Circular flow is a model of economy in which major exchanges are showed as flow of money, food, goods, services and etc between economic agents. In circular flow, the flows of money and goods exchanges in a closed circuit but runs oppositely. Circular flow analysis is the basis of national accounts.
Answer: a. $53500
b. A. The loan officer should offer the company an add-on interest loan because there is a high risk that the company will not be able to repay the principal on the loan at the end of the project's life.
Explanation:
a. Based on a 360-day year, the monthly payment for each loan for November will be:
Principal = $600,000
Interest rate = 10%
Simple interest = (P×R×T)/100
= (600000 × 10× 1) /100
= $60000
The simple interest per month which will also be thesame for Novemeber will be:
= 60000/12
= $5000
Since add on interest is 7%, then the interest will be:
= 7% × $600,000
= 0.07 × $600,000
= $42000
Therefore, the interest for month of November will be:
=(600000 +42000)/12
= $642000 / 12
= $53500
b. The answer that best evaluates the statement given is option B. It should be noted that since it's a startup company, there may be challenges in repaying the loan. Therefore, the best scenario will be that the loan should be given on add on interest basis.
One of the 6 steps in marketing research I would say is demographics ie what is the demographic of the target population one is gearing one's enterprise or product to? In other words, is it mostly seniors, or mostly youth, and is it working class or upper class, for examples.
Essence between two parties
Answer:
$612
Explanation:
To compute the depreciation, first we have to compute the depreciation per hour which is given below:
= (Cost of diesel-powered tractor - estimated residual value) ÷ (useful operating life)
= ($186,240 - $5,700) ÷ (59,000 hours)
= ($180,540) ÷ (59,000 hours)
= $3.06 per hour
Now the depreciation would be
= Operated hours × depreciation per hour
= 200 units × $3.06
= $612
