Danby Design Inc. has approached the bank with its plan to borrow $12,000. The bank offers the choice of a 12 percent discount interest loan or a 10.19 percent add-on, one-year installment loan, payable in 4 equal quarterly payments. What is the approximate (nominal) rate of interest on the 10.19 percent add-on loan?
A. 5.10%
B. 10.19%
C. 12.00%
D. 20.38%
E. 30.57%
Answer: D
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Central National Bank recently acquired a new computer system. Which of the following costs associated with the computer should not be debited to the Equipment account?
a. Installation of a backup power source required for the computer. b. Replacement of several circuit boards damaged during installation. c. System programmer wages for personnel hired to prepare the system for use. d. Insurance coverage covering the transport period from the manufacturer.
People know that the Fed has the incentive to announce that the inflation rate will be 3 percent next year, so people will build 3 percent inflation into their wage negotiations. But then the Fed has the incentive to increase inflation above 3 percent to make the economy grow faster. This type of phenomenon is known as
A. inflation targeting. B. time inconsistency. C. McCallum's rule. D. an expectations trap.
If a normal loss is anticipated on a specific job, the overhead application rate should include an amount for the cost of defective units less disposal value
Indicate whether the statement is true or false
The Incoterm acronym DDP (destination place) refers to
Fill in the blank(s) with the appropriate word(s).