329

= 6.11%

4 0
2 years ago
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