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nikdorinn [45]
3 years ago
6

Nor Corporation borrowed money using a discounted note at 94 with a stated 6% interest rate and a face amount of $400,000. What

is the effective rate of interest on the debt
Business
1 answer:
kolezko [41]3 years ago
8 0

Answer:

the effective rate of interest on the debt is 6.38%

Explanation:

The computation of the effective rate of interest on the debt is shown below:

Effective rate of interest is

= ($400,000 × 6%) ÷ ($400,000 × 0.94)

= $24,000 ÷ $37,600

= 6.38%

Hence, the effective rate of interest on the debt is 6.38%

It could be determined by applying the above formula so that the correct rate could come

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Suppose you are a senator writing a bill to index Social Security and federal pensions. That is, your bill will adjust these ben
jolli1 [7]

Answer: The answer is consumer price index (CPI)

Explanation:

The consumer price index is the most popularly used price index to measure the level of inflation in the country.it is a measure of welfare which shows the amount of money needed by the people to provide for themselves a good standard of living. The consumer price index is based on the quantity of goods consumers are buying in the market, because it measures the level of changes in the consumer goods in the economy at a given period of time. It is used to measures the level at which family can afford to buy food, clothing, and live a comfortable life in the country. The consumer price index shows the percentage increase or decrease in the prices of consumer goods in the period in which it is measured. It is calculated as

CPI = current year price index / base year price index × 100%

Therefore, to adjust the social security and federal pensions to offset changes in the cost of living the consumer price index is the most appropriate measure of welfare to used. In the sense that the cost of living is the amount of money an average family will need to provide themselves with the basic necessities of life such as food, clothing ,and shelter. The consumer price index is the most appropriate to know the effect of increase or decrease in the prices of these goods on the low income earners in the country such as the people who receives social security benefits and the pensioners in the country. During inflation the purchasing power of the people in these categories is reduced which tend to have an effect on their standard of living.

6 0
3 years ago
Matthew's Fish Fry has a monthly target operating income of $7,200. Variable expenses are 60% of sales and monthly fixed expense
irina [24]

Answer:

The answer is C) 1.25

Explanation:

Operating Leverage= (operating income + fixed expenses) / operating income

Operating Leverage= ($7,200 + $1,800) / $7,200= 1.25

5 0
3 years ago
A buyer made an earnest money offer to purchase property, and the broker placed the funds in his trust account. After the seller
Alex17521 [72]

Answer: Interpleader

Explanation:

The broker just engaged in an Interpleader action which is an action that allows a person who does not own a certain property to get the claimants to the property to go to court for it. The Court will then decide who should get the property after proceedings.

The Broker does not own the deposit but seeing as he did not want to get into trouble with either the Seller or the Buyer, he put the deposit with the courts so that they would decide who owns the deposit.

7 0
2 years ago
In a neoclassical economy, assume that the government lowers both government spending and taxes by $100 billion. If the marginal
Zigmanuir [339]

Answer:

rise by $40 billion

Explanation:

Calculation to determine what the investment will be

Investment=$100 billion*(100%-60%)

=$100 billion*40%

=$40 billion

Therefore the investment will rise by $40 billion

3 0
3 years ago
How is the scientific method similar to or different from superstition,guessing,intuition,hope?
CaHeK987 [17]
Scientific method involves ways in which you would solve something while the others are just assuming or wondering what could happen.
3 0
3 years ago
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