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navik
21 day ago
14

A U.S. exporter sells $150,000 of furniture to a Latin American importer. The exporter requires the importer to obtain a letter

of credit. When the bank accepts the draft, the exporter discounts the 120-day note at a 5.25 percent discount. What is the exporter's true effective annual financing cost?
Business
1 answer:
arsen [3K]21 day ago
6 0
The effective annual financing cost associated with the furniture purchase amounts to 5.52%. The calculation shows that the true cost is derived by considering the total paid versus the principal. After 30 years, the future amount indicates an interest rate of 4.35% compounded monthly.
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The ​ S&P 500 index delivered a return of 10​%, 15​%, 15​%, and −25​% over four successive years. What is the arithmetic ave
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Answer: The average annual arithmetic return is 3.75%.

Explanation:

Year 1 = 10%

Year 2 = 15%

Year 3 = 15%

Year 4 = -25%

Total return = 15%

The arithmetic average annual return is calculated as (Year 1 return + Year 2 return + Year 3 return + Year 4 return) / 4 = 15% / 4 = 3.75%.

5 0
1 month ago
Dominik Corporation purchased a machine 5 years ago for $527,000 when it launched product M08Y. Unfortunately, this machine has
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The opportunity cost amounts to $532,000. This represents the cost of the most preferable alternative that was not selected. In this case, rejecting the investment project meant foregoing the potential return of $532,000.
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15 days ago
El Niño wind patterns affected the weather across the United States during the winter of 1997–1998. Suppose the demand for home
stepan [3027]

Answer:

The price elasticity of demand for home heating oil is -0.36.

Explanation:

To find the price elasticity of demand for home heating oil, we can utilize the formula:

Elasticity of demand = (dQ/dPhho)*(P/Q)

Based on the information provided:

demand for home heating oil in Connecticut = Q = 20 – 2 Phho + 0.5 Png – TEMP

price of home heating oil = $1.20

price of natural gas = $2.00

<psubstituting into="" the="" demand="" equation="" yields:="">

Q = 20 – 2*1.2 + 0.5*2 – 12

Q = 6.6

Hence, we calculate price elasticity of demand as follows: (-2)*(1.2/6.6)

Thus, price elasticity of demand = -0.36.

The price elasticity of demand for home heating oil is -0.36.

</psubstituting>
5 0
25 days ago
Karen made a commission of $3,522.75 on the sale of a property. she split her commission equally with her broker which is 50% to
Mariulka [3209]

Karen dividió su comisión a partes iguales con su corredor, por lo que ella recibe:

Comisión de Karen = $3,522.75 × 0.5 = $1,761.375

El corredor de Karen se llevó el 55 % del total de la comisión, por lo que Karen obtiene solo el 45 % del total. Entonces, la comisión total debe ser:

Comisión total = $1,761.375 ÷ 0.45 = $3,914.17

Con una tasa del 7 %, el precio de venta del inmueble es:

Precio de venta = $3,914.17 ÷ 0.07

<span>Precio de venta = $55,917</span>

6 0
1 month ago
Green Goddess Developers is a large nationwide landscape company with home offices in Libertyville, IL. The local media often gu
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The selected answer is C.
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