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Anarel [89]
3 years ago
12

For various reasons related to trying to prevent a catastrophic recession during the pandemic, the federal government has and wi

ll continue to borrow trillions of dollars. Fortunately, they can borrow this money at a low interest rate. a) Assuming the government borrows $6 Trillion at a 0.5%, what is the required uniform annual payment to completely pay off this debt in 20 years
Business
1 answer:
Novosadov [1.4K]3 years ago
3 0

Answer:

$0.316 trillion per annum

Explanation

According to the scenario, computation of the given data are as follow:-

Interest rate = 0.5% = 0.005

Government Borrows = $6 trillion

Time = 20 years

Required Uniform Annual Payment= Government Borrows × Interest Rate × [(1 + Interest Rate)^Time period ÷ (1 + Interest Rate)Time period] - 1

= $6 trillion × 0.005 × [(1 + 0.005)^20 ÷ (1 + 0.005)^20 - 1]

= $0.03 trillion × [(1.005)^20 ÷ (1.005)^20 - 1]

= $0.03 trillion × (1.1049 ÷ 1.1049 - 1)

= $0.03 trillion × (1.1049 ÷ 0.1049)

= $0.03 trillion × 10.533

= $0.316 trillion per annum

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Answer: (C) When a​ country's real exchange rate appreciates​, it imports more and exports less​, causing its net exports to fall.

Explanation:

When a country's real exchange rate appreciates i.e the value of its currency increases, it imports more because more products could be bought with the same amount of the currency as a result of its increased value, and it export less because their goods would become more expensive for other countries resulting in reduced demand. Therefore, resulting in the fall of its net export. This is a form of trade balance.

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3 years ago
Sam’s Auto Shop services and repairs a particular brand of foreign automobile. Sam uses oil filters throughout the year. The sho
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Answer:

The EOQ is 353 units

Explanation:

The economic order quantity or EOQ is the quantoty that minimized the holding and ordering cost for invetory.

The formula for EOQ is,

EOQ = √(2*D*O) / H

Where,

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  • O is the ordering cost per order
  • H is the holding cost per unit per annum

The annual demand of oil filters by Sam is,

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The EOQ for Sam Auto Shop is,

EOQ = √(2*7800*16) / 2

EOQ = 353.27 Units rounded off to 353 units

3 0
3 years ago
Inflation is when _________ money is paid for the same amount of goods and services than in a previous time period. the same amo
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6 0
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Roth Service Co. experienced the following transactions for 2018, its first year of operations: Provided $82,000 of services on
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The overarching purpose of credit risk analysis is to: Question 11 options: a) Identify credit opportunities b) Determine a comp
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d) Quantify potential credit losses

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