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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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This is an example of Simpson’s paradox

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3 years ago
You plan on making a $235.15 monthly deposit into an account that pays 3.2% interest, compounded monthly, for 20 years. At the e
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Answer:

Monthly payment = $769.27

Explanation:

First we have to determine the future value of the ordinary annuity:

Payment = $235.15

N = 20 * 12 = 240

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Using a financial calculator and the FV function, the FV = $78,910.41

Again, using the financial calculator or Excel, you can determine the monthly payment:

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8 0
3 years ago
Which of these statements is true about professional skills? A. They are only important in jobs that require a college degree. B
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D. They are skills that employers in all lines of work are looking for.
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3 years ago
Marsha and Antonio make a contract in which Marsha agrees to sell Antonio an expensive and rare piece of art. In the contract, M
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Marsha and Antonio's statements are examples of representations and warranties, as in a contract for the purchase and sale of a work of art there must be agreements that protect and benefit the parties.

<h3 /><h3>Features of a contract</h3>

Corresponds to a formal and consensual document that must be based on legality to identify an economic transaction between two or more parties, establishing the rights and obligations of both.

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The correct answer is:

B. Representations and warranties

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