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
Firdavs [7]
3 years ago
11

Betty borrows 19,800 from Bank X. Betty repays the loan by making 36 equal payments of principal at the end of each month. She a

lso pays interest on the unpaid balance each month at a nominal rate of 12%, compounded monthly. Immediately after the 16th payment is made, Bank X sells the rights to future payments to Bank Y. Bank Y wishes to yield a nominal rate of 14%, compounded semi-annually, on its investment. What price does Bank X receive
Business
1 answer:
Anastaziya [24]3 years ago
5 0

Answer:

Bank X will received: $13,554.73.

Explanation:

* Calculation of Betty equal monthly repayment by using present value formula for annuity: 19,800 = PMT/1% x ( 1 - 1.01^-36) <=> PMT = $657.643

* The effective annual rate at the time of loan selling is calculated as: (1+14%/2)^2 - 1 = 14.49% => The monthly discount rate is 1.1449 ^(1/12)  -1 = 1.134%

After the 16th payment is made, there is another 20 equal repayments, made at the end of each months; so we have 20 discounting periods, PNT = 657.643; discounting rate = 1.134%

=> Price Bank X receives = Present value of the repayment stream = 657.643/0.0134 x [1 - 1.0134^(-20)] = $13,554.73.

You might be interested in
Although many factors affect the value of real property, what is the primary driver in determining the value of real property?
garri49 [273]

Answer:

Supply and Demand

Explanation:

Although there are many factors which are given below:

1. Location of the real property

2. Supply and demand

3. The rate of interest

4. Population size

5. Market trends of property, etc

But the primary driver is supply and demand because if the demand of the property rise than the supply, the price of real property is rising whereas if the supply of the property is rise than the demand, the price of real property is declining

5 0
3 years ago
Which statement about stakeholders is BEST?
olasank [31]

Answer:

2. Stakeholders can potentially impact project development.

Explanation:

Stakeholders -

It refers to a party , which is interested in a company and the business can affect the stakeholder or the stakeholder can affect the business , is referred to as a stakeholder.

The type of primary stakeholder are , the suppliers , customers , employees and the investors.

The stakeholder have the capability to affect any project .

Hence , from the question,

The correct option is 2.

4 0
3 years ago
you are the ceo of internet provider commcore communications. it has come to your attention that a school district nearby your h
scoundrel [369]
<h3>I will try providing the best and latest robotics and gadgets to the school for better studying. You can elaborate it..</h3>
8 0
3 years ago
Consider the three theories of the upward slope of the short-run aggregate-supply curve. According to the sticky-wage theory, th
mrs_skeptik [129]

Answer:

According to the sticky-wage theory, the economy is in a recession because the price level has declined so that real wages are too high, thus labor demand is too low.

According to the sticky-price theory, the economy is in a recession because not all prices adjust quickly.

According to the misperceptions theory, the economy is in a recession when the price level is below what is expected.

Explanation:

The above mentioned are the three theories of the upward slope of the short-run aggregate-supply curve.

7 0
3 years ago
Without creating a separate business organization, Roy starts up Sole Savers, a new, pre-owned auto sales enterprise. Roy is
s2008m [1.1K]

Roy is a sole trader if he is not setting up a company instead starts a business.

<h3>What is a Business?</h3>

A business is the process of selling goods or services and earning revenue and profits through it, the business generates revenue which is deducted by the expenses incurred by the business. The business ensures the strategy to have a balance between these expenses and revenue so that there is some residue profit.

The sole trader is the business where the owner of the business is highly involved in day to day running of the business taking all the strategic decisions and responsible for all the debts of the business.

On the other hand a limited liability company is a business in which the owner of the company can be involved in day to day running of the operations but is not liable personally for the debts.

Learn more about Trader at brainly.com/question/27235892

#SPJ1

5 0
2 years ago
Other questions:
  • Gage buys from fishing guide corporation the exclusive right to sell fishing guide rods and reels in a certain area. their franc
    10·1 answer
  • Ritufa Foods, a food processing company, has collaborated with a nonprofit organization in an initiative to fund salad bars in s
    9·1 answer
  • Effects of containerisation,..... 10 points
    9·1 answer
  • Access Organics, Inc., hired Andy Hernandez to sell organic produce. Later, Hernandez signed an agreement not to compete with Ac
    10·2 answers
  • Carrie D's has 6 million shares of common stock outstanding, 2 million shares of preferred stock outstanding, and 10 thousand bo
    13·1 answer
  • The inflation rate is measured by calculating the percentage change in the consumer price index. True or False
    15·1 answer
  • Please answer the following questions.
    12·1 answer
  • What is the most common goal of a trade agreement?
    10·1 answer
  • The most important tax rate for determining an individual's incentive to work is the _____ tax rate.
    10·1 answer
  • He wacc is the appropriate discount rate for use with ______ projects but should be adjusted ______ for higher risk ones
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!