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lesya [120]
3 years ago
8

​(Estimating the cost of bank credit​) Paymaster Enterprises has arranged to finance its seasonal​ working-capital needs with a​

short-term bank loan. The loan will carry a rate of 1616 percent per annum with interest paid in advance​ (discounted). In​ addition, Paymaster must maintain a minimum demand deposit with the bank of 1111 percent of the loan balance throughout the term of the loan. If Paymaster plans to borrow ​$120 comma 000120,000 for a period of 44 ​months, what is the effective cost of the bank​ loan? Hint​: Assume the Paymaster does not have sufficient funds in the bank to satisfy the compensating balance requirement.
Business
1 answer:
damaskus [11]3 years ago
4 0

Answer:

19.12%

Explanation:

Annual interest rate = 16%

Minimum demand deposit = 11%

Loan = 120,000

Months = 4

First, we calculate the interest expense for the 4-month loan as follows:

Interest = 0.16 × $120,000 × 4 ÷ 12

             = $6,400

Assuming that Paymaster has to leave 11% of the loan idle in a compensating balance,the effective cost of credit can be calculated as follows:

APR = [$6,400 ÷ ($120,000 - 13,200 - 6,400)] × (12÷4)

       = 19.12%

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Mintzberg determined that managers tend to rely more heavily on ______ communication than ______ communication when conducting b
Alika [10]

Answer:

Verbal; written.

Explanation:

Professor Henry Mintzberg is a prolific and an amiable author on business and management. He was born on the 2nd of September, 1939 and works at the Desautels Faculty of Management in McGill University, Canada.

According to Prof. Mintzberg in his book titled "Mintzberg on Management: Inside our Strange World of Organizations," there are ten (10) primary roles which can be used to classify the functions of a manager; figurehead, liaison, leader, monitor, negotiator, entrepreneur, disturbance handler, spokesperson, resource allocator and disseminator.

Additionally, Mintzberg determined that managers tend to rely more heavily on verbal communication than written communication when conducting business. This is simply because managers consider a written communication such as memo, reports, or letters consume more time when compared with verbal communication such as telephone calls, meetings or face-to-face conversations .

5 0
3 years ago
A new security system has a price-tag of $7,500, but should save your company $3,275 each year for the next 10 years in reduced
goldenfox [79]

The IRR of the security system is 42.40.

An example of security is while you are at domestic with the doorways locked and also you feel secure. An employer or department whose venture is safety or safety, esp. A non-public police pressure is employed to patrol or protect a construction, park, or another vicinity. if you see an interloper, name safety.

Securities are fungible and tradable monetary gadgets used to elevate capital in public and personal markets. There are typically three kinds of securities: fairness—which presents possession rights to holders; debt—basically loans repaid with periodic payments; and hybrids—which combine elements of debt and fairness.

Security trouble is any unmitigated risk or vulnerability in your device that hackers can use to do damage to structures or statistics. This includes vulnerabilities inside the servers and software connecting your business to customers, as well as your enterprise strategies and those.

Using TVM Calculation,

Present Value of savings = [FV = 0, PMT = 3,375, N = 10 , I = 7,500]

PV = 3375

PI = 33750/7,500

PI = 4.50

Time Cashflows

0        -$7,500.00

1         $3,275.00

2         $3,275.00

3         $3,275.00

4         $3,275.00

5         $3,275.00

6         $3,275.00

7         $3,275.00

8         $3,275.00

9        $3,275.00

10        $3,275.00

IRR        42.39%

Learn more about security here brainly.com/question/7449721

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8 0
1 year ago
Inefficiency exists in a market when a good is
ddd [48]

Answer:

d. being consumed by buyers who value it most highly."

Explanation:

Since the efficiency arises when optimal amount of each good and service is being produced and consumed in the economy.

Hence it can be said that inefficiency exists in the economy when a good not being consumed by the consumer who value it highly.

3 0
3 years ago
Clement applies for a home loan at global bank inc. as part of the process, he provides his personal details to the bank. the ba
Hitman42 [59]

The bank’s action is considered to be legal though it is unethical. It is because having to take the information of Clement is legal though it is considered unethical because they used his information just to sell him the insurance policies.

6 0
3 years ago
What are the reason why there is government revenue surplus?​
Virty [35]

Answer:

Impact on growth.

Explanation:

If the government is forced to increase taxes / cut spending to meet a budget surplus, it could have an adverse effect on the rate of economic growth. If government spending is cut, then it will negatively affect AD and could lead to lower growth. A budget surplus doesn't have to cause lower growth.

7 0
3 years ago
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