Response:
Clarification:
I apologize, but I only need points, sorry to trouble you; please ask someone else, sorry;)
Answer:
6.43%
Explanation:
The insurance company will calculate the internal rate of return utilizing the method detailed below:
Cash flows Year involved Present [email protected]% Present [email protected]%
($100) 1-20 ($851) ($1,487.75)
$3,310 20 $492 $1,832.67
($359) $344.92
IRR=A%+ (a/a-b)*(B%-A%)
A%=10% a= ($359) B%=3% b=$344.92
IRR=10%+(-$359/-$359-$344.92)*(3%-10%)
=6.43%
A short term loan is the most suitable financing choice for a neighborhood Lemonade stand as it qualifies as a small business.
Explanation:
This type of loan is designed to meet the capital requirements of small enterprises. Typically, these loans are to be repaid within a year. The interest paid on short-term loans tends to be lower in comparison to long-term loans.
Banks readily provide these loans as they promote small business initiatives. In the case of short term loans, the risk is generally minimal, and the profit can be substantial if the business is successful. Therefore, for a small venture like a lemonade stand, a short-term loan represents the most advantageous borrowing solution.
Response:
the choice is D
.
Reasoning:
I just completed this on plato
