Betty runs a cookie shop where she sells cookies for $1 each. She employs five people, each of whom worked a total of 500 hours last year; she paid them $10 per hour. Her costs of equipment and raw materials add up to $75,000. Her business ability is legendary, and other companies have offered to pay Betty $100,000 to come to work for them. She also knows she could sell her cookie shop for $150,000. The bank in town pays an annual interest rate of 3% on all funds deposited with it. Betty is trying to decide at what point she should stop selling cookies, and she knows she cannot change the price of a cookie. She should stop selling cookies if:

her implicit costs are greater than her accounting profits. More test answers on https://studyhippo.com/chapter-9-hw/

Answer the question on the basis of the following information for a bond having no expiration date: bond price = $1,000; bond fixed annual interest payment = $100; bond annual interest rate = 10 percent. Refer to the given information. If the price of this bond falls by $200, the interest rate will:

rise by 2.5 percentage points. More test answers on https://studyhippo.com/14-16-18-20-2/

interest on savings is calculated by multiplying the money amount times the opportunity cost times the annual interest rate

False More test answers on https://studyhippo.com/finance-test-1/

You wish to borrow $2,000 to be repaid in 12 monthly installments of $189.12. The annual interest rate is: A) 24%. B) 8%. C) 18%. D) 12%.

A) 24%. More test answers on https://studyhippo.com/finance-test-2-chapter-6/

Implied annual interest rate formula

[365 days / (credit period – discount period)] x cash discount rate. Example: 2/10,n/30 (2% discount if paid within 10 days) [365 days / (30 days – 10 days)] x 2% discount rate = 36.5% More test answers on https://studyhippo.com/act-300-module-3-chapter-5-notes/

Betty runs a cookie shop where she sells cookies for $1 each. She employs five people, each of whom worked a total of 500 hours last year; she paid them $10 per hour. Her costs of equipment and raw materials add up to $75,000. Her business ability is legendary, and other companies have offered to pay Betty $100,000 to come to work for them. She also knows she could sell her cookie shop for $150,000. The bank in town pays an annual interest rate of 3% on all funds deposited with it. Betty’s implicit and explicit costs are equal to:

204,5 More test answers on https://studyhippo.com/chapter-9-hw/

Answer the question on the basis of the following information for a bond having no expiration date: bond price = $1,000; bond fixed annual interest payment = $100; bond annual interest rate = 10 percent. Refer to the given information. If the price of this bond increases to $1,250, the interest rate will:

fall to 8 percent. More test answers on https://studyhippo.com/14-16-18-20-2/

Answer the next question on the basis of the following information for a bond having no expiration date: bond price = $1000; bond fixed annual interest payment = $100; bond annual interest rate = 10 percent. Refer to the above information. If the price of this bond increases to $1250, the interest rate will:

B) fall to 8 percent More test answers on https://studyhippo.com/econ-final/

A machine has an initial cost of $18,000 and operating costs of $2500 each year. The salvage value decreases y $3000 each year. The machine is now three years old. Assuming an effective annual interest rate of 12%, the cost of owning and operating the machine for one more year is most nearly?

NCEES. N/A. **memorize! EQN. Costs = C = operating cost + lost salvage value + opportunity cost. SOLN. C = operating cost annually + decrease salvage value annually + interest ( yr * decrease salvage value annually) $6600. More test answers on https://studyhippo.com/13-engineering-economics-problems/

A commercial bank will loan you $7,500 for two years to buy a car. The loan must be repaid in 24 equal monthly payments. The annual interest rate on the loan is 12% of the unpaid balance. What is the amount of the monthly payments? A) $282.43 B) $390.52 C) $369.82 D) $353.05

D) $353.05 More test answers on https://studyhippo.com/finance-test-2-chapter-6/

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Annual Interest Rate Flashcards, test questions and answers

Discover flashcards, test exam answers, and assignments to help you learn more about Annual Interest Rate and other subjects. Don’t miss the chance to use them for more effective college education. Use our database of questions and answers on Annual Interest Rate and get quick solutions for your test.

What is Annual Interest Rate?

Annual Interest Rate, also known as the annual percentage rate (APR), is the rate of interest charged on borrowed money over a period of one year. It is expressed as a percentage and used to calculate the costs associated with borrowing money. It can be used to compare different types of loans, such as credit cards, mortgages, auto loans and personal loans, by taking into account both interest rate and any additional fees or charges associated with the loan. The APR represents the total cost of borrowing money for one year, including all fees and interest charges. This makes it easier for consumers to understand and compare different loan products. For example, if two loan products have equivalent monthly payments but one has an APR that is two points higher than another’s then it is more expensive overall due to the higher amount of interest paid out over time. When comparing different loan products it is important to consider not only the APR but also other factors such as repayment terms, whether there are pre-payment penalties or late payment fees attached to them and other features that may affect the cost of borrowing over time. Additionally some lenders may offer promotional rates or discounts for certain customers which could impact overall costs so be sure to check before signing up for any loan product. Overall understanding how annual interest rates work can help you make an informed decision when selecting a new loan product. Knowing what type of loan best meets your needs will help you save money in the long run by ensuring that you pick a product with affordable payments that fits within your budget while still meeting your financial goals.