Answer:
option (b) 9.5%
Explanation:
Data provided in the question:
Loan Amount = $2,000,000
Annual interest rate = 9%
Required compensating balance = $100,000
Now,
Effective interest rate(EIR)
= (loan × Annual interest on loan) ÷ (Loan - Required compensating balance)
= ($2,000,000 × 9% ) ÷ ( $2,000,000 - $100,000 )
= ($2,000,000 × 0.09 ) ÷ ( $1,900,000 )
= 0.0947 ≈ 0.095
or
= 0.095 × 100%
= 9.5%
Hence,
the answer is option (b) 9.5%
Answer:
a) The federal funds rate has a higher interest rate than the discount rate to encourage borrowing
Explanation:
The Feds fund rate is the rate at which banks borrow from each other usually overnight, while the discount rate is the interest rate charged by the Fed to commercial banks for borrowing directly from the Fed.
These borrowings help the commercial banks meet up their liquidity requirements.
The discount rate is higher than the Fed funds rate. This is to encourage banks to borrow from each other instead of borrowing directly from the Federal Reserve.
The Fed fund rate also tends to affect the prime lending rate (rate at which banks lend money to their clients).
So the statement - The federal funds rate has a higher interest rate than the discount rate to encourage borrowing. Is not correct
A. Independence
When your in a realtionship, your mate will as be there for you doing hard times and good times. There is no Independcne in a romantic realtionship.
Independence means being strong and able to survive ALONE.
Alone, alone, alone!!!!!
Answer:
The company report as loss on discontinued operations in its 2021 income statement is $1,990,000
Explanation:
The computation of the loss on discontinued operations is shown below:
= Division loss from operations
= $1,990,000
As no impairment loss is there because there is a gain as fair value is more than the book value.
For calculating the loss on discontinued operations, the gain should not be considered. So, only Division loss from operations is relevant and hence taken in the computation part
The gain would be
= $3,630,000 - $3,000,000
= $630,000
+ they are more likely to provide the great service or product cuz they want wat we called 'customer loyalty'
-since they only think about profit tehy might do unethical things like decieving ppl
