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ki77a [65]
3 years ago
15

A farmer needs to borrow $1,000. The local PCA will make a 2-year loan fully amortized at 10% (annual rate) with quarterly payme

nts. A $10 loan fee and stock purchase is required. The borrower stock requirement is the lesser of $1,000 or 2% of loan principal. Assume that sufficient money is borrowed to cover the $1,000, the fee and the stock requirement. Also assume that the stock requirement is returned to borrower when the loan is paid off and the last debt payment can be reduced by the stock amount. How much money needs to be borrowed
Business
1 answer:
yarga [219]3 years ago
8 0

Answer:

the  amount required to be borrowed is $1,030.60

Explanation:

The computation of the amount required to be borrowed is given below:

= (Sufficient money + loan fee) ÷ (1 - given percentage)

= ($1,000 + $10) ÷(1 - 0.02)

= $1,030.60

Hence, the  amount required to be borrowed is $1,030.60

We simply applied the above formula so that the correct value could comes and the same should be relevant

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he three main types of banks (Traditional, Credit Union, Online or Online-Only) have many tradeoffs with respect to technology,
Tema [17]
The saving rate from the highest to the lowest would be :

Traditional Banks  +/-  5 % of rates

Online banks +/-    4 % of rates

Credit Union +/-    2.5 % of rates

hope this helps
4 0
3 years ago
Rent control is usually justified on the grounds that it protects moderate- to low-income families from the burden of rapidly ri
horsena [70]

Answer:

c. equality.

Explanation:

Rent control is a government directive that limits the amount a landlord can charge as rent or for rent renewal. When the landlord is renewing rent there is a maximum percentage for rent increase.

Rent control is intended to create a level of equality for low-income earners and elderly people on fixed income.

This has been a successful initiative and has helped in balancing the standard of living of the target population.

5 0
4 years ago
Crane Company purchased a new machine on October 1, 2017, at a cost of $89,920. The company estimated that the machine has a sal
Nadya [2.5K]

Answer:

2017 depreciation expense= 10,060*3/12=$2,515

2018 depreciation expense=$10,060

Explanation:

The depreciation expense of machine for the whole year shall be calculated as follows:

Depreciation expense=[(89,920-9,440)/8]=$10,060

Since the machine is only used for 3 months in the year ended December 31, 2017, therefore the depreciation expense in 2017 will be calculated as follows

2017 depreciation expense= 10,060*3/12=$2,515

2018 depreciation expense=$10,060

5 0
3 years ago
Able Company’s unit manufacturing cost is:Variable Costs $50Fixed Costs 25A special order for 1,000 units has been received from
wel

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Unitary cost:

Variable Costs= $50

Fixed Costs= $25

A special order for 1,000 units has been received from a foreign company. The unit price requested is $55.

If the order is accepted, unit variable costs will increase by $2 for additional freight costs.

Because it is a special offer, we will not take into account the fixed costs.

Unitary cost= 50 + 2= $52

Effect on income= 1,000*(55 - 52)= $3,000 increase

5 0
3 years ago
You would like to combine a risky stock with a beta of 1.5 with U.S. Treasury bills in such a way that the risk level of the por
astra-53 [7]

Answer:

66.67 %

Explanation:

The computation of the percentage of the portfolio should be invested in Treasury bills is shown below:-

Let us assume beta be x

So the equation would be

Percentage of portfolio = x × (Beta of stock) + (1 - x) × (Beta of T - Bills) - 1

= x × (1.5) + (1 - x) × (Beta of T - Bills) - 1

1.5x + (1 - x) × (Beta of T - Bills) - 1

1.5x + 0 = 1

x = 1 ÷ 1.5

= 0.67

or

= 66.67%

7 0
4 years ago
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