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
aleksandrvk [35]
3 years ago
7

Elliott Credit Corp. wants to earn an effective annual return on its consumer loans of 11 percent per year. The bank uses daily

compounding on its loans. What interest rate is the bank required by law to report to potential borrowers?
Business
1 answer:
LenaWriter [7]3 years ago
6 0

Answer:

10.29 %

Explanation:

The interest rate that is required by the bank by the law to report to potential borrowers can be calculated by the following expression.

Interest rate to be reported = [(1+EAR)^{1/n}-1]*n

where

EAR = effective annual return rate = 11% = 0.11

n = number of days in a year = 365 days

replacing our values into the above equation; we have:

⇒ [(1+0.11)^{1/365}-1]*365

= [1.11^{(0.0027)}-1]*365

= [1.00028182-1]*365

= 2.81811743*10^{-4}

= 0.1029

= 10.29 %

Thus, the interest rate  the bank is required by law to report to potential borrowers = 10.29%

You might be interested in
HELP ASAP!! What process includes sending rough drafts to the client for approval?
cricket20 [7]
I want to say that the answer is <span>copy development</span>
4 0
3 years ago
Where in an e-mail would you find information about the action required?
Masteriza [31]

Answer:

The message

Explanation:

7 0
2 years ago
Read 2 more answers
Christina buys groceries every month from Target and rarely does much research on the products she buys. What is the marketing t
Neporo4naja [7]

People do have preference. Routine response behavior is the marketing term for this type of consumer behavior.

<h3>What is consumer behavior?</h3>

Consumer behavior is known to be the study of how people, customers, groups, etc., often select, buy, or use goods, and services to answer to their needs and wants.

Routine Response is also known as Programmed Behavior. Here one is buying low cost items and as such one do not need much search and decision effort.

Learn more about  consumer behavior from

brainly.com/question/1364759

5 0
2 years ago
Companies in the same industry often select very different distribution networks, because the choice of the distribution network
Helen [10]

Answer:

T

Explanation:

6 0
2 years ago
Suppose you face a choice between a certain income of $2,000, or a 50-50 chance of income of $1,000 or $3,000. Suppose you prefe
Aleonysh [2.5K]

Solution :

The risk averse is the person who wishes to reduce the uncertainty attached to the money.

Certain income = $2000.

50-50 chance of 1000 and 3000 would income expected income of

(0.5 x 1000) +(0.5 x 3000) = 2000

Both of them gives an equal amount of income while there is uncertainty attached with the second case which makes the risk averse person disincline to follow.

Hence the statement is FALSE.

Assume that the population level in a country is X. 5 percent of the population are likely to get affected by the disease due to which it makes a population of 0.05 X population to be effected by the disease. The population level will cost  $38,000, hence making the total healthcare cost to be 1900 X.

8 0
3 years ago
Other questions:
  • All of the following are economic indicators EXCEPT
    15·2 answers
  • A manager wants to motivate the maintenance staff to be more productive. She starts by providing training and assures employees
    6·1 answer
  • How can technology interfere with good study habits? Students can use technology to search for answers to challenging questions.
    14·1 answer
  • What type of insurance protects a business against injuries on the premises? Question 3 options: A) Workers' compensation B)Comp
    12·2 answers
  • Ronnie operates a lawn care service. on each day, the cost ofmowing the first lawn is $10: the cost of mowing the second lawn is
    8·1 answer
  • Teachers at the kindergarten through high school level may deduct up to $225 of education supplies and materials cost each year
    6·1 answer
  • What is dimensional equation​
    15·1 answer
  • In the short run, average total costs and average variable costs converge as output increases because:________
    6·1 answer
  • The single global rating approach to measuring job satisfaction is more sophisticated than the summation of job facets approach.
    6·1 answer
  • Business processes supported by enterprise systems related to travel expense reporting are associated with​ ________ processes.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!