A finance company offers a "12% plan". The cost of a one-year loan is 12%, and this cost is added to the loan. This total is then divided by 12 to get the monthly payments. Calculate the effective interest rate being charged for a loan of $9,000.


Answer 1




Interest rate=12%

Interest for $9000= 12% × 9000

Interest for $9000= 12/100 × 9000

Interest for $9000 = $1080

Interest + principal loan amount = $9000 + $1080 = $10080

Monthly payment = $10080/12months = $840

Related Questions

A segment of a company with an ROI of 25% has an income of $84,000. The company's required rate of return on segment investments is 18%. The segment's residual income is: A. $14,280 B. $33,600 C. $21,000 D. $23,520



D. $23,520


The cost of investment in the segment shall be determined from the ROI formula in the following mentioned manner:

ROI=Net profit/cost of investment

25%=$84,000/Cost of investment

Cost of investment=$336,000

The residual income of the segment of  any company is determined through following mentioned formula:

Residual income=Net income-(required rate of return*cost of investment)

Residual income=$84,000-(18%*$336,000)


So based on the above calculations, the answer is  D. $23,520

A signal cos(1000t) is sampled for further processing. Due to an error in the sampling frequency, the output of the sampler is cos(100t). Determine the sampling frequency.



The Sampling frequency is 0.1


Sampling frequency = 100/1000 =0.1

Benny the Barber owns a one-chair shop. At barber college, they told Benny that his customers would exhibit a Poisson arrival distribution and that he would provide an exponential service distribution. His market survey data indicate that customers arrive at a rate of 3.0 per hour. It will take Benny an average of 17 minutes to give a haircut. Based on these figures, find the following:a. What is the average number of customers waiting? (Round your answer to 4 decimal places.)b. What is the average time a customer waits? (Round your answer to nearest whole number.)c. What is the average time a customer is in the shop?d. What is the average utilization of Benny's time? (Round your answer to the nearest whole percent.)


The average number of customers that are waiting will be 5 customers.

How to calculate the average number of customers?

The average number of customers waiting will be:

= 3.00² / 3.529(3.529 - 3.0)

= 4.82 customers

= 5 customers

The average time that a customer will wait will be:

= 4.82/3.00

= 1.62 minutes

The average time a customer is in the shop will be:

Ls = λ / μ(μ – λ)

= 3.00/3.529 – 3.000 = 5.671

Therefore, average time will be:

= 5.671/3.00 = 1.890 hours

= 113 minutes

The average utilization of Benny's time will be:

ρ =  λ/μ

= 3.00/3.529

= 85.0%

Learn more about average on:



Below is the solution to the given problem


a. What is the average number of customers waiting?

With one barber and exponential service, this system fits Model 1 in the text. λ = 3.000 per hour (given), μ= 60/17 = 3.529 per hour.

You are looking for Lq here.

Lq = λ / μ(μ – λ) = /3.529 (3.529 – 3.000) =  = 4.82 customers

b. What is the average time a customer waits?

Wq = Lq/λ = 4.82/3.00 = 1.607 hours  = 96.40 minutes  

c. What is the average time a customer is in the shop?

You are looking for Ws here, and need to calculate Ls first.

Ls =    λ / μ(μ – λ) = 3.00/3.529 – 3.000= 5.671

Ws =  Ls/λ = 5.671/3.00 = 1.890 hours  = 113.4 minutes

d. What is the average utilization of Benny's time?

ρ =  λ/μ = 3.00/3.529 = 0.85 = 85.0%

Depreciation on equipment for the year is $6,300. Required: (a) Record the journal entry if the company prepares adjustments once a year on December 31. Refer to the Chart of Accounts for exact wording of account titles.(b) Record the journal entry if the company prepares adjustments on a monthly basis on December 31. Refer to the Chart of Accounts for exact wording of account titles.



(a) Dec 31   Depreciation Expense-Equipment    6300 Dr

                      Accumulated Depreciation-Equipment    6300 Cr

(b) Dec 31  Depreciation Expense-Equipment    525 Dr

                      Accumulated Depreciation-Equipment   525 Cr


(a) The normal entry to record the depreciation expense is always to debit the depreciation expense account for the relevant asset as the expense is increasing and credit the contra asset account of Accumulated depreciation created against that particular asset.

