1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
katen-ka-za [31]
3 years ago
8

Payments on an installment note include the accrued interest expense plus a portion of the amount borrowed. Question 5 options:

True False
Business
1 answer:
Vitek1552 [10]3 years ago
5 0

Answer:

The statement is: True.

Explanation:

Installment payments are those paid on a regular basis as part of the terms of a loan. A debtor requires a loan to the creditor who after an evaluation determines if the debtor is approved or not. If approved, the debtor commits to make regular installments that partly cover the principal of the loan and the interest rate inherent of the amount borrowed.

You might be interested in
How did capitalism fuel industrialization?
Katena32 [7]
<u><em>Capitalists want to make money . . . the best way to do that is to make businesses/production more profitable by increasing production to a large scale (i.e. industrialization)</em></u>
4 0
3 years ago
During the annual planning meeting, Anastasia, president of a Fortune 500 company, discussed with the upper management the strat
zimovet [89]

Answer:

The correct answer is: B. False.

Explanation:

Electronic commerce or E-commerce, consists of the purchase, sale, distribution, marketing and supply of information on products or services through the Internet. What is achieved with this network is that any potential customer can access products or services from anywhere, at any time. For this reason, it is argued that implementing an electronic commerce system will be reflected in an increase in sales and income.

5 0
3 years ago
An investor borrows an amount at an annual effective interest rate of 5% and will repay all interest and principal in a lump sum
Ghella [55]

Answer:

d. 101

Explanation:

first we must determine the amount of the loan:

PV of face value = $1,000 / (1 + 3%)²⁰ = $553.68

PV of coupon payments = $40 x 14.877 (PV annuity factor, 3%, 20 periods) = $595.08

Loan amount = $1,148.76

Future value of the loan = $1,148.76 x (1 + 5%)¹⁰ = $1,871.21

You will receive 20 coupon payments of $40 each, which will be reinvested at 2% semiannual rate. You will also receive $1,000 corresponding to the face value of the bond.

Future value of the coupon payments = $40 x 24.297 (FV annuity factor, 2%, 20 periods)] = $971.88

Total money received at the end of the 10 year period = $971.88 + $1,000 = $1,971.88

Gain = $1,971.88 - $1,871.21 = $100.67 ≈ $101

7 0
2 years ago
Suppose you are trying to understand the effect that an increase in the price of grapes will have on the market for wine.
NemiM [27]

Answer:

The correct answer is option d.

Explanation:

The most effective model to understand the effect of change of a variable on other variable is by assuming other factors to be constant. This simplifies the model and helps in easily understanding the relationship between the two variables.  

Though the assumption of other things being constant does not apply in the real world, it is still used as otherwise change in other factors would complicate the model. If several factors change it would be difficult to understand the relationship between variables.  

Here, to study the effect of change in the price of grapes on the market for wine, it is necessary to assume other factors such as income, consumer preferences, etc to be constant.

4 0
3 years ago
What is the effective rate of a $25,000 interest-bearing simple discount 10%, 90-day note?
salantis [7]
The effective interest rate on a discounted note is
.. 1/(1-r) = 1/0.9 ≈ 11.11%

_____
The amount and time have nothing to do with it for simple interest.
5 0
3 years ago
Other questions:
  • In three or four sentences, describe why the vice president in a company makes a very high salary while a person who works in hu
    11·1 answer
  • There may be more than one critical path in a project network.
    5·1 answer
  • Public companies under the jurisdiction of the Securities and Exchange Commission are required by law to hire a certified public
    14·1 answer
  • A change from an inefficient mix to an efficient mix of output would best be represented with a production possibilities frontie
    15·1 answer
  • Washington Inc. issued $846,000 of 6%, 20-year bonds at 98 on January 1, 2009. Through January 1, 2017, Washington amortized $9,
    13·1 answer
  • A married customer who has an individual account dies. The broker who handles the account learns that one of the major holdings
    15·1 answer
  • Assume that MargaretMargaret purchases a 1313​% partnership interest from DaronDaron on June 30 so that MargaretMargaret and Dar
    13·1 answer
  • Customers who face the same general needs of the marketplace but are likely to experience them months or years earlier than the
    15·1 answer
  • Company X has 100 shares outstanding. It earns $1,000 per year and expects to pay all of it as dividends. If the firm expects to
    11·1 answer
  • Which of the following is NOT considered a convertible instrument and is indicative of a complex capital structure? a. convertib
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!