Holland Construction Co. has an outstanding 180-day bank loan of $400,000 at an annual interest rate of 9.6%. The company is required to maintain a 14% compensating balance in its checking account. Wh
Answers
Holland Construction Co. has an outstanding 180-day bank loan of $400,000 at an annual interest rate of 9.6%. The company is required to maintain a 14% compensating balance in its checking account. What effective annual interest rate does the firm pay on its loan?
The effective annual interest rate is the true interest rate earned or paid on an investment or loan. It is a measure that takes into account the compounding of interest. It is calculated by taking into consideration the nominal or stated rate of interest and the frequency with which interest is compounded over a year. The compensating balance is a minimum average balance that a bank account holder must maintain in order to avoid paying some fee or to receive some benefit, such as earning interest.
The compensating balance is often expressed as a percentage of the loan amount. The effective annual interest rate on Holland Construction Co.'s loan can be calculated using the following formula: Effective annual interest rate = [(1 + nominal annual interest rate / number of compounding periods) ^ number of compounding periods] - 1The nominal annual interest rate is 9.6%. The compounding period is 180 days, or 0.5 years.
The loan amount is $400,000, and the compensating balance required is 14% of the loan amount, or $56,000. Therefore, the effective loan amount is $400,000 - $56,000 = $344,000.The effective annual interest rate can be calculated as follows: Effective annual interest rate = [(1 + 0.096 / 2) ^ 2] - 1 = 0.1007 or 10.07%Therefore, the effective annual interest rate that Holland Construction Co. pays on its loan is 10.07%.
To know more about compensating visit :
https://brainly.com/question/28250225
#SPJ11
Related Questions
which task is associated with the organizing function of management?
Answers
Task is associated with the organizing function of management is preparing an organizational chart, locating resources, assigning tasks, and establishing procedures for accomplishing goals.
Option C and E are correct.
Organizing function :The management function of organizing involves allocating human resources and creating an organizational structure to ensure the achievement of goals. In order to achieve goals, the organizing function of management entails bringing together the physical, financial, and human resources of the company. Part of leading is managing and communicating ideas and instructions to employees and inspiring them to work efficiently.
What are management's four organizing functions?Planning, organizing, leading, and controlling are the four aspects of management. You need to be able to do all four while also managing your team and work environment.
Incomplete question :
which task is associated with the organizing function of management?
A.problem solving
B.strategic planning
C.allocating resources, assigning tasks, and establishing procedures for accomplishing goals
D. -staffing the organization
E. preparing an organizational chart
Learn more about organizing function :
brainly.com/question/14447724
#SPJ1
Mandy used to work as a costume designer at her local theatre until she left work 3
years ago to bring up her daughter Natalie, now 4 years old. Mandy now works from
her house in Slough where she provides, makes and sells hand made glove puppets.
At the moment she sells at local craft fairs and through word of mouth. She now
wants to expand her business to include an on line shop and also to provide puppet
shows for children's parties and puppet making workshops for slightly older
children's parties.
1. Identify 2 reasons why Mandy may need to raise finance.
(2 marks)
2. Explain 1 advantage and 1 disadvantage to Mandy of taking out a bank loan.
(4 marks)
3. Mandy is considering applying for an additional mortgage on her house to
finance the business expansion. Do you think this is a good idea? Justify your
(9 marks)
answer.
Answers
Answer:
1. Mandy may need to raise a finance because she wants to expand her business, so therefore she may need extra money.
2. 1 advantage of taking out a bank loan is that she could build up her business with the money she’s taking out and the disadvantage is that her business may not work out or she won’t be able to pay the bank back
3. It may be a good idea to finance the business expansion because she may or may not grow her business after expanding it. But after expanding it there is possible chances of her business working out and growing more.
Explanation:
Which is considered part of a person’s income for the year?
Answers
Answer:
Gross income is everything that an individual earns during one year, both as a worker and as an investor. Earned income includes only wages, commissions, bonuses, and business income, minus expenses, if the person is self-employed.
Explanation:
what is nursing ?why is it needed?
Answers
Answer: What type of nursing?
Which of the following describes buying insurance? (1 point)
O The premium is a cost that would be higher if the likelihood of the loss were lower.
O A premium is a benefit that the insured receives from the insurer.
O A premium is a cost that increases if the risk of a financial loss increases.
O A copayment is a benefit that might increase if the premium is decreased.
Answers
When purchasing insurance, a premium is a cost that rises as the likelihood of a monetary loss increases.