If the adjustments are prepared once a year, that means the depreciation expense has not been recorded and charged for the whole year and it will be charged whenever the adjustments are made. So, on 31 december when the adjustments are made, we will charge the whole year's deprecation on equipment as depreciation expense and credit accumulated depreciation by the same amount ( in this case 6300 for the whole year).

(b) If the adjustments are made on a monthly basis that means that every month the relevant month's depreciation is charged and recorded as an expense. Assuming the depreciation is a straight line basis, we simply charge the December's depreciation on 31 December which is calculated as,

6300 / 12 = 525 / month

An HVAC company is selling heating and cooling equipment. Between its sales staff and the VP of Marketing, the sales staff would want to a. ​Price aggressively to ensure sales are made b. ​Price less aggressively to ensure that profitable sales are made c. ​Price at cost to minimize sales d. ​None of the above


Answer: B. ​Price less aggressively to ensure that profitable sales are made.

Explanation: One of the he main objectives and target of a sales staff is to ensure that pricing is made in such a way that will lead to higher return,higher turn over and higher profits for the company which they represent.


An indifference curve must slope downward towards the right. is positively sloped. may be upsloping or downsloping, depending on whether the two products are complements or substitutes. is upsloping and is concave to the origin.



must slope downward towards the right.


The indifference curve is the curve representing the combination of two products which derives similar satisfaction and the utility which makes the customer distinct.  

The properties of the indifference curves are as follows:

1. It slopes downwards towards the right

2. It never be intersected to each other

3. It is convex to the origin

College tuition has risen significantly in the last few decades. For the sake of this problem, let us assume that over the last 20 years, the cost of college, including total tuition, room, and board, paid by full-time undergraduate students went from $2,871 to $16,789 at public institutions and from $6,330 to $33,716 at private institutions. This is an average annual tuition increase of 6.1% at public institutions and 5.7% at private institutions. Over the same time, average personal income after taxes rose from $9,785 to $39,409 per year, which is an average annual rate of growth of personal income of 4.8%. Have these tuition increases made it more difficult for the average student to afford college tuition? No, because the increased costs were in all likelihood offset by commensurate increases in financial aid. Yes, because the rate of increase at public institutions was greater than at private institutions, and average students are more likely to enroll at public institutions. Yes, because income did not increase as much as tuition at either private or public colleges and universities. No, because average incomes remained above the average costs of attending both private and public institution


Yes, these hikes in tuition fees made it increasingly challenging for the typical student to finance college.

One factor for the rise in college fees is the increased number of students applying for admission.

Higher education is required for a successful career in today's world.

An rise in college prices indicates an increase in college demand.

Due to the lower rise in salaries in contrast to college fees, there is less money available for fee payment. Otherwise, supply will fall short of demand.

Scholarships are simpler to get by for intelligent students, but not so much for ordinary students. As a result, arranging that additional amount to bring supply and demand into balance will be tough.

Learn more:




To know whether the increase in tuition made it more difficult for the average student on affording the college tuition we have to make a comparison of the increase in tuition with the average rise in personal income after taxes.

The average rise for annual in tuition at public institutions of 6.4% is 30% higher rate of rise compared to the average annual rise in personal income [= (6.4% - 4.9%) / 4.9% = 0.30].

The average annual rise in private institutions of 6.5% is 33% higher rate of rise [(6.5% - 4.9%) / 4.9%] = 0.33).

Thus the calculations reveal that for a typical person it has become more difficult to afford college.

Classify each of the following as direct or indirect with respect to traceability to product and as variable or fixed with respect to whether the costs fluctuate in total as volume of production changes over wide ranges. Explain your classifications. 1. The cost of components that are assembled into a final product. 2. The cost of supplies consumed when maintenance is performed on machines. 3. The wages of machine operators who work on only one product. 4. The cost of training mechanics who service processing machinery.



The answers are as follows;

1. Direct; variable

2. Indirect; variable

3. Direct; variable

4. Indirect; variable


Just as stated in the question,

Direct costs are directly associated/traceable to product

Indirect costs do not have direct association to product, but enhance production

Variable costs are costs that change as volume of production change

fixed costs are costs that do not change with changing volume of product.

