Jayne Company presently pays its employees at the end of each week. The weekly payroll totals $500,000. If Jayne Company were to extend the pay period so as to pay its employees 1 week later throughout an entire year, the employees would in effect be "lending" the firm how much for the year?
And
if Jayne company gets a discount loan at a 12 percent interest rate. They borrow $100,000 for one year. What is the effective interest rate?
Since you have asked multiple questions, we will solve only one( i will be solving the 2nd question since the first one looks incomplete) question for you. If you want any specific question to be solved then please specify the question number or post only that question.
The effective rate of interest depends upon the amount received and the amount to be repaid at maturity. In a discount loan, the borrower gets a net amount after deducting the discount from the nominal amount.
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