Is purchasing insurance a risky endeavour?The right response is transfer, the risk is transferred to the insurance business when an investor, in this situation, purchases an insurance cover. This indicates that the insurance company will compensate the insured should the risk covered by the policy materialise. Consequently, purchasing insurance is a method of transferring risk.
What does the definition of an insurance premium mean?the monthly premium you pay for health insurance. You typically have to pay a deductible, copayments, and coinsurance in addition to your premium for your health care.
To know more about insurance visit:-
https://brainly.com/question/30135498
#SPJ1
1. Describe three different types of cash receipts that a business may record. Also identify the
document used
2. Describe typesdifferent types of cash payments that a business may record. Also identify the
document used.
Answers
answer 1 in the attachment ✌️✌️✌️
A workshop is a meeting in which individuals do physical labor.
False
True
Answers
TRUEEEEEEEEEEEEEEEEEEEEEEE
Answer:
Its trueeeeeeeeeeeeeeeeee
Miriam and Devon are both upper-level managers, but have very different decision-making styles. Please name and describe in your own words four decision making processes that could be used to guide their decision making. In addition, provide and explain in your own words 10 ways in which their decision could, in general, be derailed or hindered, and explain each.
Answers
There are various decision making styles of managers, the 4 different kind of manager decision making styles are listed below,
1. Directive
2. Analytical
3. Conceptual
4. Behavioral
Each of these method depend on the style of manager and the situation he is facing.
The directive style decision making style is used for firm decision making, in which ideas are not appreciated by the juniors. This is an aggressive decision making style
Analytical decision making style is one which focuses on finding the best possible solution to the problems after considering all alternative solutions
Conceptual decision making style is one in which managers are achievement oriented and they wish to see brighter future.
Behavioral decision making style is one in which nature of manager is persuasive and he believes gathering ideas from colleagues before making a decision.
Learn more at https://brainly.com/question/24383317
Which of the following is an argument in favor of government regulation in a free-enterprise system?
Responses:
-Alleviation of wealth gaps
-Higher business costs
-Competition between businesses
-Inefficient processes
Answers
An argument in favor of government regulation in a free-enterprise system response as an alleviation of wealth gaps. The correct option is (A).
What do you mean by free- enterprise system?An economic system referred to as free enterprise gives people the freedom to manage their own finances without interference from the government and as independently profitable companies.
To uphold law and order, defend the right of individuals to own property, and implement voluntarily entered-into agreements, the government has the coercive authority. In substance, the free business system functions under the protection of the government.
Therefore, an argument in favor of government regulation in a free-enterprise system response as an alleviation of wealth gaps.
To know more about the free enterprise system, visit:
https://brainly.com/question/30338990
#SPJ1
marked-to-market involves the trading of futures contracts in major currencies and offering price transparency and efficiency in addition to elimination of counterparty risk due to guaranteed payments on contract.
Answers
Marked-to-market involves the trading of futures contracts in major currencies and offering price transparency and efficiency in addition to elimination of counterparty risk due to guaranteed payments on contracts. [FALSE]
About Marked-to-marketInvestment instruments such as bonds and stocks are generally traded on the market so there are always changes or price fluctuations. Considering that these characteristics provide investors with potential gains and losses, each investment portfolio containing instruments that experience price fluctuations must be recorded at prices formed on the market, not book values. This mechanism, namely recording the price or value of a security, portfolio or account to reflect the latest market value is known as Marked To Market.
Why is Market To Market neededEvery investor has the desire to invest or withdraw their funds at different times. In order not to harm the investor concerned or other investors who are still in the portfolio, every purchase or withdrawal of funds must truly reflect the fair value that actually occurs in the market, that's why Marked To Market is used. The application of Market To Market in portfolio valuation makes the profits or losses experienced by investors truly reflect the profits or losses that occur due to price changes in the market, not due to price manipulation made by the investment manager.
Learn more about marked-to-market https://brainly.com/question/14187235.
#SPJ4
All of the following entities regulate variable life policies EXCEPT
A. The Guaranty Association
B. Federal Government
C. The SEC
D. The insurance Department
Answers
All of the following entities regulate variable life policies except. The Guaranty Association
What Does Variable Life Insurance Mean?A variable life insurance policy is a legally binding agreement between you and an insurance company. It is designed to meet specific insurance needs, investment objectives, and tax planning objectives. It is a policy that pays a predetermined sum to your family or others (your beneficiaries) in the event of your death.
