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scoundrel [369]
2 years ago
3

A person borrows $200that he must repay in a lump sum no more than 8 years from now. The interest rate is 8.5% annually compound

ed. The borrower can repay the loan at the end of any earlier year with no prepayment penalty.a.What amount will be due if the borrower repays the loan after 1 year
Business
1 answer:
taurus [48]2 years ago
5 0

Answer:

$217

Explanation:

The option chosen is that repayment of the loan would take place after a year, in other words, after 1 year the borrower would repay the principal plus the interest that has accrued on the loan over the one year period.

1 year interest on loan=principal*interest rate

1 year interest on loan=$200*8.5%

1 year interest on loan=$ 17

total amount due in one year=$200+$17=$217

Alternatively, we can determine the worth of the loan after one year using the future value formula as shown thus:

FV=PV*(1+r)^n

PV=loan amount=$200

r=annual interest rate=8.5%

n=number of years=1

FV=$200*(1+8.5%)^1

FV=$217

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Answer:

You will be able to Buy fewer goods or services

Explanation:

This is because certificate of deposits usually pay lower than the inflation rate.

The certificate of deposit is deposit with banks over a fixed period of time and accruing a specific pre-agreed rate of interest.

Over the life of the Certificate, the amount cannot be withdrawn. Withdrawing any or all of the deposits will result in penalty charges against the depositor.

8 0
2 years ago
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Seth owns a local business that provides email updates on surf conditions. He is the only supplier of these email updates in San
klasskru [66]

Answer:

Seth's total profits is $1,535.359

Explanation:

According to the given data we have the following:

MC = 0 and we will ignore fixed costs

Therefore TC = 0  

Demand function in Santa barbara is

p = 74 - q  

MR = 74 - 2q

Since Seth sets different uniform prices in two markets to maximizes his profit therefore ,

MR = MC  

74 - 2q = 0  

2q = 74

q=37

p = 74 - 37 = 37

Profit = pq - TC

= 37*37 - 0  

= $1,369

Inverse demand finction Goleta is

p = 39 - 4q

MR = 39 - 8q

MR = MC

39 - 8q = 0  

8q = 39

q = 4.875

p = 39 - 4.875 = 34.125

Profit = pq - TC  

= 34.125*4.875 - 0  

= $166.359

Therefore, Seth's total profits =  $1,369 + $166.359

Seth's total profits= $1,535.359

Seth's total profits is $1,535.359

6 0
2 years ago
In terms of the Job Characteristics Model, feedback refers to the extent to which _____.
Bond [772]

Answer:

(E). A person receives clear information about performance effectiveness from the work itself.

Explanation:

According to the Job characteristics model, an employee gets motivation from the job itself, and there are five characteristics that improve an employee's performance on the job. One of these characteristics is "feedback".

The model defines feedback as the <u>extent to which an employee receives information about how effective his or her job performance has been.</u>

8 0
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Which of the following are useful for conducting market research? A. Focus groups B. Cost-benefit analysis C. Budget spreadsheet
rewona [7]
A- Focus Groups. You gotta know how the customers feel
7 0
2 years ago
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Provenzano Corporation manufactures two products: Product B56Z and Product D32N. The company is considering implementing an acti
Yuliya22 [10]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Activity Cost Pool Activity Measure Total Cost Total Activity

Machining Machine-hours $330,000 15,000 MHs

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

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<u>Machinning:</u>

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<u>Machine setups:</u>

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Predetermined manufacturing overhead rate= 50,000/100

Predetermined manufacturing overhead rate= $500 per set-up

6 0
2 years ago
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