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3 years ago

A loan requires that the 8% interest be compounded quarterly for 4 years. Find the number of compounding periods

Business

1 answer:

baherus [9]3 years ago

4 0

Answer:

16 compounded periods

Explanation:

Here ,the loan amount was not given , they asked to compute only the compounding period of the loan.,

The period of loan is 4 years

interest calculation mode is quarterly

= (12 months÷4 = 4 times in a year) $(12 months÷4 = 4 times in a year)$

= 4 ×4 = 16 compounding periods $4 ×4 = 16 compounding periods$

Hence the 8% interest bearing 4 years loan will compounded 16 times

You might be interested in

A stress test in finical marketing means:_____.

Brilliant_brown [7]

Answer:

Explanation:

Stress tests are carried out to determine how financial systems would react in periods of extreme stress eg. financial or economic crisis.

Stress situations are simulated and the reaction of the financial system to the stress is measured. Based on the reactions of the financial system, steps are taken to further improve or strengthen the financial system.

The scenarios used in a stress test can be based on historical events (events that have already occurred) or hypothetical events.

8 0

3 years ago

?fournotts printing inc. manufactures and sells photocopiers, printers, and scanners to various corporate offices. this is an ex

vovangra [49]

This is an example of business marketing.
When somebody sells their goods and services to individuals or organizations for purposes other than personal use, that would be considered business marketing. These corporate offices won't use the goods for their personal use, but rather for work.

8 0

3 years ago

Aspen's Distributors has a levered cost of equity of 13.84 percent and an unlevered cost of capital of 12.5 percent. The company

Reptile [31]

Answer:

8.60%

Explanation:

We use the MM proposition II with taxes

$r_e = r_a + \frac{D}{E} (r_a-r_d)(1-t)$

ra 0.125

D 5000

E 9600 (14,600 assets = 5,000 liab + equity)

rd ??

taxes 0.34

re 0.1384

We set p the formula and solve:

$0.1384 = 0.125 + \frac{5,000}{9,600} (.125-r_d)(1-.34)$

$0.1384 - 0.125 = 0.34375 (.125-r_d)$

$0.0134 = 0.34375\times 0.125 - 0.34375\times r_d$

$r_d = (0.34375\times 0.125 - 0.0134)\div 0.34375$

rd = 0.860181818 = 8.60%

6 0

3 years ago

Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $1

mina [271]

Answer:

-$475,000

Explanation:

Total revenue = Baskets of peaches × Price

= 100,000 × $3

= $300,000

Explicit cost:

= Rent equipment + wages

= $100,000 + $100,000

= $200,000

Implicit cost:

= Land × Interest + salesman earned

= $1,000,000 × 0.55 + $25,000

= $575,000

Total cost = Explicit cost: + Implicit cost

= $200,000 + $575,000

= $775,000

Economic profit = Total revenue - Total cost

= $300,000 - $775,000

= -$475,000

8 0

3 years ago

If airlines do not change their prices how else might they try to compete with each other?

WARRIOR [948]

<h3>Hello there!</h3>

Your question asks how airlines compete with each other if they don't change their prices.

<h3>Answer: By giving the customers better service.</h3>

If an airline company doesn't want to change their prices for a flight, but still want to compete with other airlines, then they would try to compete by providing more and better services to the customers.

When an airline competes with providing better services, it attracts customers to choose them because customers could feel more comfortable on their flight.

Airlines can compete by providing:

Wi-Fi
More space
Entertainment
Food

Airlines now a days are starting to provide Wi-Fi services to its customers in the aircraft. Since we live in a world that needs Wi-Fi for electronical things, airlines are providing Wi-Fi in order to have people choose their airline for their flight. Providing Wi-Fi to its customers will not only bring in more customers, but can keep people busy on the flight, having no disruptions since people would be focused on their personal stuff on their laptop/phone/etc.

Airlines are also competing by providing more space in their cabin. People that go on flights feel very cramped in their seat; having little leg room between their legs and the seat in front of them. Airlines are making more leg room and space for the customers in order for them to enjoy the flight. This is luring in customers because customers want to feel comfortable, and space is the main thing that customers want in their flights.

Airlines are also competing by providing entertainment. The entertainment part of an aircraft is in the little screen that would be in front of the customer, behind the seat in front of them. This entertainment service would entertain people on their flights. This entertainment service could provide movies, world map, and etc. Flights are boring, and so airlines are trying to make the flights more entertaining.

Airlines are also competing by providing better food. Who doesn't get hungry on the plane? If airlines are giving terrible food, why would someone want to choose that airline again? Airlines are providing better food in order for customers to choose them as their airline. Food is a major thing that lures people into different airlines. This is something that airlines are trying to improve all the time.

To sum it all up, these are just some of the ways airlines compete with each other, without having to change the price of their flights.

<h3>I hope this helps!</h3><h3>Best regards, MasterInvestor</h3>

5 0

4 years ago