Answer:
b. the princpal paid for the one-year loan will be higher than the princpal paid for the four-year loan
d. the interest charges for the one-year loan will be lower than the interest charges for the four-year loan
Explanation:
Sam is comparing the costs of two loans.
The principal amount of each loan is $5,000.
One is due in one year and the other is due in four years.
Both have the same stated rate of annual interest.
Two of the following are true:
<u>b. the principal paid for the one-year loan will be higher than the principal paid for the four-year loan.</u>
Considering the time value of money, $5000 principal repayment in one year time discounted at 5% will be 5000/1.05^1 = $4,761 but if repaid in 4 years = 5000/ 1.05^4 = $4,113.5
d. the interest charges for the one-year loan will be lower than the interest charges for the four-year loan
5% on 5,000 for 1 year = $250 but if paid for 4 years will be 250 x 4 = $1000
Answer:
B. $228,122.
Explanation:
Number of quarters = 3 * 4 = 12
Quarterly interest rate = 12%/4 = 3%
From the table, the correct discounting factor for the future value (FV) = 1.42576
We then have:
FV = $160,000 * 1.42576 = $228,122
Therefore, the maturity value of the CD is $228,122.
Answer:
The answer would be
Explanation:
There are many benefits, both quantitative and qualitative, that provides effective management of diversity management. This management, in part, involves visualizing cultural differences as a positive element that adds value to all our actions.
Increase creativity and innovation capacity; people with diverse perspectives who bring new visions on familiar topics.
It can help improve communication because we learn to accept the divergent and deal with it
Reduces tensions and conflict in work teams.
The increase in the domestic price of both imported goods and the domestic substitutes reduces the amount of consumer surplus in the market. Tariff effects on the importing country's producers. ... The increase in the price of their product on the domestic market increases producer surplus in the industry.
Answer:
To determine the total amount of money that I will have in my account at the time of my retirement, we must consider the total amount paid into the PIMCO account during the last 15 years, and add to this value the potential amount to be paid in the next 20 years in the Vanguard account.
Thus, during the previous 15 years, I have deposited 700 dollars per month in my PIMCO account, with which I have a cumulative total of $ 126,000 (700x12x15). Also, I will potentially deposit another $ 168,000 (700x12x20) in the Vanguard account for the next 20 years.
Therefore, over the 35 years of savings, once the time has come to retire, I will have $ 294,000 in my retirement investment.
