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3 years ago

12

Suppose People's bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $

250.00 at the end of each quarter and then pay off the principal amount at the end of the year. What is the effective annual rate on the loan

1 answer:

I am Lyosha [343]3 years ago

4 0

The correct answer is 10.38%

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Phil enters into a contract with Quality Resorts, Inc., to work as a chef. Under the plain meaning rule, the meaning of this con

icang [17]

Answer:

"The face of the instrument"

Explanation:

This is a legal phrase which means the contract (aka the "instrument") must be read "on its face." Basically, you should put everything you want the contract to say in plain language and the parties are only held to the plain, common understanding of exactly what is written down.

The idea is that no party can go back and say that something else is expected or implied from the contract unless it is actually written down.

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3 years ago

"The S&H Construction Company expects to have total sales next year totaling $ 14 comma 700 comma 000. In addition, the fi

Novay_Z [31]

Answer: $480,350

Explanation:

Income is calculated by deducting expenses from the sales which includes the Cost of Goods sold.

The Cost of Goods sold is given to be 63% of the Sales Next year and the Operating Expenses are given to be 30% of the sales.

That means a total of,

= 63 + 30

= 93%

93% of the sales will be deducted from the sales as expenses.

$290,000 will also be owed as interest so needs to be removed from the sales as well.

Calculating that will give,

= 14,700,000 - 14,700,000(0.93) - 290,000

= 14,700,000 - 13,671,000 - 290,000

= $739,000

This is the income after interest and expenses.

Now the tax has to be accounted for.

With a tax rate of 35%, the income minus tax will be,

= 739,000 ( 1 - 0.35)

= 739,000 * 0.65

= $480,350

$480,350 is the after-tax estimate if income for the following year.

8 0

3 years ago

Which one of the following is not an assumption of the EOQ model? Decisions for one item can be made independently of decisions

irga5000 [103]

Answer:

Quantity discounts can be taken advantage of for large lot sizes.

Explanation:

The EOQ model assumptions:

the order of one item does not intervene with the other.

The order will arrive without delay and with a specific amount of goods.

no losses or damage in transit

The EOQ does not consider the discount for large lot size, their formula does not consider the value of the goods:

$Q_{opt} = \sqrt{\frac{2DS}{H}}$

Its use: Demand of the good

cost of Setup, or ordering cost.

and Holding cost, the cost of keeping the inventory

There is no variable to account for discounts for order size in this method

7 0

3 years ago

Several years ago, The Wall Street Journal reported that the winner of the Massachusetts State Lottery prize had the misfortune

Contact [7]

Answer:

a. If the interest rate was 8%, how much would you have been prepared to bid for the prize?

this is an ordinary annuity:

annual payment = $9,420,713 / 20 = $471,035.65

number of periods = 19 periods

interest rate = 8%

therefore, the present value annuity factor = 9.6036

the present value of the annuity = $471,035.65 x 9.6036 = $4,523,637.97 ≈ $4,523,638

b. Enhance Reinsurance Company was reported to have offered S4.2 million. Use Excel to find the return that the company was looking for.

using the IRR function in Excel, the return that Enhance was looking for was 9.05%

3 0

3 years ago

You want the salespeople on your staff to perform at their best, thus you want to make sure they are properly supervised. In det

lbvjy [14]

Answer:

Factors to consider:

1. Specialisation role

2. Complexity of sales process

3.Tenure

4.Geographical coverage

5. Sales Representative leadership

6. Support network

7. Internal Bureaucracy

8. Value add of managers

Factors not to consider;

1. Market share

2. Production process

3. Distribution process

4. Personal affiliation, race or religion

Explanation:

When considering a company's span of control, which simply means the number of junior staff a manager should manage, it is important to note factors relating to geographical coverage, a wide coverage can create difficulties in supervision to a manager. Consequently reducing the span of control.

Specialisation also help in ensuring the manager is an expert in the area he or she supervise. Experienced manager with good understanding of the tasks, good knowledge of the workers and good relationships with the workers, will be able to supervise more workers

The complexity of a sale process can affect a manager's supervision performance. if the sale process for example require an online payment to a final user who may not be physically available. Supervising such sales requires adequate training.

Other factors like; Tenure, Sales Representative leadership, Support network, Internal Bureaucracy, Value add of managers are paramount in determining span of control. However, market share, production process, distribution process and personal affiliation, race and religion should not affect the span of control.

3 0

3 years ago

Read 2 more answers