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Ad libitum [116K]
3 years ago
8

What is the total compound interest of a loan for $5000 with an annual interest rate of 8% at the end of a two-year period?

Business
1 answer:
sukhopar [10]3 years ago
4 0

Answer:

= $832s

Explanation:

CI = 5000*(1+8/100)^2

   =5832 -5000

    = $832s

There is a difference between the CI and SI. For SI principal remains the same each year. However, when we deal with CI then the new principal is the starting principal plus the interest. And that is the difference between the two. Also, the formula hence for CI is:

CI= P(1 +R/100)^N -P

SI= PRT/100

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In august 2016, richard purchased and placed in service an office building costing $753,000, including $134,000 for the land. th
frutty [35]
I think the depreciation will be charged only on the value of the house so that would be $753000-134000=$619000 since the land wouldn't depreciate. The actual amount of depreciation I don't know, just that it will be based on this value of the building on the land.
8 0
3 years ago
Making decisions and taking actions to achieve a superior fit between the organization and its environment is.
MaRussiya [10]

Answer:

Making decisions and taking actions to achieve a superior fit between the organization and its environment is. strategic management

What is strategic management?

a process that uses vision, goals and objectives, internal, and external analysis, and implementation levers that can be used to help formulate and implement strategy.

8 0
2 years ago
Assume that the risk-free rate of interest is 6% and the expected rate of return on the market is 16%. A share of stock sells fo
Tju [1.3M]

Answer: Price of stock at year end =$53

Explanation:

we first compute the Expected rate of return using the CAPM FORMULAE that

Expected return =risk-free rate + Beta ( Market return - risk free rate)

Expected return=6% + 1.2 ( 16%-6%)

Expected return= 0.06 + 1.2 (10%)

Expected return=0.06+ 0.12

Expected return=0.18

Using the formulae Po= D1 / R-g  to find the growth rate

Where Po= current price of stock at $50

D1= Dividend at $6 at end of year

R = Expected return = 0.18

50= 6/ 0.18-g

50(0.18-g) =6

9-50g=6

50g=9-6

g= 3/50

g=0.06 = 6%

Now that we have gotten the growth rate and expected return, we can now determine the price the investors are expected to sell the stock at the end of year.

Price of stock = D( 1-g) / R-g

= 6( 1+0.06)/ 0.18 -0.06

=6+0.36/0.12

=6.36/0.12=  $53

3 0
3 years ago
In a certain year, the aggregate amount demanded at the existing price level consists of $100 billion of consumption, $40 billio
valkas [14]

Answer:

The answer is: decrease government spending or increase tax rates.

Explanation:

Nominal GDP is currently $170 billions (= $100 billions + $40 billions + $20 billions + $10 billions).

Since full employment GDP = $120 billions, the nominal GDP is much higher ($170 billions > $120 billions). So the government must try to cool the economy and the two main ways it can do it is by reducing government spending or by raising taxes which will lower private consumption.

5 0
3 years ago
What is the biggest attraction for business considering enganing in international business?
kvasek [131]
Option D. The size of the market

This is because they have an idea that with a larger market size the can gain economies of scale and make a larger profit.
3 0
3 years ago
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