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Lelu [443]
3 years ago
9

If the interest is compounded semiannually, look up on the chart half the rate and twice the years. If the interest is compounde

d quarterly, look up one-fourth the rate and four times the years. What is the total amount and the amount of interest earned on $6,500 at 6% for 25 years?
Business
1 answer:
Radda [10]3 years ago
4 0

Answer:

if the interest is compounded annually:

$6,500 x (1 + 6%)²⁵ = $27,897

interest earned = $27,897 - $6,500 = $21,397

if the interest is compounded semiannually:

$6,500 x (1 + 3%)⁵⁰ = $28,495

interest earned = $28,495 - $6,500 = $21,995

if the interest is compounded quarterly:

$6,500 x (1 + 1.5%)¹⁰⁰ = $28,808

interest earned = $28,808 - $6,500 = $22,308

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Which type of inflation occurs when prices are high, then drop due to lower demand, and then are restored to a previous high lev
natta225 [31]

Answer:

Reflation

Explanation:

8 0
3 years ago
Cleftell Inc., a coal mining company in the United States, is the only supplier of coal in its area. The company is backed by th
Katarina [22]

Answer:

Oligopoly

Explanation:

Oligopoly - it is referred to as a marketing structure in which there are few suppliers in the market and every supplier has its own unique function and unique control over the market.

In the given question, cleftell Inc is also one of that firm which has its own control over the market that is why government back them so that they will supply the coal in discounted rate as before

3 0
3 years ago
At what value should the land be recorded in clementine repair service records?
adell [148]

Answer: $369,500

Explanation:

The Cost concept of accounting calls for the recording of Assets at their cost.

Clementine Repair services offered to buy the land at $350,500 when it was priced at $388,500.

The seller countered with $369,500 and Clementine accepted this.

This means that Clementine bought the land for $369,500 which makes it the cost price.

They should therefore record it at $369,500.

6 0
3 years ago
If a borrower can afford to make monthly principal and interest payments of 1000 and the lender will make a 30 year loan at 5 1/
Alexus [3.1K]

Answer:

The the largest loan this buyer can afford is 14,533.75.

Explanation:

This can be determined using the formula for calculating the present value of an ordinary annuity as follows:

Step 1: Calculations of the present value or the loan the buyer can afford for a 30 year loan at 5 1/2%

PV30 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV30 = Present value or the loan the buyer can afford for a 30 year loan at 5 1/2% =?

P = monthly payment = 1000

r = interest rate = 5 1/2% = 5.50% = 0.055

n = number of years = 30

Substitute the values into equation (1) to have:

PV30 = 1000 * ((1 - (1 / (1 + 0.055))^30) / 0.055)

PV30 = 1000 * 14.5337451711221

PV30 = 14,533.75

Step 2: Calculation of the present value or the loan the buyer can afford for a 20 year loan at 4 1/2%

PV20 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (2)

Where;

PV30 = Present value or the loan the buyer can afford for a 20 year loan at 4 1/2% =?

P = monthly payment = 1000

r = interest rate = 4 1/2% = 4.50% = 0.045

n = number of years = 20

Substitute the values into equation (1) to have:

PV20 = 1000 * ((1 - (1 / (1 + 0.045))^20) / 0.045)

PV20 = 1000 * 13.0079364514537

PV20 = 13,007.94

Conclusion

Since 14,533.75 which is the present value or the loan the buyer can afford for a 30 year loan at 5 1/2% is greater than the 13,007.94 which is the present value or the loan the buyer can afford for a 20 year loan at 4 1/2%, it therefore implies that the the largest loan this buyer can afford is 14,533.75.

5 0
2 years ago
A company is considering investing in a project that costs $300,000. The company uses straight-line depreciation and estimates t
Vaselesa [24]

Answer:

NPV = $-41,928.18

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

Cash flow in year 0 = $-300,000

Cash flow each year from year 1 to 10 = $42,000

I = 10%

NPV = $-41,928.18

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

7 0
3 years ago
Read 2 more answers
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