It is a type of permanent life insurance policy that allows the cash component to be invested to produce higher returns. VUL insurance policies are structured similarly to traditional universal life insurance policies, but they allow you to invest the cash value in the market through subaccounts.
Variable life insurance is regulated by both the state and federal government, as well as the Insurance Department, and the SEC.
Therefore, it should be noted that it's not regulated by the guaranty association.
In conclusion, the correct option is A.
Learn more about variable life on:
https://brainly.com/question/24984403
#SPJ1
nell sells a passive activity with an adjusted basis of $45,000 for $105,000. suspended losses attributable to this property total $45,000. the total gain and the taxable gain are:
Answers
The total gain from the sale is $60,000 and the taxable gain is $15,000.
When a passive activity is sold, suspended losses are released and can be used to offset any gains from the sale. In this case, the suspended losses of $45,000 will be used to offset the gain from the sale.
To calculate the total gain from the sale, we subtract the adjusted basis from the sale price:
Total gain = Sale price - Adjusted basis
Total gain = $105,000 - $45,000
Total gain = $60,000
To calculate the taxable gain, we need to subtract the amount of suspended losses used to offset the gain from the total gain:
Taxable gain = Total gain - Suspended losses used
Taxable gain = $60,000 - $45,000
Taxable gain = $15,000
To know more about taxable gain here
https://brainly.com/question/13059282
#SPJ4
What is the best way an auditor can detect fraud in the financial statements?A. Use professional skepticism B. Understand GAAS C. Brainstorm with the client to find the types of fraud occurring D. Actively search for errors in the financial statements.
Answers
The best way an auditor can detect fraud in financial statements is to use professional skepticism (Option A).
This approach involves maintaining a questioning mindset, critically assessing audit evidence, and being alert to any potential signs of fraud. Understanding GAAS (B) is also important as it provides a framework for conducting audits, but actively applying professional skepticism plays a more significant role in detecting fraud.
Professional skepticism involves maintaining a questioning mind and being alert to the possibility of fraud. Auditors should also understand GAAS (Generally Accepted Auditing Standards) and follow a systematic process to evaluate the financial statements for potential fraud.
Additionally, auditors should actively search for errors and inconsistencies in the financial statements, and consider brainstorming with the client to identify the types of fraud that may be occurring. Overall, a combination of these methods can help auditors detect and prevent fraudulent activity in financial statements. Hence, A is the correct option.
You can learn more about professional skepticism at: brainly.com/question/28238551
#SPJ11
Jack has become a franchise of sonic and his local community this as enable him to have access to blank in order to sell the product
Answers
Answer:
the knowledge, processes, and trademarks of Sonic
Explanation:
"One should have deep interest in the profession he/she is going to choose." Justify the statement.
Answers
Answer- yadav le sikayena?? no fear when i am here
"One should have a deep interest in the profession he/she is going to choose" yes, the statement is true because each profession is likely to have both positive and negative aspects. One should choose the profession which has more positive aspects than negatives ones.
Explanation:
Mark me as brainlist, don't forget! BUJIRAXA NI TYAa
A willing buyer who seeks a seller exclusively on Craigslist in search of a four-drawer file cabinet for $25 is the offeree, because he is the buyer. False False True True
Answers
The given statement about a willing buyer who makes an offer being the offeree, because he is the buyer is TRUE.
What is a Contract?This refers to the formal agreement that exists between two or more parties about a particular thing, usually backed by law.
Hence, we can see that based on the fact that the willing buyer has searched for a seller on Craigslist and wants to buy a cabinet for $25, then he is the offeree because he is the buyer based on his willingness to buy.
Read more about contracts here:
https://brainly.com/question/14311369
#SPJ1
enlist five institution that provide tecbnical education and vocational
Answers
Answer:
Hope it helps you!
Explanation:
Institute of Forestry.Institute of Engineering.Institute of Science and Technology.Council of Technical Education and Vocational Training.Patan Science Academy.Institute of Agriculture and Animal Sciences.
Here's what I got!
Institute of Forestry.
Institute of Engineering.
Institute of Science and Technology.
Council of Technical Education and Vocational Training.
Patan Science Academy.
The economist Irving Fisher, after whom the Fisher effect is named, explained why interest rates __________ as the expected rate of inflation __________, everything else held constant.
A) rise; increases
B) rise; stabilizes
C) fall; stabilizes
D) fall; increases
Answers
The correct answer is A) rise; increases. The Fisher effect states that interest rates rise as the expected rate of inflation increases, reflecting the compensation needed to preserve the real value of money.
