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evablogger
1 month ago
5

On July 1, 1990, John invested $300 in an account that earned 8% simple interest. On July 1, 1993 he closed this account and dep

osited the liquidated funds in a new account earning q% simple discount. On July 1, 1998, John had a balance of $520 in the simple discount account. How much interest did he earn between July 1, 1993 and July 1, 1994?
Business
1 answer:
marusya05 [3.7K]1 month ago
7 0

Response:

The interest rate is 5.7%          $21.204

Clarification:

The formula for calculating simple interest is

I =

\frac{P*R*T}{100}

Given that

I = Interest, T = time;;R is rate; P = principal

John earned this interest by July 1, 1993 as follows:

           I = \frac{300*1* 8}{100} = 72

Consequently, the total amount in John's account by July 1, 1993 would then be

= $300 + $72= $372

This indicates he utilized these funds at an interest rate of q.

On July 1, 1998, John’s total was $520, meaning the interest accumulated in these five years equals $520 - $372 = $148.

Using the simple interest formula: Interest = PRT/100

148 =

\frac{520*5*q }{100}        = 14,800 =2600q

       q = \frac{14,800}{2,600}

Thus, the rate is found to be 5.7%

The interest amount between July 1, 1993, and July 1, 1994 calculates as

    I = \frac{PRT}{100} = \frac{372*5.7*1}{100}

          = $21.204

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stepan [3596]

Answer:

The market interest rate associated with a bond is also referred to as the

c.effective interest rate.

Explanation:

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4 0
2 months ago
A tiny South Pacific island country produces large quantities of coconut-based products. To protect this industry, the island go
Scilla [3833]

The response is:

Import Quota

Explanation:

The option B is incorrect because import duty refers to taxes levied on imported goods and does not restrict or protect the coconut-based products sector.

Option C is also unsuitable since an import tariff is aimed at raising the price of imported products which wouldn’t reflect on the increase of the price for imported goods in this scenario.

Similarly, option D isn't right because there are no subsidies received from the government by the company.

Thus, option A is the correct choice as import quotas limit the ability of companies to import certain goods and services to safeguard local manufacturers.

3 0
1 month ago
Given the following financial data for Boston Technology, compute the firmâs degree of combined leverage.
stepan [3596]

Response:

For the year 2010

Degree of combined leverage equals 3.82

For the year 2011

Degree of combined leverage equals 4.11

Clarification:

The degree of combined leverage of the company is computed using the formula provided:

Degree of combined leverage = Contribution margin / EBT

Where

Contribution margin is calculated as:

Contribution margin = Sales - Variable Costs

EBT (Earnings before tax) is calculated as:

EBT = EBIT - Interest

Now, calculate accordingly using the formula:

For 2010:

Contribution margin: $700,000 - $406,000

= $294,000

EBT = $119,000 - $42,000

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Contribution margin: $760,000 - $448,000

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EBT: $122,000 - $46,000

= $76,000

Degree of combined leverage: $312,000 / $76,000

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7 0
2 months ago
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marusya05 [3725]

Answer:

B

Explanation:

The Graphic Rating Scale is employed for assessing performance. This evaluation tool lists various traits, similar to how TrueBlue identifies characteristics like initiative, independence, cooperation, attention to detail, and punctuality, which are rated using a poor-to-excellent scale.

Many organizations utilize this evaluation method to assess employee performance.

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