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Blizzard [7]
3 years ago
15

On September 1, 2021, Hiker Shoes issued a $100,000, 8-month, noninterest-bearing note. The loan was made by Second Commercial B

ank where the stated discount rate is 11% Hiker's effective interest rate on this loan (rounded) is: ____________
Business
1 answer:
djyliett [7]3 years ago
6 0

Answer: 11.87%

Explanation:

Effective interest rate on this loan is:

= Interest payment / (Note - Interest payment) * 12/8 months

Interest payment:

= Note * Interest rate * 8/12 months

= 100,000 * 11% * 8/12

= $7,333

Effective interest:

= 7,333 / (100,000 - 7,333) * 12/8

= 11.87%

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An investment offers $5,900 per year for 15 years, with the first payment occurring one year from now. If the required return is
drek231 [11]

Answer:

Today, the investment is worth $31,997.29

Explanation:

Giving the following information:

An investment offers $5,900 per year for 15 years, with the first payment occurring one year from now. The required return is 6 percent

First, we need to calculate the final value, using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual pay= 5,900

n= 15

i= 0.06

FV= {5,900*[(1.06^15)-1]} / 0.06= $137,328.22

Now, we can determine the present value:

PV= FV/ (1+i)^n

PV= 137,328.22/ 1.06^25= $31,997.29

4 0
3 years ago
Lein's net income is $200,000 and its operating cash flows are $240,000. The company reports total assets of $1.6 million and $1
yarga [219]

Answer:

14.1%

Explanation:

Cash return on assets is the ratio of a company's operating cash flow to its average total assets. It shows how a company is generating cash flow from its assets and compares a company’s profitability with other companies.

Cash return on assets = operating cash flow / average total assets

Given that:

operating cash flows = $240,000

Average total assets = ($1.6 million + $1.8 million) / 2 = $1.7 million.

Therefore, Cash return on assets = $240000 / $1.7 million = 0.141 = 14.1%

6 0
3 years ago
Definition of collateral​
Romashka [77]
Collateral- Something pledged as security for repayment of a loan, to be forfeited in the event of a default.
8 0
3 years ago
Read 2 more answers
Latoya has a lot of doctor’s visits coming up, and her children all need vaccinations for the upcoming school year. Which type o
LekaFEV [45]

Answer:

Health insurance

Explanation:

The other insurances listed are all insurances paid out when you die.

5 0
3 years ago
Tyrone, a project manager at a computer firm, needs to monitor the schedule of a critical project. What should Tyrone do first?
MA_775_DIABLO [31]

Answer:

The correct answer is letter "C": Identify major scope creep.

Explanation:

Scope creep in project management refers to those uncontrolled changes in the scope of a plan. This can be caused when the scope of the project is not defined or controlled correctly. It may cause schedule variances so it is important to deal with it during the first steps of monitoring a critical project.

4 0
3 years ago
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