Answer:
The highest affordable APR is 7.192%.
Explanation:
A person wants to borrow $93,000 from local bank to buy a new sailboat.
The maximum affordable monthly payment or EMI is $1,850.
The loan period is 60 months.
Suppose, monthly interest rate = r
93000 = 
At r =.6 %
Present value of loan repayment = $92984.94
At r=.5%
Present value of loan repayment = $95692.29
Through the method of interpolation,
r= .5% + ((95692.29 - 93000)/( 95692.29 - 92984.94))*(.6% - .5%)
r=.5994%
Annual interest Rate
= .5994%*12
= 7.192%.
Technical college, junior colleges
Answer:
shift demand and supply for loanable funds to the right (up), increasing interest rates.
Explanation:
According to the Fisher hypothesis when there is an increase in the expected inflation there is an equal increase in nominal interest rates.
As interest rates rise demand and supply for loanable funds will rise. This is illustrated in the attached diagram. Interest rate moves from i0 to i1.
Inflation is a reduction in the purchasing power of money. When inflation increases money regulation agencies reduce supply of money as a way to reduce price increase. This in turn reduces the amount of loanable funds commercial banks have to give out
Answer and Explanation:
The transactions 3 6 and 8 represents that the expenses are incurred which results in increased and expenses and the transaction 4 and 5 shows that there is an increased in revenue
The journal entry is shown below:
For transaction 3
Rent expense
To Cash
(Being the rent expense is paid for cash is recorded)
As the expense has debit balance so it would be increased
For transaction 6
Electricity expenses Dr
To Cash
(Being the energy usage is paid for cash is recorded)
As the expense has debit balance so it would be increased
For transaction 8
Advertising expense Dr
To Account payable
(Being the advertising expense is recorded)
As the expense has debit balance so it would be increased
For transaction 4
Account receivable Dr
To Service revenue
(Being the service is provided)
As the revenue has credit balance so it would be increased
For transaction 5
Cash Dr
To Service revenue
(Being the service provided is recorded)
As the revenue has credit balance so it would be increased
The attachment is provided for better understanding
The other transactions represent the assets, liabilities and stockholder equity