Not let me explain the choices one after the other

1. The cost of components that are assembled into a final product; because the components are assembled to form the product, they are directly linked to product, hence the cost is direct, and the total number of components will determine the total volume of product, so if a higher number of product is to be produced, then the total number of components to be purchased will increase, which will in turn increase the total cost of purchasing the components, hence the cost is variable, not fixed.

2. The cost of supplies consumed when maintenance is performed on machines; maintenance of machines do not have direct effect on product, but on the machines used in production, hence the cost here is indirect, the need for maintenance will arise more, depending on the frequency at which the machine is used, so the more frequently the machine is used the higher the product volume and the more the need for maintenance, therefore making cost of maintenance variable. This type of variable cost is known as variable overhead cost, because the price per unit of product is the same, but the total price increases as total product volume increase

3. The wages of machine operators who work on only one product; machine operators are directly involved in production, they operate the production tool, hence their wages is a direct, cost, and since the wage is paid on manufacture of only one product, it means that as the product volume increase, from one to two, the operator will be paid twice, hence is a variable cost. This cost would have been fixed if the operators were not paid per product, but paid monthly, so depending on the volume of product, they have a certain monthly salary.

4. The cost of training mechanics who service processing machinery; mechanics who service machinery, have direct effect on machinery not product, hence the cost of training these mechanics is indirect cost, Increase in the volume of product produced, may call for the acquisition of more machines and the need to employ more mechanics, which implies more cost of training, hence it is a variable cost.

Last year Coral Gables Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm's total debt ratio was 60.0%. Based on the DuPont equation, what was the ROE





Given: Sales: $325000

           Net Income: $19000

           Total asset: $250000.

            Total debt ratio= 60%

Remember; Dupoint equation´s ROE=

Now let´s find out total liability.

We know, Total liability=

⇒  Total liability=  

∴ Total liability= $150000.

Now, finding return on asset.

We know, return on asset=

⇒  return on asset=

∴ return on asset (ROA)= 0.076

Next finding equity multilier.

Shareholder´s equity=

⇒ Shareholder´s equity=

∴  Shareholder´s equity= $100000.

Equity multipier=

⇒ Equity multipier=  

∴ Equity multipier=  2.5

Finally, based on the DuPont equation. Finding return on equity (ROE).


⇒ ROE=

∴  ROE=

Return on equity ratio is calculated to know how much profit a company can make out of investor´s money. Dupoint analysis is the method to analyze company´s ability to increase it´s ROE.

Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply. The value produced by doing your own laundry Funds spent by city governments to renovate their buildings The costs of overfishing and other overly intensive uses of resources The leisure time enjoyed by households



The value produced by doing your own laundry

The costs of overfishing and other overly intensive uses of resources

The leisure time enjoyed by households


Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP calculated using the income approach sums up all the income earned by factors of production.

GDP calculated using the expenditure approach = Consumption spending + Investment spending + Government Spending + Net Export

Government spending on building is measured in the calculation of GDP as part of government spending.

Services rendered to ones self is not included in the calculation of GDP. So, the value produced by doing your own laundry is not included in GDP.

The effects of externality and pollution aren't included in the calculation luation of GDP. So, the costs of overfishing and other overly intensive uses of resources.

Enjoyment isn't added in the calculation of GDP.

Other items and activties not included in the calculation of GDP include:

A. Illegal activities

B. Transfer payment by government

C. Intermediate goods

I hope my answer helps you

Improvements at a Harley-Davidson Plant are estimated to be $7.8 million. Construction is expected to take three years. What is the future worth of the project in year 3 at an interest rate of 6% per year compounded quarterly, assuming the funds are allocated (a) completely at time 0, and (b) equally at the end of each year?



A) -9,289,924.80

B) -8,268,360‬.00


To solve for the first part, we have to solve for the futue value of a lump sum

Principal 7,800,000.00

time 3.00

rate 0.06000

Amount 9,289,924.80

As this is future worth, te value will be negative.

Then, we solve for thre payment equally at the end of each year:

7,800,000 / 3 = 2,600,000

       1st      2nd   3rd


The first capitalize for 2 period

the second for one period and te third for none.

