question text <u>WITH </u>missing information:
After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at an APR of <em>12 percent compounded monthly</em> or from a bank at an APR of <em>13 percent compounded annually.</em> Which alternative is more attractive?
If you borrow $100 from a finance company at an APR of 9% percent compounded for year, how much do you need to payoff the loan?
Answer:
The finance company option is better as we are taking the loan we want the lower rate possible.
We need $109 to payoff the loan of $100 at 9% annualy after a whole year.
Explanation:
We solve for the effective rate of 12% compounded monthly
= 1.12682503 = 0.126825 = 12.6825%
As this rate is lower than 13% this option is better
If we take 100 dollars after a year we have to pay:
$100 x (1 + r) = 100 x (1 + 0.09) = 100 x 1.09 = $109
Answer:
B. its application to real-life organizations
Explanation:
The answer to this is most likely B because the strength of the team leadership model is application to real-life organizations.
Answer:
B. Higher interest rates in the United States relative to Canada.
D. Decreasing GDP in the United States than in Canada.
Explanation: A flexible currency market is market where the exchange rate is determined by some economic factors which includes
High interest rate- if the interest rate on the United States is higher than that in Canada most investors will be moved to Borrow money from Canada instead of Borrowing from United States leading to reduced demand for The United States dollar which will lead to depreciation of the United States Dollar.
Decreasing GDP- when the gross domestic product of the United States economy decreases the general productivity level in the United States is decreased which will discourage foreign investors from investing in the United States leading to reduced demand for the United States Dollar.
Answer:
$500 gain and $185 tax
Explanation:
Sale of share = No. of NQOs × No. of shares × Selling price per share
= 10 × 10 × $20
= $2,000
Basis = No. of NQOs × No. of shares × share price @$15
= 10 × 10 × $15
= $1,500
Gain realised = Sale of share - Basis
= $2,000 - $1,500
= $500
The tax is calculated as follows:
= Gain realised × marginal tax rate
= $500 × 37%
= $185
