7%.
One-year interest rate (R) = [C + (F - P) / N] / [(F + P) / 2], where
C: Annual coupon = $1,000 x 5% = $50,
F: Face value = $1,000,
P: Market price = $981,
N: Years left to maturity = 1
So,
R = [50 + (1,000 - 981) / 1] / [(1,000 + 981) / 2]
= [50 + 19] / (1,981 / 2)
= 69 / 990.5
= 0.07
= 7%.
The principal is the money that you originally agreed to pay back. Interest is the cost of borrowing the principal. Generally, any payment made on an auto loan will be applied first to any fees that are due (for example, late fees).
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Answer:
True
Explanation:
Without the marketing department the business is demolished
Answer:
The correct answer is:
The contribution margin in dollars for a single product. (D.)
Explanation:
The unit contribution margin is the amount in dollars by which the price of selling a product exceeds the total variable cost incurred in the manufacture of that product. Mathematically it is the selling price of a product minus the total variable cost incurred on the single product. It is the proportion of sales revenue that is not consumed by variable costs, hence is used for the coverage of fixed costs.
The importance of unit contribution margin is that it is used to calculate the break-even price of the product, when fixed costs are made up for. It measures how growth in sales translates to growth in profits.