Amount 2,921,360.00

Amount 2,756,000.00

Third year 2,600,000

Total worth = 8,268,360‬

Kiddy Toy Corporation needs to acquire the use of a machine to be used in its manufacturing process. The machine needed is manufactured by Lollie Corp. The machine can be used for 10 years and then sold for $10,000 at the end of its useful life. Lollie has presented Kiddy with the following options:1. Buy machine. The machine could be purchased for $160,000 in cash. All insurance costs, which approximate $5,000 per year, would be paid by Kiddy2. Lease machine. The machine could be leased for a 10-year period for an annual lease payment of $25,000 with the first payment due immediately. All insurance costs will be paid for by the Lollie Corp. and the machine will revert back to Lollie at the end of the 10-year period.Required:Assuming that a 12% interest rate properly reflects the time value of money in this situation and that all maintenance and insurance costs are paid at the end of each year, determine which option Kiddy should choose. Ignore income tax considerations.



The lease would be a better option as their net preset worth is lower than purcahse the machine and carry their cost.


Option A purchase

F0 -160,000

operating cost 5000 per year we solve for the present value of an annuity

C 5,000.00

time 10

rate 0.12

PV -$28,251.1151

PV of the salvage value


Maturity  $10,000.0000

time  10.00

rate  0.12000


PV   3,219.7324

present worth

-160,000 - 28,251.11 + 3,219.73 = -185.031,38

Option B Lease

10 payment beginning immediatly of $25,000

Therefore, it is an annuity-due

C 25,000.00

time 10

rate 0.12

PV -$158,206.2448

Last month, when 10,000 units of a product were manufactured, the cost per unit was $60. At this level of activity, variable costs are 50% of total unit costs. If 10,500 units are manufactured next month and cost behavior patterns remain unchanged the:



Total cost per unit will decrease.



Variable cost is 0.5 of the total cost

Given that total cost=fc+vc

Find FC since VC is given

Therefore :

1st month cost behavior

$60*0.5 = $30

$300,000/10,000 = $30 (fixed)

2nd month cost behavior

$300,000/10,500 = $28.57(fixed)

Add the different months together

Then have

30+28.57 = 58.57 < 60

Now, the payoff: How productive is the average person in the top 20% compared with the average person in the bottom 80% of the planet? Answer this by dividing your answer to question 3c by your answer to question 4b. This chapter and the next are devoted to explaining why this ratio is so large.



The productivity of an average person in the top twenty percent is four (4) times that of an average person in the bottom eighty percent.


In questions 3c and 4b, the values of the gross domestic products for the top twenty (20) percent and the bottom eighty (80) percent are $22,800 and $5,700 respectively. Therefore, if we take the ratio of the two values, we have:

$22800/$5700 = 4

The productivity of an average person in the top twenty percent is four (4) times that of an average person in the bottom eighty percent.

How many units would have to be sold to yield a target operating income of​ $26,000, assuming variable costs are​ $27 per​ unit, total fixed costs are​ $2,000, and the unit selling price is​ $32?



The number of units must be sold to yield a target operating income of​ $26,000: 5,600 units


Contribution margin per unit = Sales price – Variable cost per unit = $32-$27=$5

The number of units must be sold to meet the target income figure are calculated by using following formula:

The number of units must be sold = (Total fixed cost + Targeted income) / Contribution margin per unit = ($2,000 + $26,000)/$5 = 5,600 units

Identify the consequences of having dissatisfied employees and describe ways of applying the four theories of job satisfaction and how you would use them to boost job satisfaction. Discuss how intrinsic and extrinsic motivation factors affect job satisfaction. When answering consider how goals may help with job satisfaction and how to design jobs to enhance motivation.



Dissatisfied workers lead to lack of motivation, poor attitude and lack of productivity.


The consequences of having dissatisfied workers include to job stress, lack of motivation, poor attitude, lack of productivity and increase in employee  turnover rates.

Job satisfaction theories aims to identify factors influencing job satisfaction and how employee job satisfaction can be increased. Job satisfaction theories are Maslow’s Needs Hierarchy Theory, Herzberg’s Motivator-Hygiene Theory, Job Characteristics Model and Dispositional Approach. Job satisfaction theories are essential because it helps in knowing what motivates workers and how productivity can be increased at the workplace.