The Fisher effect, named after economist Irving Fisher, explains the relationship between nominal interest rates, expected inflation rates, and real interest rates. According to Fisher, interest rates rise as the expected rate of inflation increases, assuming everything else remains constant.
Fisher's theory is based on the idea that lenders and investors seek compensation for the erosion of purchasing power caused by inflation. When expected inflation increases, lenders anticipate that the future value of money will be worth less. As a result, they demand higher interest rates to offset the expected loss in purchasing power.
Inflation erodes the purchasing power of money over time, meaning that a fixed amount of money will buy fewer goods and services in the future. To maintain the same level of purchasing power, lenders require higher interest rates to compensate for the expected inflation and maintain the real value of their investments.
Therefore, the Fisher effect states that interest rates rise as the expected rate of inflation increases, reflecting the compensation needed to preserve the real value of money.
To know more about Fisher, visit:
brainly.com/question/23114319
#SPJ11
During the economic periods of ____ , the economy is at its highest point and unemployment is low, in addition, total income is high and consumers are willing to buy products and services.
Answers
Answer:
Prosperity.
Explanation:
This can be tagged to be an economic period or stage in fluctuation, contraction and other factors affect the growth of a business or a certain economy. Example can be seen when your business generally follows the same economic cycle as the others does in the economy, then warning signs of an impending recession suggest that it is not a good time for you to broaden or create new growth grounds. This cycle help a business organisation protect against downturns, and position themselves to gain maximum merits of economic expansions.
In order to effectively use price competition as a sustainable competitive advantage, a firm must have _____. Group of answer choices
Answers
Answer:
the lowest cost
Explanation:
the lowest cost
the lowest cost Is correct answer
(Hope this helps can I pls have brainlist (crown)☺️)
A designer reaches the final stage of building value propositions. They review their official value proposition list. Using this list, how can they make sure their product stands out from the competition?
Answers
Identify their product's unique value proposition and remove value proposition that are offered by competitors are the way they can do to make sure their product stands out from the competition.
What is a value propositionThe value proposition is a company's unique selling point that explains to potential customers why they should do business with the organization.
In most cases, a value proposition offers a clear distinction between an organization and its competitors to help customers see why they should work with one company over another.
Companies use value propositions in a number of ways. They are used internally to help various departments in a business align their tasks and goals, and they are used externally as a marketing and advertising tool to help convince customers to make a purchase.
The value proposition itself is very concise and usually only a sentence or two long and can be used for both internal and external content.
What makes a good value propositionA good value proposition can take many forms. Some are complete sentences, while others are a series of short bullet points.
Regardless of format, excellent value propositions tend to have certain characteristics:
Be concise: Ideally, the value proposition is short and concise enough for your customers to remember and remember. Digestible: The main idea of the value proposition should be immediately clear to the reader. Definitive: The value proposition must definitively state the unique value your company offers to customers. Explanation: An excellent value proposition should provide a clear explanation of why your company is better than the competition. Accessible: Customers and internal stakeholders should have easy access to your value proposition, usually via your company's website. Measurable: Some value propositions offer measurable statistics to better demonstrate how much better their product is than their competitorsLearn more about value propositions at https://brainly.com/question/3130122.
#SPJ4
how old do you have to be to work at lululemon
Answers
Answer:
The minium age requirement to work there is 18
If 2010 is the base year, then the inflation rate in 2015 equals a. [(CPI in 2015 - CPI in 2014) / CPI in 2010] x 100 b. [(CPI in 2015 - CPI in 2010) / CPI in 2010] x 100 c. [(CPI in 2015 - CPI in 2014) / CPI in 2014] x 100 d. [(CPI in 2015 - CPI in 2010) / CPI in 2014] x 100
Answers
If 2015 is the base year, the inflation rate is [(CPI in 2015 - CPI in 2010) / CPI in 2010] x 100 .
What is the consumer price index?The consumer price index is a measure of inflation. Inflation is the rise in general price levels in an economy.
CPI = (cost of basket of goods in current period / cost of basket of goods in base period) x 100
Inflation rate = (CPI in current year - CPI in base year) / CPI in base year x 100
To learn more about, consumer price index, please check: https://brainly.com/question/26382640
What are the dangers associated with having a high national debt?
Answers
In addition to showing the path of future debt, CBO's Long-Term Budget Outlook described the consequences of a large and growing federal debt. The four main consequences are: Lower national savings and income. Higher interest payments, leading to large tax hikes and spending cuts.
