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pogonyaev
3 years ago
9

Dr. Ruth is going to borrow $8,700 to help write a book. The loan is for one year and the money can be borrowed at either the pr

ime rate or the LIBOR rate. Assume the prime rate is 9 percent and LIBOR 0.5 percent less. Also assume there will be a $75 transaction fee with LIBOR (this amount must be added to the interest cost with LIBOR). a. What is the effective interest rate on the LIBOR loan
Business
1 answer:
Contact [7]3 years ago
3 0

Answer: 9.37%

Explanation:

The effective interest rate on the LIBOR loan is calculated as follows based on the information given in the question:

Principal = $8700

Prime rate = 9%

LIBOR net interest rate = 9% - 0.5% = 8.5%

Interest Cost will be:

= 8700 × 8.50 × 1/100

= 739.50

We the add the transaction Fee of $75 and thus will be:

= $739.50 + $75.00

= $814.50.

Then, the effective interest rate will be:

= $814.50 × 100/$8700

= $814.50 × $0.0115

= 9.37%

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Belinda is in charge of both accounting and investments and all of the employees involved with these functions at her firm. Beli
Andrej [43]

Belinda is in charge of both accounting and investments and all of the employees involved with these functions at her firm. Belinda is "Financial Manager".

<h3>Who is financial manager?</h3>

Financial manager examine financial information compiled by accountants, keep track of the company's financial situation, and create and carry out financial strategies.

The roles of financial manager are-

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Therefore, one of the most crucial duties of business owners and managers is financial management.

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3 0
2 years ago
A machine with a cost of $164,000, accumulated depreciation of $102,000, and current year depreciation expense of $25,500 is sol
Gre4nikov [31]

Answer:

$53,600

Explanation:

The computation of the cash flow from investing activities is shown below:

Cash flow from investing activities

Sale value of machinery $53,600

Net cash flow from investing activities $53,600

The current year depreciation expense is to be reported under operating activities and as we know that the investing activities record those activities which are held for purchased and sale of long term assets so the sale value fo machinery is only reported

4 0
3 years ago
In the​ swim-lane format of a business process​ model, all​ _______ for a role are included in that​ role's swim-lane.
boyakko [2]
<span>In the​ swim-lane format of a business process​ model, all​ activities for a role are included in that​ role's swim-lane.

The swim lane is used to show flow diagrams or charts that list out the responsibilities of a business and its employees. These lanes can be arranged horizontally or vertically. Think of them as lap swim lanes in a pool, that helps keep the business roles in line. </span>
8 0
3 years ago
Sweet Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction
Reika [66]

Answer:

$4,775,565.49

Explanation:

The computation of the selling price of the bond is shown below:

Particulars                  Amount PV factor 6%       Present value

Semi-annual interest $216,209 19.60044    $4,237,791.53

Principal                         $3,088,700     0.174110131  $537,773.96

Total                                                       $4,775,565.49

Working notes

Semi-annual interest $216,209 = $3,088,700 × 14% × 6 ÷ 12

PV factor 3%:    

Semi-annual interest 13.76483115      = {(1 - (1.06)^-30) ÷ 0.06 }

Principal 0.174110131  = {1 ÷ 1.03^30}

6 0
4 years ago
Which of the following is NOT one of the biggest B2C catalogers? a. The Limited b. Sears c. Williams-Sonoma d. JCPenney
Anna71 [15]

Answer:

The correct option is;

a. The Limited

Explanation:

Business-to-Consumers or B2C is the means by which  company products and services are sold directly to the end-users or consumers. B2C companies are those that deal directly with the end users

Sears, has over 400 outlets, Williams-Sonoma,  is a publicly listed company that deals on home furniture and kitchen ware products   and J. C. Penny is also a listed department store chain having 840 locations o outlets.

8 0
3 years ago
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