Answer: $338712.36
Explanation:
Given the following :
APR = 6.35% = 0.0635
Monthly payment = $1800
Cost of home = $340,000
Period (t) = 420
Monthly rate = 0.0635 / 12
Amount paid on loan = PV of monthly payment :
PMT(1 - (1 / (1 + r)^t)) / r
1800[(1 - (1 / (1 + 0.0635/12)^420)) / r]
1800[ (1 - (1 /9.1764488)) / r
1800[ 1 - 0.1089746] / (0.0635 / 12)
1800 [168.38275]
= $303088.95
Hence, amount yet to pay :
$340,000 - $303088.95 = $36911.05
Hence, balloon payment :
36911.05( 1 + r)^t
36911.05(1 + 0.0635/12)^420
36911.05(1 + 0.0052916)^420
36911.05(1.0052916)^420
36911.05 × 9.1764488
= $338712.36
Answer:
B. 2.8 years
Explanation:
Initial investment = -120,000+ 8,000 = -112,000
Yr 1 cash inflow = 40,000, hence net CF = 40,000-112,000 = -72,000
Yr 2 cash inflow = 40,000, hence net CF = 40,000- 72,000 = -32,000
Yr 3 cash inflow = 40,000, hence net CF = 40,000-32,000 = 12,000
Payback period = last year with negative net CF + (absolute net CF that year/ total CF the following year)
= 2 + (32,000/40,000)
= 2 + 0.8
= 2.8 years
Answer:
.d. The equilibrium quantity would increase, and the effect on equilibrium price would be ambiguous.
Explanation:
The use of the machine would increase the supply of lattes and price falls. The supply curve would shift to the right. If scientists discover that coffees reduce heart attack, the demand for coffee would increase and price would increase. The demand curve would shift to the right.
The combined effect would be a rise in equilibrium quantity and an indeterminate effect on equilibrium price.
I hope my answer helps you
Answer: (D) Marketing channel or channel of distribution
Explanation:
The marketing channel is one of the type of organization that perform various types of activities for purpose of transmission of the products and the services from the manufacturer to the customer or the end user.
It is also known as the distribution channel and it include the various types of business strategies for promoting the product.
According to the given question, the Kayak is one of the type of organization that publicly allow their database for the purpose of searching the best deals for the hotels or airline.
Therefore, The kayak is one of the part of marketing channel or the channel of distribution.
Answer:
The present value of the following series of cash flows discounted at 12 percent is:
$171,890
Explanation:
a) Data and Calculations:
Discount rate = 12%
$40,000 now;
$50,000 at the end of the first year;
$0 at the end of year the second year;
$60,000 at the end of the third year; and
$70,000 at the end of the fourth year
Future Value Discount Factor Present Value
$40,000 1 $40,000
$50,000 0.893 $44,650
$0 0.797 $0
$60,000 0.712 $42,720
$70,000 0.636 $44,520
Total present value $171,890
b) The present value is the discounted cash flow from series of future cash flows. The discount factor is applied to the individual cash flows, based on the number of years before the cash flow occurs.
