It will take 32.55 months for the account to be paid off.
In this question, we have r = 1.40%, PMT = $500 and Present Value = $13,000.
We can use the nper formula in Excel to arrive at the answer.
The formula in Excel is : =nper(rate, pmt, pv,[fv],[type])
When we substitute the values in the question, the nper formula looks like this:
=NPER(0.014,500,-13000)
We enter the present value of the amount outstanding as a negative value, since excel considers the present value as an outflow (expense).
Answer:
In the period since the financial crisis of 2007-2009, inflation has been low in many countries, while a few experienced outright deflation. Why might unexpected deflation be of particular concern to someone managing a bank? Unexpected deflation is associated with (falling net worth) of borrowers, as the nominal value of their assets (falls) but the dollar amount of their liabilities (remains the same) . This weakens creditworthiness and can lead to (reduced) lending as asymmetric information problems worsen. In turn, ( reduced) credit supply can diminish economic activity, leading to (increased) defaults, a deterioration in the quality of the bank’s balance sheet and ultimately to bank insolvency.
Explanation:
Deflation is described as a period where there is persistent fall in prices of good and services, this affects different people like pensioners, lenders and borrowers in different ways.
Answer:
As Fabian opened his store and made a purchase in credit, this made the asset as current assets and they are mainly getting converted to current liabilities as because he is liable to pay for the products he purchased but was unable to sell those items.
Explanation:
There are many ways of making money, but when there is a way of earning money which is not predictable, then it becomes very difficult to make decisions and analyze for anything,
Every point on budget line graph represents each number of possible unit that can be purchased with a given income.
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What is a budget line graph?</h3>
Budget line graph shows series of combinations of two products that can be consumed by an individual at a given price and income.
- Budget line is said to be a constraint line graph because an individual cannot go beyond the limits of consumption.
- Each unit of goods is indicated on the graph using with a dot and only the combination of the two goods that falls within budget can be purchased.
Therefore, every point on budget line graph represents each number of possible unit that can be purchased with a given income.
For more details on budget line kindly check brainly.com/question/24765766
