Answer:
The correct option is (b)
Explanation:
Given:
Monthly payment for 6 months = $30 per month
Time period = 6 month (6 periods)
Monthly interest rate = 2%
In order to compute borrowed amount, present value of these payments need to be computed which is an annuity as same amount of $30 is paid.
Checking PVIFA table for 2%, 6 periods, annuity factor is 5.6014.
Borrowed amount = Monthly payment × PVIFA(2%,6)
= 30 × 5.6014
= $168.042
Borrowed amount is $168.042 or $168.22 approximately (difference in value due to annuity factor being rounded off)
Answer:
5%
Explanation:
The applicable formula is A = P( 1 + r) ^ n
where A= amount: P is the principal, r, interest rate, n time
In this case,
A = principal + interest = Rs 410 { Rs 4000 + Rs410}
P= Rs 4000
r= ?
n= 2
r is?
4410 = 4000(1 + r) ^2
(1 + i)^ 2 = 4410/4000
(1 + i)^ 2 = 1.1025
1 + i = √1.1025
1 + i = 1.05
i = 1.05 - 1
i = 0.05
0.05 × 100 = 5%
Answer:
internet is a vast computer network providing communication and information throughout the world and it is easily accessible nowadays ❤️
Answer:
b) help stop bank failures throughout the United States.
Explanation:
A bank run can be defined as a situation where bank clients or depositors make withdrawals of their money simultaneously from banks as a result of them being scared or afraid the depository institution will run out of cash (bankruptcy) and become insolvent.
The Federal Deposit Insurance Corporation which is also generally referred to as the FDIC was a New Deal program introduced by President Franklin D. Roosevelt in 1933 and it was designed to prevent bank failures or bank runs and restore the public's faith in the banking system.
Hence, the Federal Deposit Insurance Corporation (FDIC) was established on the 16th of June, 1933 so as to counter or mitigate the problem with bank runs.
Generally, the income generated from the premium payments of insured banks is used to fund or finance the Federal Deposit Insurance Corporation (FDIC).
Additionally, to avoid bank runs or other financial institutions from being insolvent, the Federal Reserve (Fed) and Central banks (lender of last resort) are readily accessible and available to give monetary funds to these institutions when they're running out of money and as well as regulate their activities.
In conclusion, the Federal Deposit Insurance Corporation (FDIC) was established in 1933, during the Great Depression, to help stop bank failures throughout the United States.
Answer:
Price of Bond= $907.766
Explanation:
The price of the bond is the present value of its future cash flow discounted at the required rate of return of 5.5%.
Price of Bond = PV of interest payment +PV of redemption value
<em>PV of interest payment:</em>
interest payment = 5.5%× 1000= 55
PV = A × (1+r)^(-n)/r
A- 55, r - 7%, n- 10 years
PV = 55, r- 5.5%, n- 10
PV = 55× 1.07^(-10)/0.07= 399.417301
<em>Present Value of redemption </em>
PV = F× (1+r)^(-n)
F= 1000, r- 7%, n- 10 years
PV = 1,000× 1.07^(-10)= 508.3492921
Price of Bond = 508.3492921 + 399.417301= 907.7665931
Price of Bond= $907.766
