In order to properly tackle this problem, we must understand the relationship between the nominal annual rate and real (effective) annual rate.
To do this:
-First you take the nominal rate, divide by the number of times it's compounded (converted) per year.
-Then, add one to that number, and raise that number to the power of how many times you compound per year.
Here is the method in practice:
First 3 Years:
Nominal rate= 2% ÷ 12 times/yr = 0.001667
Effective rate = 1.001667 ^12 = 1.020184
Next 2 Years (Discounting)
3% ÷ 2/yr = .015
1.015 ^ 2 = 1.061364
Next 4 years (Interest)
.042 ÷ .5 (once every 2 years) = .084
1.084 ^ (1/2) = 1.041153
The last 3 years are already expressed as an effective rate, so we don't need to convert them. The annual rate is:
1.058
I kept the 1 in the numbers (1.058 instead of 5.8% for example) so that it's easier to find the final number
Take every relevant number and raise it to the power of the number of years it's compounded for. For discounting, raise it to a negative power.
First 3 years: 1.020184 ^ 3 = 1.061784
Next 2 years: 1.030225 ^ -2 = .942184
Next 4 years: 1.041163 ^ 4 = 1.175056
Last 3 years: 1.058 ^ -3 = .84439
Multiply these numbers (include all decimals when you do this calculation)
1.062 * .942 * 1.175 * .844 = .992598
This is our final multiplier to find the effect on our principal:
.992598 * 2,480 = 2461.64
Answer is 2461.64
The amount of principal paid increases
Answer: Option C.
<u>Explanation:</u>
Installment loan advances incorporate any advance that is reimbursed with routinely booked installments or portions.
Every installment on a portion obligation incorporates reimbursement of a segment of the chief sum acquired and furthermore the installment of enthusiasm on the obligation.
I think because in a mutual they both gain and invest but on their own its too much
Answer:
OLIGOPOLY
Explanation:
If Reality, Inc. is a major producer of reality television shows and the company faces fierce competition from three other major producers of similar shows. If together, Reality, Inc. and its three rivals control almost all of reality television. Their market environment is called Oligopoly
Oligopoly can be defined as a market environment or structure where a small number of firms control the market; none of which can keep the others from having significant market share or influence.
It can also be said that Oligopoly is a collusion of a small number of firms, either explicitly or tacitly, to fix prices or control quantity supplied, in order to achieve above normal market returns.
Answer:
Maximum price= $11.9
Explanation:
Giving the following information:
Assuming a production level of 6,300 units:
Direct materials $ 4.20
Direct labor $ 4.30
Variable manufacturing overhead $ 3.40
The fixed overhead costs are unavoidable
Because the fixed overhead costs are unavoidable, we will concentrate on the variable costs.
The maximum price would be the total variable cost:
Total variable cost= 4.2 + 4.3 + 3.4= $11.9
Maximum price= $11.9
