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nexus9112 [7]
2 years ago
5

ABC International can borrow $4,000,000 at LIBOR plus a lending margin of 0.65 percent per annum on a three-month rollover basis

from Barclays in London. Three month LIBOR is currently 5.5 percent. Suppose that over the second three-month interval LIBOR falls to 5.0 percent. How much will ABC pay in interest to Barclays over the six-month period for the Eurodollar loan?
A. $50,000B. $100,000C. $118,000D. $120,000
Business
1 answer:
Anastaziya [24]2 years ago
4 0

Answer:

C) $118,000

Explanation:

ABC International will have to pay the following interests:

  • for the first three month period:

$4,000,000 x (5.5% + 0.65%) x 1/4 = $61,500

  • for the second three month period:

$4,000,000 x (5% + 0.65%) x 1/4 = $56,500

total interest for the 6 month period = $61,500 + $56,500 = $118,000

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Answer:

The correct answer is letter "D": The customer service center.

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Answer: $207.45

Explanation:

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2 years ago
if Jane attends graduate school, it will take her two years, during which time she will earn no income. She will pay a total of
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Answer:

she could earn a total of $71,000 instead of attending graduate school.

Explanation:

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Jane's accounting costs = $100,000 in tuition + $20,000 room and board + $2,000 books

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$175,000 = $122,000 + unearned wages - $18,000

$175,000 = $104,000 + unearned wages

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2 years ago
What is the main purpose of DTP software? to arrange elements on a page in a way that makes communication more effective to crea
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Lisa is choosing between three alternatives: a) working at her job that pays 60 dollars; b) writing a term paper which she value
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Answer:

c. 80 dollars.

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Opportunity cost represents the next best alternative missed.  It is the forfeited benefits arising from choosing one option over the others. Opportunity cost is expressed as a value or the worth of the forgone alternative.

Lisa's opportunity cost is $ 80.  She has valued going out with her friend at $ 80, which is the highest value amongst her three choices. Since she can not engage in all the three activities at the same time, the next best alternative to writing her exam is the opportunity cost.

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2 years ago
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