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2 years ago

Suppose your uncle offers you $100 today or $150 in 10 years. you would prefer to take the $100 today if the interest rate is

1 answer:

3 0

Suppose your uncle shows you $100 today or $150 in 10 years. you would prefer to take the $100 today if the interest rate is <u>5 percent.</u>

<h3>What is the interest rate?</h3>

An interest rate is the quantity of interest due per period, as a proportion of the amount lent, deposited, or borrowed

The total interest on a quantity lent or borrowed counts on the principal sum, the interest rate, the compounding frequency, and the length of the period over which it is lent, deposited or borrowed.

<h3>How high will interest rates go?</h3>

Market participants think the Fed rate hike cycle will peak in December in a capacity of 3.5-3.75%, followed by rate cuts early next year. This is consistent with anticipations of a recession.

To learn more about interest rate, refer

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A lender determines that a homebuyer can afford to borrow $220,000 on a mortgage loan. The lender requires an 85% loan-to-value

Dmitry [639]

Answer:

D: $259,000

Explanation:

The computation of the paying amount which borrower can pay for a property is shown below:

= Mortgage loan amount for borrow ÷ loan-to-value ratio

= $220,000 ÷ 85%

= $258,823.53

= $259,000 round off

We simply divide the mortgage loan by the loan to value ratio so that paying amount could arrive which borrower can pay for a property.

7 0

3 years ago

suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feedi

gayaneshka [121]

Answer:

Explanation:

5 0

3 years ago

Media planners seek to reach the largest possible percentage of their target audience with no monetary limitations.

CaHeK987 [17]

As regards media planners trying to reach a large percentage of their target audience with no limitations, this is <u>False</u>.

<h3>Why is this statement false?</h3>

The ultimate goal of a company is to reduce costs and make more profit. As a result, media planners try to keep costs as low as possible when engaging in ad campaigns.

This means that they try to reach the largest percentage of people they can reach, with limitations placed on them.

In conclusion, this is false.

Find out more on media planners at brainly.com/question/7289927.

4 0

2 years ago

Bond prices and yields Assume that the Financial Management Corporation's $1 comma 000-par-value bond has a 7.800 % coupon,

Neporo4naja [7]

Answer:

(a) Dollar price of the bond = Par value × Current price percentage

= $1,000 × 106.124%

= $1,061.24

(b) Bond's current yield:

Annual interest paid in dollars = Bond par value × Rate of interest

= $1,000 × 7.8%

= $78

$Current\ yield = \frac{Interest}{Bond\ value}$

$Current\ yield = \frac{78}{1,061.24}$

= 0.0734

= 7.34%

(c) Issue price of bond is $1,000 and current maturity price is $1,061.24. Thus, bond price is greater than the par value.

(d) Current yield is the return on bond at current price. Yield to maturity is 6.588 % and current yield is 7.34%. Since the current price is more than the par value, therefore, YTM is lower than the current yield.

3 0

3 years ago

Determine the beginning cash balance for Sweet Treats Eats if the net cash provided by operating activities is $35,000, net cash

Nataly_w [17]

Answer:

$50,000

Explanation:

Given the following information for Sweet Treats Eats

net cash provided by operating activities = $35,000

net cash used by investing activities = $42,000

net cash provided by financing activities = $12,000

ending cash balance = $55,000

Beginning cash balance + $35,000 - $42,000 + $12,000 = $55,000

Beginning cash balance = $55,000 - $35,000 + $42,000 - $12,000

= $50,000

6 0

3 years ago