Answer:
D. 10.0%
Explanation:
As the bank reqiresd 10% compensating balance the actual amount unrestricted for the loan is 48,000 x (1 - 10%) = 43,200
and from this amount we have to solve for the effective rate:
principal x rate = interest
48,000 x 0.09 = 4,320
now we divide the interest over the actual principal to know the effective rate:
4,320 / 43,200 = 0.10 = 10%
Answer:
a. It is not a fair deal for me.
The question is how much is $1,000 today when received in 12 months' time from now. The present value of $1,000 at 5% effective interest rate is $952 ($1,000 * 0.952). The other repayment of $1,100 in 2 years' time from now is worth $997.70 today at the 5% effective interest rate. This implies that my friend is repaying me $1,949.70 in present value terms.
For friendship sake, I may lend her the money, but in economic analysis terms, the NPV value will yield a negative value of $50.30 ($2,000 - $1,949.70). My friend is not actually paying me back the amount I would lend to her. She is paying me less than I actually would lend to her.
b. Cash Flow Diagram:
Year 1 Year 2
F1 F2
$1,000 $1,100 (Inflows)
Fo⇵.................⇵.......................⇵...........................⇵n period
Year 0
$2,000 (outflows)
Explanation:
The cash flow diagram for this loan is the graphical representation of the timing of the cash flows with a clear marking of the repayments made by my best friend in two instalments and the $2,000 that I lent to her. This cash flow diagram presents the flow of cash as arrows on a timeline scaled to the magnitude of the cash flow, where outflows are down arrows and inflows are up arrows.
The Net present value (NPV) of this loan shows the difference between the present value of repayments by my best friend and the present value of $2,000 that I lent to her over a period of 2 years. To obtain this difference, the present values of cash inflows of $1,000 in a year's time and $1,100 in two years' time are determined using the discount factor table based on the given interest rate of 5%.
Answer:
C
Explanation:
Market forces and of supply and demand
Answer:
The correct answer is a. increasing globalization.
Explanation:
Globalization is a fact that, today, cannot be denied. Its acceptance is such by society that on many occasions we do not stop to think about what consequences it can have, without going any further, in the area of logistics.
Within the globalization its first consequences can be observed in the fact that logistics operators have become part of the production chain of companies. The new forms of work, of the Just In Time or Just In Sequence type, have meant that many companies cannot have all the necessary infrastructures to be able to maintain these two types of production, since for them a level of technical knowledge and of economic potential, something that not all companies can do. Thanks to that, logistics operators have assumed that role within the Supply Chain while doing supply and distribution tasks, as well as storage, which take care of the moments of greatest tension in the supply chain and They ensure that the merchandise arrives at the right time.
