1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
KonstantinChe [14]
3 years ago
8

Suppose you borrow $10,000 right now to start a business. If the terms of the loan require you to pay back $16,000 in 5 years, w

hat is the implied annual compound interest rate
Business
1 answer:
Alexxandr [17]3 years ago
8 0

Answer:

r = 9.86%

Explanation:

The formula for calculating the future value of an invested amount yielding a compound interest is given by:

FV=PV(1+\frac{r}{n})^{nt}

where:

FV = future value = $16,000

PV = present value = $10,000

r = interest rate = ?

n = number of compounding period per year = 1

t = time in years = 5

∴ 16000=10000(1+\frac{r}{1})^{5}

dividing both sides by 10,000

\frac{16000}{10000} =\frac{10000(1+\frac{r}{1})^{5}}{10000}

1.6 = (1 + r)^{5}

to remove the power of 5, we have to take the 5th root of both sides:

(1.6)^{1/5} = (1 + r )^{5 * 1/5}

Using your calculator:

1.09856 = 1 + r

∴ r = 1.09856 - 1 = 0.09856

r = 0.0986 = 9.86%

∴ r = 9.86%

You might be interested in
• define the market process, the command process, and the traditional process. How does each process deal with the basic questio
kupik [55]

Answer:

Set Objectives. Start with setting marketing objectives. ...

Do Your Research. The market research you do will drive the decisions you make when deciding upon your marketing strategy. ...

Make Decisions. ...

Write It Down. ...

Summary.

4 0
2 years ago
For the last two months thomas has been worried that something bad is going to happen. he can't pinpoint the source of this feel
yan [13]
Thomas may be suffering from generalised anxiety as far as the situation describes. Generalised anxiety disorder is defined as the excessive worrying of an aspect of life for a reason that is vague. They worry too much may it could either be family, studying, or even their health.
5 0
3 years ago
Jason and Paula are married. They file a joint return for 2020 on which they report taxable income before the QBI deduction of $
mote1985 [20]

Answer: $28940

Explanation:

Their QBI deduction for the year goes thus:

Jason's QBI amount will be:

= $173000 × 20%

= $173000 × 0.2

= $34600

Paula's QBI amount will be:

= $28,300× 20%

= ($5660)

Therefore, their combined qualified business income will be:

= $34600 - $5660

= $28940

The overall limitation which is based on th modified taxable income will be:

= $247000 × 20%

= $49400

Since $28940 is lesser than $49400, their QBI deduction for the year is $28940

7 0
3 years ago
Stephen Thublin invests $1,000,000 in a 45-day certificate of deposit with 6.55% interest. What is the total interest income fro
givi [52]

Answer:

$8187

The CD has a rate of 6.55%. This rate is always annual. then, the interest paid for a year is $65.500. (360 days)

As the CD has a term of 45 days only the final interest paid is $8187

6 0
3 years ago
Askew Company uses a periodic inventory system. The June 30, 2021, year-end trial balance for Askew company contained the follow
Softa [21]

Answer:

$233,000

Explanation:

As we know that

Cost of goods sold = Beginning inventory + net purchase - ending inventory

where,

Beginning inventory = $32,000

Net purchase is

= Purchase - purchase discounts - purchase returns + freight in

= $240,000 - $6,000 - $10,000 + $17,000

= $241,000

And, the ending inventory is $40,000

So, the cost of goods sold is

= $32,000 + $241,000 - $40,000

= $233,000

We simply applied the above formula so that the cost of goods sold could come

7 0
3 years ago
Other questions:
  • Prior to the 1870s, both gold and silver were used as international means of payment and the exchange rates among currencies wer
    11·1 answer
  • At magnira corp., a company that manufactures fruit preserves, fruits of excellent quality are used to make jams, jellies, and m
    5·2 answers
  • In the multiplex industry, Vibrant Movies Inc. is an upscale multiplex that focuses on superior customer experience. The firm ch
    6·1 answer
  • PS.02 A process that utilizes inexpensive general-purpose capital equipment will tend to have higher skilled workers.
    10·1 answer
  • When analyzing a price-earnings ratio:_________.
    6·1 answer
  • If a firm's variable cost per unit estimate used in its base case analysis is $50 per unit and they anticipate the upper and low
    14·1 answer
  • Assume Joe Harry sells his 25 percent interest in Joe's S Corporation, to Tyrone on January 29. Using the specific identificatio
    11·1 answer
  • MARK MORE THAN ONE PLS!!!!!!!! HELP!!!!
    7·1 answer
  • Industry value chains Multiple choice question. generally have little effect on the company's cost competitiveness and customer
    5·1 answer
  • Clemson University Urgently needed $30 million to properly execute a student testing plan during fall of 2020. Clemson approache
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!