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Brut [27]
3 years ago
6

You are in desperate need for cash to pay your water bill so you head to the check-cashing store down the street. They offer to

lend you $200 now but you must leave a postdated check of $212 to be cashed in 7 days. What is the effective annual rate of this short-term loan?
Business
1 answer:
rodikova [14]3 years ago
6 0

Answer:

1969.6%

Explanation:

The computation of the effective annual rate is given below;

Given that

It is been charged $12 for $200 loan for 7 days

So for 7 days,

the nominal interest rate is is

= 12 ÷ 200 × 100

= 6%

Now

(1+r) = (1+0.06)^{52}

(1+r) = 20.696

r = 19.696

= 1969.6%

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Warr Company is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's pr
BartSMP [9]

Answer:

Option B, IRR is 14.42%

Explanation:

The IRR is the rate of return that equates the cost of the project to the present value of cash flows receivable from the project in future.

Using an excel approach, the formula formula IRR is given as:

=irr(values)

The values in this case are

-$1300 in  year 0

$450 in year 1

$450 in year two

$450 in year 3

$450 in year 4

The irr gives 14.42% as shown in the spreadsheet attached

The cost of the investment of the investment project of $1300 equals the present values of its cash flows at 14.42% rate of return

Download xlsx
4 0
3 years ago
Presented below is information related to Windsor Company.
zysi [14]

Answer:

Date    Account Titles            Debit         Credit

Oct 1    Cash                          $16,800

                 Common Stock                      $16,800

Oct 2    No journal entry             -                  -

Oct 3    Office Furniture         $2,500

                  Accounts Payable                  $2,500

Oct 6.   Accounts Receivable  $3, 400

                   Service Revenue                   $3,400

Oct 27   Accounts Payable       $1,100

                    Cash                                      $1,100

Oct 30   Salaries Expense       $2,650

                    Cash                                      $2,650

7 0
3 years ago
Do average citizens benefit from the activities of the sba, or is the sba just another way to spend our tax money?
marishachu [46]
Average citizens do profit by the exercises of the SBA since it gives benefits best to them and offers openings for work. It can likewise help their group fiscally. Some ways that the SBA can give help to a proprietor of a private company are web based preparing and monetary help.
4 0
2 years ago
About how many containers will be recycled if 125 people attend a concert?<br><br>it math
Natalija [7]
Over 300 since a lot of people tend to use more than one
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8 0
3 years ago
Suppose the current price of a good is $55. At this price, the quantity supplied is 165 units, and the quantity demanded is 240
inysia [295]

Answer:

190

$60

Explanation:

Equilibrium price is the price at which quantity demanded equals quantity supplied

Equilibrium quantity is the quantity at which quantity demanded equals quantity supplied

Let x = change in quantity supplied

the following equations can be derived from the question

165 + 5x = total change in quantity supplied

240 - 10x = total change in quantity demanded

At equilibrium, quantity demanded equals quantity supplied. So,

165 + 5x = 240 - 10x

collect like terms and solve for x

15x = 75

x = 5

this means that quantity supplied would have to increase 5 times : 165 + 5(5) = 190

and quantity demanded would have to decrease 5 times : 240 + 10(5) = 190

equilibrium quantity is 190

equilibrium price = $55 + 1(5) = $60

3 0
2 years ago
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