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Brrunno [24]
3 years ago
13

A company must repay the bank a single payment of $20,000 cash in 3 years for a loan it entered into. The loan is at 8% interest

compounded annually. The present value of 1 (single sum) at 8% for 3 years is 0.7938. The present value of an annuity (series of payments) at 8% for 3 years is 2.5771. The present value of the loan (rounded) is:
Business
1 answer:
masya89 [10]3 years ago
6 0

Answer:

The present value of the loan is $15,877

Explanation:

Solution

Given that:

A company must pay back the bank a single payment of =$20,000

The loan of interest = 8%

Present value of 1 = 8% for 3 years (0.7938)

Present value of annuity = 8% for 3 years (2.5771

Now,

We solve for the loan present value

which is,

$20,000 * 0.7938 =$15, 877

For the annuity (series of payment) = $20,000 * 2.5771

= $51,542

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Check the explanation

Explanation:

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3 years ago
Not all goods are normal goods. If the demand for a good rises when income falls, the good is called an ________ ________. An ex
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Inferior good

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An inferior good is a good for which demand rises when income falls and demand falls when income rises.

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Which of the following is true about checks?
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Incomplete question. Here's the remaining question;

A. It is a two-party instrument.

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3 years ago
The Most recent financial statements for Moose Tours, Inc., appear below. Sales for 2016 are projected to grow by 20 percent. In
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Answer:

$5,006.07

Explanation:

The external financing needed = Projected Increase in Assets - Increase in Liabilities - Increase in Retained Earnings

Projected Increase in Asset = Assets Value*Sales Growth Rate

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