Extrinsic motivation are external sources of motivation such as title, financial rewards, power, fame and status while Intrinsic motivation are internal motivation sources such as learning and growth, service and duty, achievement of goals etc. Intrinsic and extrinsic motivation are essential in motivating employees in order for them to achieve organizational goals, be creative and have a good attitude towards their job.

How might the telemarketer’s job be redesigned so that employees are more satisfied and challenged by their work? Is telemarketing a job that can be enriched and remain highly productive, or is it more like an assembly line?


Answer:PART A

(1) Adopt other technological driven marketing techniques including the social media.

(2) Flexible work schedule

(3) Job rotation

(4) participation in decision making as it regards to their work.


Yes,telemarketing job can be enriched and become more productive.

Through assigning higher and attractive responsibilities

Through extra earnings for effective contributions etc

Explanation: Telemarketing job is a marketing or sales representation job done through the telephone communications or through web conferencing system.

Telemarketers help to act as call center personnel, Customer relationship officers etc.

The following ways are ways of making the job more satisfying and challenging

(1) Adopt other technological driven marketing techniques like inculcation of the social media

(2) job flexibility which allows them to work with some levels of freedom

(3) Job rotation which ensures that they are engaged in other roles from time to time.

(4) Allowing them to be part of the decision makers in relationship to the work they do.

Telemarketing job can be enriched, by giving the telemarketers higher responsibilities that will improve on their capabilities and earnings etc.

Ensuring that they can make extra earnings through effective contributions.

On October 31, 2018, the bank statement shows that your company has $14,656.73 in its checking account. You are aware of three outstanding checks that total of $4,662.19. During October, 2018, the bank rejected two deposited checks from customers totaling $ 1,079.19 because of insufficient funds and charged you $46.00 in service fees. You had not yet received notice about the bad checks, but you were aware of and have recorded the $46.00 of service fees. Prior to adjustment on October 31, 2018, your Cash account would have a balance of: (Round your answer to 2 decimal places.)



The options are missing for what shall be cash account balance prior to 31 October 2015

a) $11,023.73

b) $ 20,898.11

C) $ 18,639.73

d) $   8,961.35

The Answer is D ) $ 8,961.5


Bank Statement Balance             $ 14,656.73

Add: Fees Reversed                              $46

Less: Outstanding Checks         ($4,662.19)

Less: Checks rejected-customers ($ 1,079.19)

Balance as per cash book                  $8,961.35

1.Fees was already recorded in cash book therefore added back

2.Outstanding checks were recorded in cash book but not in bank statement therefore reversed from bank balance

3. Insufficient checks also reversed as they are already deducted from cash book

On October 31, 2019, Simeon Builders borrowed $1,200,000 cash from Star Finance Co. by issuing a $1,250,000, 6-month, non-interest-bearing note. Simeon Builders' effective annual interest rate on this loan is:





To find the effective annual interest rate, we must first find the total amount of interest paid, and this amount is equal to the repaid amount minus the borrowed amount:

Interest paid = $1,250,000 - $1,200,000

                     = $50,000

To find the interest rate, we divided the interest paid by the borrowed amount:

Interest rate = $50,000 / $1,200,000

                    = 0.042

                    = 4.2%

Finally, we multiply this number by 2 to obtain the effective annual interest rate:

Effective Annual Interest Rate = 4.2% x 2

                                                  = 8.4%

MC increases becausea. MC naturally increases as the firm nears capacity. b. labor is paid overtime wages when volume increases. c. in the short run, MC always increases. d. the law of diminishing returns takes effect.



The correct answer is letter "D": the law of diminishing returns takes effect.


The Law of Diminishing Marginal Returns states that as the number of a given factor increases in production it causes smaller increases in the output's costs. When it comes to Marginal Costs (MC), it represents the additional costs of adding one more unit of production. In the beginning, it implies increasing output but it rises at a diminishing rate until the costs become minimum.

Thus, the MC increases can be explained using the law of diminishing marginal returns.

