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Simora [160]
3 years ago
8

A company borrows 100,000 today at 12% nominal annual interest. the monthly payment of a 5 year loan is most nearly:

Business
1 answer:
alex41 [277]3 years ago
5 0
Formula for the monthly payment:
M = P * r * ( 1 + r )^n / (( 1 + r )^n + 1 )
where:  P = $100,000    r = 0.12 : 12 = 0.01      n =12 * 5 = 60
M = 100,000 * 0.01 * ( 1 + 0.01 )^60 / (( 1 + 0.01 )^60 + 1 ) =
= 1,000 * ( 1.01 )^60 / (( 1.01 )^60 + 1 ) =
= 1,000 * 1.8167 / 0.8167 = 1,000 * 2.22444  =
= $2,224.44
The monthly payment is $2,224.44.
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The expected return on a portfolio: Group of answer choices can be greater than the expected return on the best performing secur
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Answer:

is limited by the returns on the individual securities within the portfolio

Explanation:

Portfolio is simply defined as a list of securities showing how much is (or will be) invested in each of them.

The expected return on a portfolio is calculated as the weighted average of the expected returns on the securities that the portfolio involves. The weight of each security is the a Portion or a fraction of wealth invested in that security. Expected return on a portfolio of N securities is: rp= sum (Xr).

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6 0
3 years ago
A news release for a diet product company reports: There's good news for the 65 million Americans currently on a diet. Its study
dexar [7]

Answer:

C. biased, understating the effectiveness of the diet.

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As the company promises the population of America which is too huge, just on the study based on 20 employees of the company itself.

This clearly means that the company is trying to sell the product with false reports as the sample size of study is to small to represent entire American Population.

Further that too the employees could be influenced to get the false results.

As since the employees could be influenced and that the results can be altered accordingly, the report is biased, and is misleading.

6 0
3 years ago
Harmon recently quit his job that he had worked at for the past 10 years in
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d. Harmon only needs to show the bank his record of income from

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5 0
3 years ago
Consider a corporate bond with a $1000 face value, 8% coupon with semiannual coupon payments, 7 years until maturity, and a YTM
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Answer:

$961.42

Explanation:

firstly, we calculate the clean clean price below:

FV= 1,000

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I= 4.5 (9 / 2)

N= 14 (7 × 2)

Thus, PV= 948.89

Accrued Interest = coupon × (days since last payment/days in current coupon period)= 40 × (57 / 182) = 12.53

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3 0
4 years ago
The current value in today's dollars of a future sum of money is called :______
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4 0
2 years ago
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