Answer: B - beyond the control of either party to the escrow
Explanation: An Escrow account is a legal term used where funds are held in trust whilst two or more parties complete a transaction.
An Escrow is a trusted third party that will be in custody of the funds during the cause of the transaction and will be the one to pay the merchant after all the escrow agreement are fulfilled.
Escrow account reduces the risk of fraud by acting as a trusted third-party that collects, holds and only disburses funds when both Buyers and Sellers are satisfied. It apply mainly to real estate transactions.
Answer:
b) Cut hours and workers in order to minimize costs
Explanation:
Rational decision making is the process by which a business manager analyses different factors and outcomes before choosing a particular line of action.
The manager will have to choose between alternative options that are available.
In the given instances only the option to cut hours and workers in a bid to reduce cost shows the manager made a decision to achieve a goal (cost reduction).
The other options do not define a clear business goal and a strategy to achieve it
Answer:
Explanation:
going by the given question above,
a)As the annuity pay is beginning of each year, it is annuity due
b)Present value(P)=$ 1.5/3 million= $ 0.5 million= $ 5*105
Periodic Payment When PV is known
i=0.072/4=0.018
N=5*4=20
x=(1+i)N-1=(1+0.018)19=1.403
A=5*105 / [ ((1- (1/1.403))/0.018)+1]
A=$ 29,485
Annuity pay at the starting of each quarter is $ 29,485
Answer:
By 59.17 % the GDP of Canada increase from 1990 to 2000 in U.S. dollars
Explanation:
For computing the increasing percentage, first we have to compute the GDP for the year 1990 and GDP for the year 2000
So, the GDP for the year 1990 = GDP of Canada × U.S cents
= $550 × 0.88
= $484
And, the GDP for the year 2000 = GDP of Canada × U.S cents
= $1070 × 0.72
= $770.4
Now, compute the increasing percentage which is computed below
= Difference of GDP amount ÷ 1990 GDP × 100
= 286.4 ÷ 484 × 100
= 59.17%
Hence, by 59.17 % the GDP of Canada increase from 1990 to 2000 in U.S. dollars
Answer:
The present value of the fifth payment is $30710.
Explanation:
The rate of interest must include the effect of inflation which can be found by the fisher formula:
(1+i) = (1+r) * (1+f)
After putting values we have:
(1+i) = (1+.04) * (1+.06) = 1.1024
This implies
i = 10.24%
So the present value of fifth year inflow is:
Present Value = $50,000 * discount factor at 5 years time
= $50,000 * 1/(1 + 0.1024)^5 = $50,000 * 0.614 = $30710
So the present value of the fifth payment that is receivable in five years time is worth $30710 in todays value.
