Answer:
The EAR of this arrangement is 22.24%.
Explanation:
The choice given by the store means that the present value of 52 weekly equal payment discounting at a weekly discount rate will be equal to the furniture price which is $1,520 ( as one year has 52 weeks). So, we apply the formula for calculating the present value of the annuity, with x denoted as discount rate as below:
1,520 = (32.33/x) * [1 - (1+x)^(-52)] <=> x = 0.387%.
As x = 0.387% is weekly rate, the EAR will be calculated as:
EAR = [ (1+0.387%)^(52) ] - 1 = 22.24%.
Answer:
=$11,439.96(Approx)
Explanation:
Consider the following calculations
Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
200,000=Annuity[1-(1.0391)^-30]/0.0391
200,000=Annuity*17.48257135
Annuity=200,000/17.48257135
=$11,439.96(Approx)
Answer:
The debit yield ratio is 9%
Explanation:
Rent = 12 units × 12 months × $1,050 = $151,200
Net Operating Income = Rent- Operating expenses - Expected vacancy and collection losses + Garage rent
= $151,200 - $35,700 - $30,240 + $3,840
= $89,100
Debt amount = Price × (1 - Down payment)
= $1,100,000 × (1 - 0.1)
= $990,000
Debt yield ratio =
=
= 9%
Answer:
Investor's before required rate of return is 12.5%
Explanation:
The investor required return is the pretax return on the investment before applying the tax rate of 28%.
The pretax rate of return on the investment can be computed using the after tax return formula below by changing the subject of the formula to pretax rate of return;
After rate of return=pretax rate of return*(1-t)
t is the tax rate of 28% or 0.28
pretax rate of return is unknown
after tax rate of return is 9%
pretax rate of return=after tax rate of return/(1-t)
pretax rate of return=9%/(1-0.28)
pretax rate of return=9%/0.72
pretax rate of return =12.5%
Answer:
a. not part of GDP because it is a transfer payment.
Explanation:
Unemployment compensation includes the funds given to a worker who is currently without a job but actively seeking one. Usually, it is funded from the taxes given to the state by employers.
GDP is the measure (in terms of money) of all goods made or services given in a time period (usually a year) in a particular country. Since the unemployment compensation does not reflect any produced goods or services, it is a <em>transfer paymen</em>t. Thus, it is not included in the GDP.