1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kvv77 [185]
2 years ago
6

A person borrows $200 to be repaid in 8 years with 14% annually compounded interest. The loan may be repaid at the end of any ea

rlier year with no prepayment penalty.
a. What amount will be due if the loan is repaid at the end of year 1?
b. What is the repayment at the end of year 4?
c. What amount is due at the end of the eighth year?
Business
2 answers:
stealth61 [152]2 years ago
4 0

Answer:

Explanation:

Borrow amount =$200

Therefore principal =$200

Time 8years

Rate 14% per an um. Compound

1. Payment due at end of the first year i.e at t=1

Compound interest is given as,

A=P(1+r/n)^nt

A= amount

P= principal

r= rate

n = number of time the interest is compound, in this case it will be 1 because we are not told if is monthly.

t= time

A=P(1+r/n)^nt

A=200(1+0.14/1)^1×1

A=200(1+0.14)^1

A=200(1.14/1)^1

A=200×1.14

A=$228

2. The repayment after four years i.e at t=4

A=P(1+r/n)^nt

A=200(1+0.14/1)^4×1

A=200(1+0.14)⁴

A=200(1.14/1)⁴

A=200×1.14⁴

A=$337.79

3. At the end of 8years

t=8

A=P(1+r/n)^nt

A=200(1+0.14/1)^8×1

A=200(1+0.14)^8

A=200(1.14/1)^8

A=200×1.14^8

A=$570.52.

max2010maxim [7]2 years ago
3 0

Answer:

Explanation:

The formula to be used in calculation is FV = PV*(1+I)^n

FV - Future value at the end of periods

PV - Present value

r - interest rate

n - number of years

a. The amount due f the loan is repaid at the end of year 1

FV = 200*(1+0.14)^1 = 200*0.14 = $228

b. Repayment at the end of year 4

FV = 200*(1+0.14)^4 = 200* 1.6889 = $337.79

c. The amount due at the end of 8 year

FV = 200*(1+0.14)^8 = 200* 2.85 = $570.51

You might be interested in
Which of the following describe what producers offer as they compete for more customers? higher prices better customer service m
EleoNora [17]
B. better customer service 
6 0
3 years ago
Read 2 more answers
Carlos is the VP Sales for a consumer electronics company and has recently been reviewing the performance feedback and employee
Oliga [24]

Answer:

Compensation.

Explanation:

According to the information in the question above, it can be said that Carlos is exercising the function of compensation management. His functions are related to the compensation that employees receive for carrying out their work. Compensation managers are also responsible for maintaining the rules of benefits in compliance with management and legality, in addition to developing strategies that assist in retaining and hiring employees and all types of data and information on compensation in the organization.

3 0
2 years ago
The following data are available for Springer Corporation.
Alchen [17]

Answer:

B) $330,000

Explanation:

Cash from operating activities involves the cash inflows and outflows that is realised during normal busines s activities. It is the first section that appears in the statement of cash flows.

Other sources of cash flows is from investing activities and financing activities.

Operating cash flow= Net income+ Depreciation- Taxes +/- Change in working capital

Operating cash flow= 300,000+ 60,000- 15,000+ 30,000- 45,000= $330,000

6 0
3 years ago
On December 1, 20X1, Money Co. gave Home Co. a $200,000, 11% loan. Money paid proceeds of $194,000 after the deduction of a $6,0
zysi [14]

Answer: <em>(C.) $2,005</em>

Explanation:

Given :

Money Co. made a cash outflow of $194,000 for the $200,000 loan Money gave to Home Co.  

The book value of the loan is $194,000.

The stated rate is 11%.

Hence they will receive an effective interest rate of 12.4% on cash outflow.  

∴

Income from the loan = Book value × Effective interest rate × No. of months of the year

= $194,000 × 0.124 × \frac{1}{2}

= $2,004.67

3 0
3 years ago
People in the engineering, marketing, and operations departments were angry at each other, and to stop the finger-pointing, the
Licemer1 [7]

Answer:

The correct word for the blank space is: human.

Explanation:

Human or interpersonal skills are those abilities people have that let them interact with others effectively. Human skills are a must-need capability managers should develop at the moment of resolving conflicts within their organizations and dealing with employees in the day by day firm's operations.

4 0
3 years ago
Other questions:
  • HELPPP!!!!
    15·2 answers
  • The market for corn in country A is highly competitive. At the current market price of​ $5/bushel there is a shortage of​ 100,00
    12·1 answer
  • Security A and Security B have similar risks. However, Security A has a higher rate of return than Security B. The return on Sec
    5·1 answer
  • A candy manufacturer that made candy at a lower cost without improving the quality of the candy could be said to ________. incre
    6·1 answer
  • 7. Plush Furniture sells imported rosewood dining tables. The cost of one mode
    10·1 answer
  • Like a good economist, you calculated the opportunity cost of getting your college degree. suppose that at your university, you
    15·2 answers
  • In evaluating how well a company's strategy is working, the best place to start is
    13·1 answer
  • The Cornelius Company has an ROE of 14.4 percent and a payout ratio of 30 percent. What is the company’s sustainable growth rate
    15·1 answer
  • Which employees should be aware of how to turn off power to a shop in an emergency?
    13·1 answer
  • Consider two neighboring island countries called Euphoria and Bellissima. They each have 4 million labor hours available per mon
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!