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
Bill, age 65 has 2020 unreimbursed medical expenses totalling $20,000 and an adjusted gross income of $170,000. How much of thos
svp [43]

Answer:

$7,250

Explanation:

You can deduct medical expenses <u>that exceed</u> 7.5% of your AGI (changes, but is currently at this level).

170,000 x .075 = 12,750

20,000 - 12,750 = $7,250

I hope this helps!

-TheBusinessMan

7 0
3 years ago
To validate the study, the supervisors call ________ of the respondents to inquire whether the field workers actually conducted
pentagon [3]

Answer:

10 to 25 percent

Explanation:

It is noteworthy that in such research work, in other to validate the study, the supervisors are usually required to call 10 to 25 percent of the respondents to inquire whether the field workers actually conducted interviews.

Remember, if such control policies are not in place, the field workers may not be performimg their duties, that is why the supervisors make such calls to monitor the field workers performance.

7 0
3 years ago
Marketing logistics includes all of the following EXCEPT ________. reverse logistics inbound logistics producer-centered logisti
Nana76 [90]

Answer:

producer-centered logistics

Explanation:

When it comes to marketing, <u>consumers and customers always come first</u>. There isn't such thing as producer-centered logistics (<u>not that i know of at least</u>) because the producers need to focus on the business and customers not themselves.

8 0
3 years ago
Strong leadership does not develop overnight. for a company like hp which is rebuilding from the ground up in some areas, the to
maksim [4K]
Strategists have three options at their disposal to drive firm growth: organic growth through internal development, or external growth through alliances or acquisition. In this article, HP’s CEO explicitly states that HP’s strategic path forward includes organic growth through internal development, specifically <span>through research and development.
(Build)   I hope this helps.</span>
6 0
3 years ago
(a) Explain the quantity theory and<br> (b) how does the theory explains the cause of inflation​
Digiron [165]

Answer:

The quantity theory of money defends that the money supply has a determining influence on the price level, that is, that the quantity of circulating money will necessarily be imputed to the value of the quantity of commercial operations that are carried out.

Therefore, this theory establishes that the creation of money without increasing the commercial volume (the total amount of tradable goods) will lead to inflation, since it is not really increasing the economic value of an economy, but only the money supply of it, which is "empty" of value, and therefore is coupled with existing commercial transactions.

8 0
3 years ago
Other questions:
  • Marcus volunteers for an organization that cleans up
    12·2 answers
  • Chocolate Co. reports the following information from its sales budget: ​ Expected sales:
    14·1 answer
  • Pepper Company is using the annual rate of return to evaluate a potential investment. The original investment required is $120,0
    12·1 answer
  • Select the correct answers from the drop-down menus,
    8·1 answer
  • MarketPoint Sales currently has a credit limit of $5,000. Because MarketPoint Sales has an excellent credit rating, BITS is incr
    15·1 answer
  • Suppose the required reserve ratio is 10% and the banking system initially has no excess reserves. If $20 billion in new currenc
    14·1 answer
  • Garcia Company issues 8.50%, 15-year bonds with a par value of $390,000 and semiannual interest payments. On the issue date, the
    7·1 answer
  • True or false the only reason to protect intellectual property is financial?​
    14·1 answer
  • LETTER<br>AN EXAMPLE OF A BUSINESS<br>bire me​
    10·1 answer
  • Kristen Lu purchased a used automobile for 8,000 at the beginning of last year and incurred the following operating costs:
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!