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Liula [17]
1 year ago
15

Ian loaned his friend $30,000 to start a new business. He considers this loan to be an investment, and therefore requires his fr

iend to pay him an interest rate of 8% on the loan. He also expects his friend to pay back the loan over the next four years by making annual payments at the end of each year. Ian texted and asked that you help him calculate the annual payments that he should expect to receive so that he can recover his initial investment and earn the agreed-upon 8% on his investment.
Business
1 answer:
nignag [31]1 year ago
8 0

Answer:

C = 9057.624134

Explanation:

This will be done by calculate the quota of French Loan System, because the cuota must be the same for the four years.

C = V* \frac{(1+r)^{time} * r}{(1+r)^{time} - 1}

Where:

V = the principal of the loan

C= quota

C = 30,000* \frac{(1+0.08)^{4} * 0.08}{(1+0.08)^{4} - 1}

C = 9057.624134

C = $9057.62

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Isabella needs to create a mini-presentation with her group for an advertising campaign project in her marketing class. What typ
Eva8 [605]

Answer: Social learning

Explanation:

Isabella is involved in social learning with her learning group, in preparation for her mini-presentation on an advertisement campaign.

Social learning involves a form of learning done in groups where ideas are exchanged and learning is enhanced.

5 0
2 years ago
On January 1, 2017, Dagwood Company purchased at par 6% bonds having a maturity value of $300,000. They are dated January 1, 201
statuscvo [17]

Answer:

Dagwood bonds receivables   300,000 debit

                             Cash                              300,000 credit

--to record purchase of bonds--

Interest receivables                     18,000 debit

           Interest revenue                               18,000 credit

--to record accrued interest on dagwood bonds--

Cash                                              18,000 debit

         Interest receivables                            18,000 credit

--to record collection of interest--

Explanation:

as the bonds are purchased at par we pay for the same as the face value

interest for the year

principal x rate

300,000 x 6% = 18,000

at December 31th the interest are receivables as we didn't collect the cash yet

Then, on january first, we receive the cash and write-off the receivables

4 0
2 years ago
If your risk-aversion coefficient is A = 4.4 and you believe that the entire 1926–2015 period is representative of future expect
tamaranim1 [39]

Answer:

=> fraction of the portfolio that should be allocated to T-bills = 0.4482 = 44.82%.

=> fraction to equity = 0.5518 = 55.18%.

Explanation:

So, in this question or problem we are given the following parameters or data or information which are; that the utility function is U = E(r) – 0.5 × Aσ2 and the risk-aversion coefficient is A = 4.4.

The fraction of the portfolio that should be allocated to T-bills and its equivalent fraction to equity can be calculated by using the formula below;

The first step is to determine or Calculate the value of fraction to equity.

Hence, the fraction to equity = risk premium/(market standard deviation)^2 - risk aversion.

= 8.10% ÷ [(20.48%)^2 × 3.5 = 0.5518.

Therefore, the value for fraction of the portfolio that should be allocated to T-bills = 1 - fraction to equity = 1 - 0.5518 =0.4482 .

8 0
1 year ago
Your company was recently served with a lawsuit. The outcome of the litigation will not be determined for several months, but it
klemol [59]

Answer:

According to GAAP,Provide a disclosure on financial statements regarding the pending litigation

Explanation:

According to GAAP, Provide a disclosure on financial statements regarding the pending litigation.

A statement disclosure will communicate relevant information not captured in the statement itself  to a company's stakeholders.

According  to GAAP the financial statements must have disclosure notes.

the other choices are incorrect as they do not provide any defense or protective measure against the case filed.

4 0
2 years ago
Modern Refurbishing Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a
IgorLugansk [536]

Answer:

a. 13.13%

Explanation:

Let irr be x%

At irr, present value of inflows = present value of outflows.

850 = 300/1.0x + 290/1.0x^2 + 280/1.0x^3 + 270/1.0x^4

     x = IRR

      = 13.13%

Therefore, The project's IRR is 13.13%

4 0
1 year ago
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