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Natalija [7]
3 years ago
13

A company purchased equipment and signed a 6-year installment loan at 8% annual interest. The annual payments equal $9,400. The

present value of an annuity factor for 6 years at 8% is 4.6229. The present value of a single sum factor for 6 years at 8% is .6302. The present value of the loan is:_________.
a. $9,400.
b. $5,924.
c. $14,916.
d. $56,400.
e. $43,455.
Business
1 answer:
AlekseyPX3 years ago
8 0

Answer: e. $43,455

Explanation:

Annual payments are constant so this is an annuity. To calculate the present value of an annuity, multiply the annity by the present value of an annuity factor corresponding with its discount rate and number of periods.

Present value of loan = 9,400 * present value of an annuity factor, 6 years, 8%

= 9,400 * 4.6229

= $43,455.26‬

= $43,455

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If a firm sells a prestige product, what kind of relationship between price and quantity demanded should it expect?.
solmaris [256]

For a firm that sells a prestige product, the relationship between price and quantity demanded is a <u>positive direct relationship</u>.

<h3>Why is the relationship between demand and price of prestige products direct?</h3>

The relationship between the demand and price of prestige products is direct because prestige products tend to sell better at high prices than at low prices.

And when the quantity demanded increases, the price tends to increase.

An example of a prestige product is an old car.

Thus, for a firm that sells a prestige product, the relationship between price and quantity demanded is a <u>positive direct relationship</u>.

Learn more about the demand for prestige products at brainly.com/question/6374886

3 0
2 years ago
Please indicate whether each item is Mostly False or Mostly True.
inn [45]

Answer:

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2. I can match my strong points to opportunities in the job market. True, I am a hard-working person and a dedicated person when it comes to Jobs.

3. I get along well with others, even those considered difficult. True, I help the people around me fix their problems even if I have my own.

4. I understand what to do to make myself more competitive. True, I create an opponent inside my mind and emotions to feel challenged and beat my record.

5. I have limited financial resources. False, due to my hard work and experience in business I have many financial resources.

6. I realize that others have more skills in advanced technology than I do.

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6 0
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The following account balances were taken from the adjusted trial balance for Urgent Messenger Service, a delivery service firm,
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Answer:

$186,750

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6 0
4 years ago
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Answer:

C

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