Other Questions
A pair of Renaissance writers who based works on their professional experiences were A. Miguel de Cervantes and Baldassare Castiglione. B. Miguel de Cervantes and Niccolo Machiavelli. C. Niccolo Machiavelli and Dante Alighieri. D. Niccolo Machiavelli and Baldassare Castiglione. A person assembling a tool one week after reading the instructions can remember the first and last steps of the procedure but not the middle ones. This best illustrates which of the following? A force of 18 lb is required to hold a spring stretched 8 in. beyond its natural length. How much work W is done in stretching it from its natural length to 14 in. beyond its natural length? A pediatrician wishes to study how the average weight Y (in kilograms) of children changes during the first year of life. He plots these averages versus the age X (in months) and decides to fit a least-squares regression line to the data with X as the explanatory variable and Y as the response variable. He computes the following quantities: r = correlation between X and Y= 0.84 x = mean of the values of X = 5.69 y = mean of the values of Y = 6.26 S_x = standard deviation of the values of X = 3.23 s_y = standard deviation of the values of Y = 2.04 The slope of the least-squares line is: A) 0.53.B) 0.64. C) 0.84. D) 2.04. A family has j children with probability pj , where p1 = .1, p2 = .25, p3 = .35, p4 = .3. A child from this family is randomly chosen. Given that the child is the eldest child in the family, find the conditional probability that the family has Meghan also wants to walk to get some exercise, rather than going to the gym. She decides to walk along arc AB. How far will she walk? Round to 3 decimal places. A dog can hear sounds in the range from 15 to 50,000 Hz. What wavelength corresponds to the lower cut-off point of the sounds at 20◦C where the sound speed is 344 m/s? A flask is filled with 6.0 atm of N2 and 6.0 atm of H2. The gases react and NH3 is formed. What is the pressure in the flask after the reaction occurs as completely as possible A fiberglass composite is composed of a matrix of vinyl ester and reinforcing fibers of E-glass. The volume fraction of E-glass is 31%. The remainder is vinyl ester. The density of the vinyl ester is 0.79 g/cm3, and its modulus of elasticity is 4.04 GPa. The density of E-glass is 3.011 g/cm3, and its modulus of elasticity is 80 GPa. A section of composite 1.00 cm by 25.00 cm by 200.00 cm is fabricated with the E-glass fibers running longitudinal along the 200 cm direction. Assume there are no voids in the composite. Determine the modulus of elasticity of the composite in GPa. A force pointing in the xx-direction is given by F=ax3/2F=ax3/2, where aa is a constant. The force does 2.01 kJkJ of work on an object as the object moves from xx = 0 to xxx = 15.2 mm. Find the constant aa. Edward bikes the same route to and from school each day. After 28 school says, he bikes a total distance of 389.2 miles. How many miles does he bike each day Sofia does not like eating vegetables. To ensure that she eats vegetables, her mother offers her an extra helping of dessert every time Sofia finishes her vegetables. In the context of behaviorism, this is known as____ A. reinforcement B. conclusion C. training D. hypothesis Bradley has 64 1-inch cubic blocks.He uses all the blocks to build a rectangular prism that is 2 inches high and 2 inches wide.How long is the rectangular prism? 2. A large fruit-eating bat called the black flying fox, Pteropus alecto, occupies a large mangrove swamp on Indooroopilly Island. Assume that 80% of these bats are infected with an ectoparasitic mite and 30% have larger tick parasites. Twenty percent are infected with both. a. Find the probability that a randomly chosen bat will have some parasites (mites or ticks). b. If a randomly chosen bat has mites, what is the probability that it will not have ticks? c. Are the presence of the two types of ectoparasites independent of each other? 6) Which organizational method does the author use to write sentences 1- 9? cause and effect order of importance chronological order compare and contrast Outlining shows how​ ___________ and details relate to each other. During the Yalta Conference, the Allied forces made decisions about: O A. the strategy for invading Nazi territory. O B. how best to defeat the Soviet Union. O c. conditions in Europe after the war O D. whether to use atomic weapons. Andrea picked 212121 pounds of peaches in her orchard. She divided the peaches evenly between 444 large baskets. How many ounces of peaches did Andrea put in each basket? Hermano es alto, pero tú eres bajo 3. When parallel parking, always park on , unless it is a one-way street. A. the right side of the roadway B. the left side of the roadway C. facing downhill D. facing uphill