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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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Binomial nomenclature.

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Answer:

e. there is downward pressure on the price level, and the government may want to conduct expansionary fiscal policy.

Explanation:

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This results in the upward movement in terms of pressure on the aggregate demand that leads to a rise in the level of price and the real GDP also rises which reduced the unemployment

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why is government intervention often crucial when dealing with both positive and negative externalities?
Dennis_Churaev [7]

Answer:

Because the government can use her sovereign power to both mitigate negative externalities as well as encourage positive externalities.

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A very Good example is Education. There is a third party benefit to the society when we have more educated citizens.

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To deal with both positive and negative externalities, government intervention is very crucial.

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6 0
3 years ago
1. Ira Schwab opens up a Schwab IRA and places $2,000 in his retirement account at the beginning of each year for 10 years. He b
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Answer:

He will have $102,979 in his retirement account in 10 years.

Explanation:

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Compounded Quarterly

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FV = A [ ( ( 1 + ( r / m )^mt ) - 1 / ( r / m )

FV = $2,000 [ ( ( 1 + ( 0.05 / 4 )^40 ) - 1 / ( 0.05 / 4 )

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So, Ira Schwab will have $102,979 in his retirement account in 10 years.

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"An entrepreneurial team is a group composed of the entrepreneur plus the firm's banker, CPA, and attorney."

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