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Vilka [71]
2 years ago
4

Mary, a college student, needs to borrow $8,000 today for her tuition. She agrees to pay back the loan in a lump-sum payment upo

n graduating, 4 years from today. The lender agrees to lending at a fixed 3.85% interest rate during the loan period. What is the total cost of Mary's student loan?
Business
1 answer:
Zanzabum2 years ago
4 0

Answer:

$ 9,304.99

Explanation:

The applicable formula is

A = P x (1 + r)^n

where A is the amount after 4 years

P is principal amount $8000

r is interest rate = 3.85% or 0.0385

n = number of periods: 4

A = $8000 x ( 1 + 0.0385) ^4

A = $8000 x (1.0385)^4

A = $8000 x 1.163123

A =$9,304.99

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A house in the neighborhood has been well maintained. The seller has made sure that all the electrical systems are working to co
Greeley [361]

Answer:

utility power

Explanation:

In simple words, the location of the house has been said to be in a prominent region, it gives the house a competitive advantage over other units, also the house has been maintained and restructured bu the seller so that it looks more good and healthy.

The subject unit has been restructured in a way that it satisfied all the needs of the buyer, thus, it brings a lot of utility power to the market in respect of its value.

6 0
2 years ago
In the London market, Rolls-Royce stock closed at £0.875 per share. On the same day, the British Pound sterling to the U.S. doll
frutty [35]

Answer:

B. $1.12

Explanation:

The computation of arbitrage trading profit is shown below:-

Euro Share price = £0.875

Spot rate R = £0.6366/$1.00

1 ADR Share price in US = $5.75

1 ADR = 5 share of shares

Now, The actual price of 1 ADR P1 = 5 × Euro Share price ÷  Share price in US

= 5 × £0.875 ÷ £0.6366

= $6.87

Therefore, The  Arbitrage profit = Actual price - trading price

= Actual price - Price in US

= $6.87 - $5.75

= $1.12

Therefore for computing the arbitrage trading profit we simply applied the above formula.

5 0
2 years ago
Consider a hypothetical closed economy in which households spend $0.70 of each additional dollar they earn and save the remainin
Gekata [30.6K]

Answer:

$0.70 and 3.3

Explanation:

Data provided in the question

Household spending for each additional dollar = $0.70

And, the remaining amount = $0.30

So in the given case,

The marginal propensity to consume (MPC) = household spending for each additional dollar i.e $0.70

And, the Spending multiplier is

= 1 ÷ 1 - MPC

= 1 ÷ 1 - $0.70

= 1 ÷ $0.30

= 3.3

5 0
2 years ago
Mullen Company purchased a new machine costing $55,200 on January 1, 2017. The machine is expected to have a $3,600 salvage valu
viva [34]
A. 8,600 is the answer
8 0
2 years ago
Read 2 more answers
Contractionary fiscal policy to prevent real gdp from rising above potential real gdp would cause the inflation rate to be _____
vekshin1

Answer:

Contractionary fiscal policy to prevent real gdp from rising above potential real gdp would cause the inflation rate to be <u>LOWER</u> and real gdp to be <u>LOWER</u>.

Explanation:

A government engages in contractionary fiscal policy when it decreases spending or increases taxes. This is done to lower the economy's inflation rate, but it also decreases aggregate income which will decrease aggregate supply, resulting in a lower real gross domestic product.

6 0
2 years ago
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