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inysia [295]
3 years ago
6

Compare investment alternatives You have two investment opportunities. One will have an 8% rate of return on an investment of $1

0,000; the other will have a 10% rate of return on principal of $14,000. You would like to take advantage of the higher-yielding investment but have only $10,000 available.
Required:
What is the maximum rate of interest that you would pay to borrow the $4,000 needed to take advantage of the higher yield?
Business
1 answer:
nasty-shy [4]3 years ago
3 0

Answer:

15%

Explanation:

The maximum rate of return that would be paid to borrow an additional $4,000 needed can be calculated as

Rate of return =\frac{Amount of interest}{Amount borrowed}

Rate of return = $600/$4000

Rate of return = 0.15 or 15%

NOTE: The amount of interest is the difference of interest earned at higher yield and interest earned at a lower yield.

Interest earned (higher yield) = $10,000 x 8%

Interest earned (higher yield) = $800

Interest earned (lower yield) = $14,000 x 10%

Interest earned (lower yield) = $1,400

Difference = $1,400-$800

Difference = $600

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Leisure Heating & Cooling installs and services commercial heating and cooling systems. Leisure uses job costing to calculat
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Answer:

Instructions are listed below

Explanation:

Giving the following information:

Overhead is allocated to each job based on the number of direct labor hours spent on that job.

At the beginning of the current year:

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Job 102:

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C) Job 101:

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Job 102:

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4 0
3 years ago
Purchase task, social surroundings, physical surroundings, temporal effects, and antecedent states can have an impact on a consu
quester [9]

Answer:

<u>Situational Influences </u>

Explanation:

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eduard
Since no choices are presented, I'll just list down the parts of a cover letter.

A cover letter is a one page document that is attached to a resume. It has 5 parts.

1) The Salutation : Dear Hiring Manager,
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3 0
3 years ago
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Answer:

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capital

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entrepreneur

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labour

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