Answer:
Compound interest; amortized loans; amortization schedule; largest; decline; smallest; increases.
Explanation:
An important application of compound interest involves amortized loans. Some common types of amortized loans are automobile loans, home mortgage loans, and business loans. Each loan payment consists of interest and repayment of principal. This breakdown is often developed in an amortization schedule. Interest is largest in the first period and declines over the life of the loan, while the principal repayment is smallest in the first period and it increases thereafter.
Amortization in accounting is used to periodically lower the book value of a loan principal or an intangible asset such as intellectual property over a set period of time.
The compound interest formula is given below;
Where;
A is the future value.
P is the principal or starting amount.
r is annual interest rate.
n is the number of times the interest is compounded in a year.
t is the number of years for the compound interest.
Answer:
According to the basic DCF stock valuation model, the value an investor should assign to a share of stock is dependent on the length of time he or she plans to hold the stock.
A. True
Explanation:
The DCF (Discounted Cash Flow) method of stock valuation is based on the assumption of the time-value of money. This approach considers that the cash flow that is received today is much more than the same amount of cash flow received any other time in the future. And the time of the future receipt or payment affects the amount of the cash flow, with decreasing consequences based on increasing time into the future.
It is noted as so due to the fact the reader would like to know the reasoning behind the message. Following that the bots used to monitor emails for scams, spam, or viruses typically send off empty subjects as a spam.
Answer:
(D) 7 percent
Explanation:
Nominal interest rate is approximately equal to real interest rate + inflation rate
= 4% + 3%
= 7%.
Thus, the minimum nominal interest rate that Kaitlin would be willing to accept from her local bank is 7%.
Answer:
The correct answer is letter "D": marginal utility is positive for the 4th slice and negative for the 5th slice.
Explanation:
Marginal Utility refers to the additional benefit or satisfaction gained from consuming one more unit of a good or service. In economics, something has utility if it satisfies any consumer wants or needs whether for usefulness or pleasure. It is a subjective term.
If the marginal utility is positive, consumers would want to acquire more of the good or service but if negative they will stop consuming it. Thus, the marginal utility for the 4th pizza slice is positive but the marginal utility for the 5th slice is negative.
