Aloan of $1,000 is being repaid by equal annual installments over a 20 year period. if the total principal repaid during the first 10 years is $400, find the effective annual interest rate.

Rate = 2.5%

Explanation:

Simple interest I = Principal (P) × Rate (R) × Time (T) / 100

Since these are equal installments half of the loan will be repaid in the first ten years. Half on one thousand is $500. We have amount= principal + interest

500= 400 + I

I= 500-400= $100

Simple interest I = Principal (P) × Rate (R) × Time (T) / 100

100= 400 × 10 × R/100

100= 40 R

R= 100/40= 2.5%

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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