1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alexeev081 [22]
3 years ago
10

The York Company has arranged a line of credit that allows it to borrow up to $64 milion at any time. The interest rate is .640

percent per month. Additionally, the company must deposit 6 percent of the amount borrowed in a non-interest bearing account. The bank uses compound interest on its line-of-credit loans. What is the effective annual rate on this line of credit?
Business
1 answer:
klio [65]3 years ago
7 0

Answer:

8.46%

Explanation:

Monthly interest rate = 0.640%

Number of month in year = 12

Investment in non-interest bearing = 6%

Effective annual interest = [(1 + Monthly interest rate)^Number of month] - 1 / (1 - Investment in Non-interest)

Effective annual interest = [(1 + 0.640%)^12] - 1 / (1 - 6%)

Effective annual interest = (1.0064)^12 - 1 / 0.94

Effective annual interest = 1.07956187072 - 1 / 0.94

Effective annual interest = 0.07956187072 / 0.94

Effective annual interest = 0.084640288

Effective annual interest = 8.46%

Hence, the Effective annual is 8.46%.

You might be interested in
Which aspect of marketing (branding, promotion, or market research) is the most important for companies to consider when
Levart [38]
Market research.
The firm often goes into uncharted Territories for themselves and takes heavy risks in places unknown to them.
For example, McDonald’s Setting up operations in India made its menu suit the Indian taste pallet and was able to carve out a market shape.
- I hope this helps!!! Mark me brainliest
7 0
3 years ago
Last year, Myron purchased a $10,000 certificate of deposit with a 3% rate of interest from his bank. The government reported th
Dmitrij [34]

Answer:

Myron gains, while the bank loses.

Explanation:

Fallen in prices is usually cause by deflation i.e a general decrease in the prices of goods and services which enhances the purchasing power of money.

In this case, 5% fall in price will increase the value of the Myron investment with bank and caused bank more money .

8 0
3 years ago
Is it possible to decrease inflation without causing a recession and its concomitant increase in unemployment? The orthodox answ
NeTakaya

Answer:

The answer is: E) It would not necessarily be considered high elsewhere

Explanation:

Usually the inflation rate in the US and Europe is around 1-3%. In the early 1980's the US inflation rate was above 10% so it was considered huge. But if you consider it against inflation rates in other countries, like Argentina for example, which currently has an annual inflation rate of over 60% then it wasn't that big. During the 1980's many countries suffered from hyperinflation, with monthly inflation rates of over 50%.

So the high inflation rate in the US and Europe wasn't necessarily high for other countries.

5 0
4 years ago
There are 12 general categories of threat to an organization's people, information, and systems. List at least six of the genera
Alenkinab [10]

Answer:

1. Human Error: an example is disregard to safety measures.

2. Compromises to Intellectual Property: an example is piracy of an organization's product.

3. Forces of Nature: an example is earthquake.

4. Information extortion: an example is coercion or blackmail.

5. Quality of service deviation: an example is an epileptic or poor power supply.

6. Industrial espionage: an example is unethical hacking of data.

Explanation:

A threat to an organization's people, information, and systems is basically any circumstances or events that poses a potential danger, damage or adverse affect to its smooth running.

These threats can be classified into six (6) categories and these are;

1. Human Error or failure: this are errors that arise as a result of having incompetent employees (slips and lapses) or mistakes stemming from the workers. <em>An example of human error is an employee that disregard safety measures. </em>

2. Compromises to Intellectual Property: this usually occurs when an intellectual property is stolen illegally from an organization. <em>An example is piracy of an organization's product.</em>

3. Forces of Nature: this is usually caused by a natural disaster. <em>Examples of forces of nature are flood, earthquake, fire etc. </em>

4. Information extortion: this arises when sensitive data about an organization is held through <em>coercion, bribery or computer hacking</em>.

5. Quality of service deviation: this would occur when there's a shortage in the quality of service received by an organization, contrary to what is expected or required. <em>Examples are poor power supply, poor internet service etc. </em>

6. Industrial espionage: this is as a result of loosing sensitive data to <em>unauthorized individuals or hackers.</em>

7 0
3 years ago
Under an acceptable method of costing by-products, inventory costs of the by- product are based on the portion of the joint prod
saw5 [17]

Answer:

b. plus any subsequent processing cost.

Explanation:

In the case of the acceptable costing method for by-products the inventory cost that are depend upon the joint cost should be distribution to the by-product plus if there is any processing cost

that means

Inventory cost of the bu-product = joint cost + processing cost

Therefore the same should be considered

5 0
3 years ago
Other questions:
  • What is the economic definition of​ utility? Utility is A. the sum of consumer and producer surplus. B. the change in enjoyment
    6·2 answers
  • You go to the grocery store every 4 days. your friend goes to the grocery store every 10 days. if you and your friend both go to
    12·1 answer
  • Gross billings for merchandise sold by Lang Company to its customers last year amounted to $12,520,000; sales returns and allowa
    7·1 answer
  • Diversification is important in investing because…A. It helps you to balance your risk across different types of investments.B.
    15·2 answers
  • On 12/31/2020, Heaton Industries Inc. reported retained earnings of $425,000 on its balance sheet, and it reported that it had $
    8·1 answer
  • Storico Co. just paid a dividend of $1.50 per share. The company will increase its dividend by 20 percent next year and then red
    9·1 answer
  • When a $1000 bond is initially sold at 5 percent "coupon" yield for 30 years, $50 (.05 x $1,000) interest per year is paid to th
    14·1 answer
  • Cobe Company has already manufactured 28,000 units of Product A at a cost of $28 per unit. The 28,000 units can be sold at this
    10·1 answer
  • Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. Instructions: Enter your answers as whol
    6·1 answer
  • 3. If you are the victim of fraud in Oklahoma, the best place to start is by
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!