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2 years ago

6

You need some money today and the only friend you have that has any is your ‘miserly' friend. He agrees to loan you the money yo

u need, if you make payments of $20 a month for the next six months. In keeping with his reputation, he requires that the first payment be paid today. He also charges you 1.5% interest per month.
How much total interest does he expect to earn?

A.) $3.94

B.) $4.35

C.) $3.63

D.) $5.96

1 answer:

Bingel [31]2 years ago

8 0

Answer:

B. The total interest = $4.35

Explanation:

The first question to answer, is what is the present value of the annuity of the loan and then based on that the total interest can be calculated.

<h2>Present value of annuity= A x [(1-(1+r)-n)/r]*(1+r) </h2>

Where the A represents Annuity = or $20

The r represents the rate or 1.5%

and the n represents the number of periods which is 6 months

Calculating the value =

= 20 x [(1-1.015^-6)/0.015]*1.015

= 20 x [(1-0.91454219251)/0.015]*1.015

= 20*5.782644973

=$115.65

Now that the loan amount is known, the Total Interest can be calculated as follows

Total Interest= number of payments x monthly payments) - the loan amount (calculated above)

= 20 x 6 -115.65

= 120-115.65

The total interest = $4.35

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zhannawk [14.2K]

Given the table below describing the total and marginal benefit Elvis gets from fried peanut butter and banana sandwiches.

$\begin{tabular}
{|p {3.5cm}|p {2.0cm}|p {2.6cm}|}
\multicolumn {3} {|c|} {Elvis' Fried Peanut Butter and Banana Sandwich Benefit}\\[2ex]
Fried PBB Sandwiches&Total Benefit (dollars)&Marginal Benefit (dollars)\\[1ex]
1&&42\\
2&&24\\
3&75&\\ 
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5&&-3
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<span>The marginal benefit of the 4th fried peanut butter and banana sandwich is given by $81 - $75 = $6.</span>

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2 years ago

After reading the article, select the statements that are correct. Choose one or more: A. The cost-of-living adjustment for 2020

Mama L [17]

Answer:

B. The former program trustee argues that the current inflation measure overcompensates seniors since it ignores the substitution effect.

C. According to advocates for seniors, the 2020 COLA is not enough to compensate for rising healthcare costs.

D. Elizabeth Warren has proposed using a new inflation measure that outpaces the current one used.

Explanation:

The article is, ''<em>Social Security checks to rise modestly amid push to expand benefits '' </em>by<em> Associated Press. </em>

Blahous is a former program trustee who believes that the current inflation adjustment rate at which Social security is increasing is overcompensating seniors because it does not take into account that seniors could be switching to buying cheaper products which is the Substitution effect.

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Elizabeth Warren and Bernie Sanders both proposed using a new measure for inflation that will adequately compensate the seniors because it outpaces the current one used.

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2 years ago

LKM, Inc. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 6.5 percent coupon

pychu [463]

Answer:

6.75%

Explanation:

Price of bonds is equal to their par value when coupon rates match with yields to maturity. The 20-year bond with semiannual coupon payments is going to have 40 coupons payment plus 1 par value payment. Let formulate the price of this bond as below:

Bond price = [Par value x (Coupon rate/2)]/[1 + (YTM/2)] + [Par value x (Coupon rate/2)]/[1 + (YTM/2)]^2 + ...+ [Par value x (Coupon rate/2) + Par value]/[1 + (YTM/2)]^40, or:

972.78 = [1,000 x (6.5%/2)]/[1 + (YTM/2)] + [1,000 x (6.5%/2)]/[1 + (YTM/2)]^2 + ...+ [1,000 x (6.5%/2) + 1,000]/[1 + (YTM/2)]^40

Solve the equation we get YTM = 6.75%.

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2 years ago

Ksivusya [100]

3)

Jorge Rodrigues annual salary is:

$S=\$48,000$

We know that 1 year consists of 12 months, so the gross wage per month can be obtained by dividing the annual salary by 12:

$\frac{S}{m}=\frac{48,000}{12}=\$4,000$

1 year also contains 52 weeks, so the gross wage per week is obtained by dividing the annual salary by 52:

$\frac{S}{w}=\frac{48,000}{52}=\$923$

Finally, 1 year contains 26 bi-week periods, so the gross wage per bi-week period is:

$\frac{S}{b}=\frac{48,000}{26}=\$1846$

4)

In this part, we know that Lexi's salary per month is:

$s=\$1600$

We know that 1 year consists of 12 months: therefore, the annual salary contains 12 monthly salary, so we can write

$S=ns$

where

n = 12 is the number of months

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Substituting s, we find:

$S=(12)(1600)=\$19,200$

5)

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$s=\$2200$

So her annual salary is the monthly salary multiplied by 12:

$S=ns=(12)(2200)=\$26,400$

Then Ryo has been offered a raise of $250 per month, so her new salary per month will be

$s'=2200+250=\$2450$

Therefore, her new annual salary will be

$S'=ns'=(12)(2450)=\$29,400$

So, the amount that Ryo will earn more per year is:

$\Delta S=S'-S=29,400-26400=\$3000$

6)

Being paid salary means that we are paid with a fixed regular payment, usually paid every month.

Being paid by hourly rate instead means that we are paid a fixed amount for every hour of work: therefore, the total monthly salary will depend on the number of hours of work.

Therefore, the main advantages/disadvantages are the following:

- Advantage of being paid salary: the payment is fixed, therefore it is independent on the number of hours worked - so even if one month we work less hours, we still receive the same pay

- Disadvantages: the salary is fixed and cannot be increased by working more - in fact, in the hourly payment, by working more hours it is possible to earn more.

7)

In this problem, the amount of the check in the restaurant is

$c=\$340$

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Therefore, we can write the amount of the tip left as

$t=\frac{20}{100}c$

Simplifying, we get

$t=\frac{1}{5}c$

And by substituting c = 340, we find the tip left:

$t=\frac{1}{5}(340)=\$68$

8)

In this problem, Sandra is paid per day.

Her pay per day is

$d=\$95$

Which means that she is paid 95 dollars per day.

In this month, Sandra has worked for

n = 22 days

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$T=nd$

and substituting n = 22 and d = 95, we find:

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n = 24 + 28 + 30 + 31 + 27 = 140

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10)

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It is:

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7 0

2 years ago

We learn in reading 3 that the best way to control silos in an organization is to make sure the span of control is narrower than

Anton [14]

Answer:

THE ANSWER IS TRUE

Explanation

What is Span control?

Span control can be referred to as the number of subordinates under the managers direct control, and as an example,a manager with six direct reports has a span of control of six.

The commonly accepted definition of span of control is as follows: “the number of subordinates directly reporting to a leader/manager.

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