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3 years ago

In a free market system, prices will tend to...

Business

1 answer:

bulgar [2K]3 years ago

4 0

I believe it is B... but I’m not quite sure

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Bianca took out a $2,600 unsubsidized Stafford loan. She will be attending school for four years, and she wishes to have the loa

Gwar [14]

Interest capitalization is defined as the unpaid interest when added to the principal amount of the loan. It increases the overall cost of the loan.

Bianca will have to pay $13.43 monthly to avoid interest capitalization.

Given that:

Principal value of loan = $2600

Maturity Time = 10 years = 120 months

Interest rate = 6.2% = 0.062

Now, to find the amount of payment by using the formula:

$\rm Payment&=\rm \dfrac{Rate\times Principal}{1-(1+rate)^{time}}\\\\\\\rm Payment&=\rm\dfrac{0.062 \times 2600}{1-(1+rate)^{120}}\\\\\rm Payment &= \rm \161.32$

Total payment that is to be paid in 1 year:

$\rm Monthly\; Payment &=\rm\dfrac{161.32}{12}&= \$13.43$

Thus, the payment that Bianca has to pay is $13.43.

To know more about interest capitalization, refer to the following link:

brainly.com/question/417585

3 0

2 years ago

Welcome Inn Hotels is considering the construction of a new hotel for $90 million. The expected life of the hotel is 30 years, w

steposvetlana [31]

Answer:

a. Annual Net cash flows:

= Revenue - Expenses + Depreciation

= 26,000,000 - 15,000,000 + (90,000,000 / 30 years)

= 11,000,000 + 3,000,000

= $14,000,000

b. Net present value:

= Present value of cashflows - Investment cost

= (Annual cashflow * present value of an annuity, 14%, 30 periods) - Investment cost

= (14,000,000 * 7.003) - 90,000,000

= $8,042,000

c. Company should construct the hotel as it would bring a positive Net Present Value

Note: In "b" the cashflow was treated as an annuity because it is constant.

3 0

3 years ago

What is an example of what a business would write a check for

Helga [31]

Answer:

To pay in taxes, to purchase goods to make things if the business is a factory etc. hope this helps

Explanation:

7 0

4 years ago

Select the correct answer.

valkas [14]

Answer: The answer would be C. Collective bargaining

4 0

3 years ago

A company uses the FIFO method for inventory costing. During a period, a production department had 56,000 units in beginning goo

marishachu [46]

Answer:

158460 ( B )

Explanation:

Given data :

production department ; 56000 units

process inventory = 32% = 0.32

completed and transferred units = 167000

ending goods units = 14000, 67% complete = 0.67

attached below is the table representation of the solution

The number of equivalent units produced by the department

= ∑ all the variables listed on the table

= 38080 + 11100 + 9380 = 158460

7 0

3 years ago