Answer:
PV = PMT [(1 - (1 / (1 + r)ⁿ)) / r]
Where:
PV = The present value of the annuity
PMT = The amount of each annuity payment
r = The interest rate
n = The number of periods over which payments are to be made
PV = PMT [(1 - (1 / (1 + r)ⁿ)) / r]
= 1000 [(1 - (1 / (1 + 0.0083)²⁴)) / 0.0083]
= 1000 [(1 - (1 / 1.2194)) / 0.0083]
= 1000 [(1 - 0.8201) / 0.0083]
= 1000 [0.1799 / 0.0083]
= 1000 * 21.6747
PV = $ 21,674.70
Explanation:
Since the annuity is compounded monthly
r = 10% / 12 = 0.83%
n = 24
The document that explains your rights and responsibilities as a federal student loan borrower is A. your master promissory note.
The master promissory note refers to the legal document where one promises to repay their loans and any fees or accrued interests to the Department of Education.
The <em>master promissory note</em> also explains the terms and the conditions of the loan that's taken. It's simply a legally binding document. One has to understand the rights and then responsibilities before one takes the loan.
In conclusion, the correct option is your master promissory note.
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The board of governors of the federal reserve system. The interest rate that a bank charges another bank for an overnight loan may be referred to as the federal fund rate. In other terms.
It refers to the interest added to any overnight are borrowing or lending of excess reserves by others.The Federal Reserve uses the Federal Fund Rates to help keep inflation under control and promote healthy economic growth.In this situation, where a nation's economy is seeing a strong rise in inflation, I would advise raising the federal funds rate to help rein in the rising inflation rate.The relative abundance or scarcity of reserves at the Federal Reserve is directly tied to both the inflation rate and the Federal Funds Rate.If an economy is going through a sharp and protracted inflationary tendency, I'll suggest the following adjustments.Increase in reserve ratio: I'll do that. Discount percentage: I'll raise the discount percentage.Open market operations: I propose reducing the money supply by increasing the sale of government bonds.
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