Answer:
help create efficient markets and lower the cost of doing business. Intermediaries can provide leasing or factoring
Explanation:
Answer:
the purchasing power of the money increased
Explanation:
first we must calculate the future value of the money that was lent:
future value = present value x (1 + interest rate) = $680 x 1.03 = $700.40
if we want to know if the purchasing power of our money remains the same or not, we must discount the future value of the loan using inflation rate as the discount rate:
present value = future value / (1 + discount rate) = $700.40 / 1.02 = $686.67
the net present value of our loan = $686.67 - $680 = $6.67, so the purchasing power of our money increased
As a public service announcement at an airport
Answer:
A. Because the bank can invest your money to make more money for itself
Answer:
$788.35
Explanation:
In this question, we use the present value formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Future value = $1,000
Rate of interest = 14% ÷ 4 quarters = 3.5%
NPER = 4 × 4 quarter = 16 years
PMT = $1,000 × 7% ÷ 4 quarters = $17.50
The formula is shown below:
= PV(Rate;NPER;PMT;FV;type)
So, after solving this, the answer would be $788.35
