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ElenaW [278]
3 years ago
10

David needed money for some unexpected expenses, so he borrowed $3,695.17 from a friend and agreed to repay the loan in five equ

al installments of $950 at the end of each year. The agreement is offering an implied interest rate of .A) 14.85%
B) 9.57%

C) 11.00%

D) 12.98%
Business
2 answers:
Salsk061 [2.6K]3 years ago
5 0

Answer:

5.71% annually and 28.55% for the five years

Explanation:

The total repayment is 950*5 =4750

This shows the total interest as 4750-3695.17=1054.83

the implies 28.55 % of the principal amount

Nataly_w [17]3 years ago
3 0

Answer:

11% is the implied interest.

Explanation:

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kari74 [83]

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5 0
3 years ago
Caroline pays 15% taxes on dividends and capital gains and 35% taxes on ordinary income. Three years ago, she purchased 100 shar
Lilit [14]

Answer:

The answer is: B) $175

Explanation:

Caroline made an income of $500 from this transaction and it should be taxed at ordinary income rate (35%).

Caroline´s taxes = $500 x 35% = $175

In order for Caroline to be taxed at 15% (capital gains rate) she should have sold a capital asset that she had owned for more than one year, but in this case she didn´t sell any stock.

8 0
3 years ago
Women's Workout Warehouse gains a client who prepays $ 390 for a package of six physical training sessions. Women's Workout Ware
nataly862011 [7]

Answer:

$260

Explanation:

The computation is shown below:

There is $390  for a package of six physical training sessions

So for one package, it would be

= $390 ÷ 6

= $65

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= $65 × 4 training​ sessions

= $260

The service revenue is $260

And the unearned service revenue, it would be

= $390 - $260

= $130

4 0
4 years ago
If the marginal tax rate on income is 15 per cent up to $43,953
Ugo [173]

Answer:

srry

Explanation:

5 0
2 years ago
"A bond trader believes that he has too much inventory in 25-year ABC corporation bonds. The dealer would most likely:"
Setler [38]

Answer: b. hedge the bond positions

Explanation;

If the bond trader believes that he has too much inventory in 25-year ABC corporation bonds, it means he is worried that this holding can lead to potential loss.

The dealer would therefore like to act against this by hedging the bond positions which means to use derivative instruments such as interest rate swaps to ensure that the risk resulting from holding that many bonds is minimized.

6 0
3 years ago
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