The consideration given to the bank for providing loan facility, in return of such facility an amount is paid which is over and above the principle amount of loan, this amount can be said as interest.
Interest are of two types i.e. (a) Simple interest (b) compound interest
<h3>simple interest</h3>
The amount of interest which is calculated at a fixed predetermined rate every year on the principle amount and paid until the loan is settled in full.
Given in the Question
Principle is $20,000
Rate is 3%
Time is 1 year
<h3>Calculation</h3>
The simple interest is calculated by multiplying principle with the rate and than the outcome is multiplied with time to find simple interest.
Therefore the amount of interest received by Michael at the end of first year on an amount of $20,000 at a interest rate of 3%will be $600.
Learn more about simple interest here:
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Answer:
probability = 0.008
probability = 0.0256
Explanation:
we know here probability of defective is 0.2
so probability of not defective is 1 - 0.2 = 0.8
as we know 3 item is arrive off process line in succession
so The probability that an item is defective is
as P(defective) = 0.20
as all item are independent so
probability that all three items are defective is
probability = 0.20 × 0.20 × 0.20 = 0.008
and
probability that exactly 3 of next 4 are defective
so number of way that can choose 3 out of 4 is
= 
= 4
so as all are independent probability is
probability = ( the number of way to choose 3 out of 4 ) × ( 3 item defective ) × ( 1 item not defective )
probability = 
× 0.2³ × ( 1- 0.2)
probability = 4 × 0.008 × 0.8
probability = 0.0256
Answer:
$9583.89
Explanation:
value of each payment (P): $2,100
interest rate per period (r): 12/100 = 0.12
number or periods (n): 7
present value of annuity (PV): ??
using the annuity formula: 
PV = $9583.89
Answer:
B. average total cost
Explanation:
In the terms of economics, the Average total cost is the cost which is obtained by dividing the total production cost involved by the total number of output units.
The average total cost also determines the cost per unit for a product.
It helps in deciding the selling cost of the product for a specified profit margin.
Answer:
$2,610
Explanation:
Calculation for how much money you must borrow.
Using this formula
Amount to be borrowed =( Purchased shares* Per share price*(Initial margin requirement percentage)
Let plug in the formula
Amount to be borrowed= 150 shares*$60 per shares *(1-0.71)
Amount to be borrowed=$9,000*(0.29)
Amount to be borrowed=$2,610
Therefore how much money you must borrow will be $2,610