Answer:
Explanation:
Lower income and economic opportunities for the people. Might lose investors and business opportunities.
Alpha can produce either 18 oranges or 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour. Which of the following statements is true? Alpha should export to Beta, but Beta should not export to Alpha. Since Alpha has an absolute advantage in both goods, no mutual gains from trade are possible. If Alpha specializes in growing oranges and Beta specializes in growing apples, they could both gain by specialization and trade. If Alpha specializes in growing apples and Beta specializes in growing oranges, they could both gain by specialization and trade.
Answers
Answer:
If Alpha specializes in growing apples and Beta specializes in growing oranges, they could both gain by specialization and trade.
Explanation:
A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries. A country should specialise in the production of goods for which it has a comparative advantage
Alpha
Opportunity cost in producing oranges = 9/18 = 0.5 apples
Opportunity cost in producing applies = 18/9 = 2 oranges
Beta
Opportunity cost in producing oranges = 4 / 16 = 0.25
Opportunity cost in producing applies = 16/4 = 4 oranges
Alpha has an opportunity cost in the production of apples while beta has a comparative advantage in the production of oranges
Alpha should specialise in the production of apples
Beta should specialise in the production of oranges
Decreasing annual increase rates immediately halts population growth. True or false
Answers
Decreasing annual increase rates immediately halts population growth.The statement is False.
Decreasing annual increase rates do not immediately halt population growth. Decreasing the annual increase rates means that the rate of population growth is slowing down, but it does not stop the population from growing altogether. Decreasing annual increase rates immediately halts population growth. It simply means that the population is growing at a slower pace compared to previous years. In order to achieve zero population growth, the annual increase rates would need to reach zero, indicating that the population is neither increasing nor decreasing.
To learn more about annual
https://brainly.com/question/28426415
#SPJ11
The income statement is divided into three major categories. What are these categories?
Answers
Answer: revenue, expenses and net
Explanation:
Which is an example of a small business showing social responsibility to individuals within the company?
A. starting an office recycling program
B. developing sustainable business practice
C. donating money to local organizations
D. allowing employees to work from home
Answers
Starting an office recycling program, developing sustainable business practice and donating money to local organizations are examples of a small business showing social responsibility to individuals within the company.
Company have a social responsibility to the communities in which they operate. This includes ensuring that they are good corporate citizens, providing support for local causes and charities, and protecting the environment.
Sustainable business is a term that is often used to describe businesses that are environmentally friendly or that have a positive social impact.
Hence, the correct options are "A, B & C".
To know more about social responsibility, click here.
https://brainly.com/question/24176816
#SPJ1
bruce f. hall, neighborhood difference in retail food stores: income versus race and age of population, 59 econ
Answers
Neighborhood Differences in Retail Food Stores: Income Versus Race and Age of Population is explained below.
In retail food stores, there may be variations in the cost and quality of the goods for sale, the range of goods and sizes available, and the cleanliness of the stores themselves. The effects of socioeconomic characteristics of the neighborhoods where stores are located on a set of store and product attributes are calculated while holding constant variables that affect the costs of the stores.
The main outcome in retail food stores is that consumers in locations with sizable populations of elderly and black citizens experience higher pricing, inferior quality and cleanliness, and less variety in prices, brands, and sizes.
To know more about retailing, click here:-
https://brainly.com/question/13125283
#SPJ4
Enterprise project management softwares are also known as _____ tools of project management software. group of answer choices
Answers
Enterprise project management tools or software are also known as high-end tools of project management software. While the other options such as baseline, midrange, and low-end are incorrect because these are not used at the enterprise level.
Project management tools or software generally classified into three categories are process management software, time accounting software, and project management software. Selecting the desired category of software depends on the organization structure or project complexity. However, larger enterprises use high-end project management software.
An example of high-end project management software is Primavera Project Planner which is also called P3. The high-end project management tools or software include the features of mid-range project management software.
While the other options are incorrect because:
Mid-range Project management software generally has better tracking and output capabilities, and better scheduling functionalities, but it is more costly than low-end tools. The best examples of these tools are Project Scheduler and CA-SuperProject. Low-end project management mostly has scheduling functionality or features but has less robust tracking functionality. Some examples of low-end project management tools or software are MS-Project SureTrak etc. It is less costly than mid-range software. While the baseline is a term that is used as starting point in project management.You can learn more about project management software at
https://brainly.com/question/15848158
#SPJ4