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
dybincka [34]
3 years ago
11

Suppose the borrowing rate rB=10% compounded annually. However, the lending rate (or equivalently, the interest rate on deposits

) is only 8% compounded annually. Compute the difference between the upper and lower bounds on the price of an perpetuity that pays A=10,000\$ per year.
Business
1 answer:
mylen [45]3 years ago
4 0

Answer: $25,000

Explanation:

From the question, we are told that the borrowing rate rB=10% compounded annually and the lending rate (or equivalently, the interest rate on deposits) is only 8% compounded annually.

The upper bounds on the price of an perpetuity that pays $10,000 per year will be:

= $10,000/10%

= $10,000/0.1

= $100,000

The lower bounds on the price of an perpetuity that pays $10,000 per year will be:

= $10,000/8%

= $10,000/0.08

= $125,000

The difference between the upper and lower bounds will now be:

= $125,000 - $100,000

= $25,000

You might be interested in
Assume company can produce any amount above 3.4 units. Naploc purchased the equipment for $12,000 and did not start production y
svetlana [45]

Answer: $12,000

Explanation:

As no production has been started yet, no other costs have been incurred by Naples for the equipment other than the $12,000.

The lowest price that Tebit should offer therefore should be the price that the equipment was purchased for as the equipment has not not been used to produce anything and so has not incurred any variable costs or donated any incremental value that would decrease or increase its value.

7 0
3 years ago
Choose the correct alternative regarding tax revenue:
insens350 [35]

The correct alternative regarding tax revenue:

<u>B-Personal income tax is currently the largest source of government revenue in South Africa.</u>

<u>Direct </u><u>Taxes</u>

  • it is levied on earnings and activities conducted.
  • the burden of tax cannot be shifted in case of direct tax.
  • it is paid directly by individual concerned.
  • it is paid after the income reaches in the hands of the taxpayer
  • Tax collection is difficult.
  • instance income tax, wealth tax etc.

<u>Indirect </u><u>Taxes</u>

  • it is levied on product or services.
  • the burden of tax shifted for indirect taxes
  • It is paid by way of one man or woman however he recovers the same from another person i.e. person who actually bear the tax ultimate consumer.
  • it is paid before goods/service reaches the taxpayer.
  • Tax collection is exceptionally easier
  • Example GST, excise duty custom duty sale tax carrier tax

Learn more about Tax brainly.com/question/16423331

#SPJ9

5 0
2 years ago
What might explain why the restaurant isn't named in the lawsuit?
Alecsey [184]
I think that it is A.  Please Mark Brainliest!!!
5 0
4 years ago
Simon, the CEO of a consumer electronics firm, receives a huge positive response from the industry experts and consumers for int
Anastasy [175]

Answer:

creative

Explanation:

He could either be a humble, extroverted, born or creative leader. From these options the most intuitive answer would be that he is a creative leader given that he has introduced "breakthrough technologies" in the companies products which would only be possible through a great amount of initiative and creativity.

The term "breakthrough technologies" is the key word in answering this question as it refers to innovation that has never been seen before. Thus, it would require a great deal of creativity to think of and successfully introduce and implement into a company.

7 0
3 years ago
Rolland Poust is a sophomore in the College of Business at Scandia Tech. Last semester he took courses in statistics and account
nikklg [1K]

Answer:

3.5

Explanation:

Grade point average (GPA) is the summation of all the numbered grades obtained divided by the number of credits taken or total obtainable points multiply by the maximum point receivable for a course. This can be calculated as follows:

1. Calculation of Total Obtainable Points

Statistics = A × hrs = 4 × 3 = 12

Accounting = A × hrs = 4 × 3 = 12

History = A × hrs = 4 × 5 = 20

History of jazz = A × hrs = 4 × 2 = 8

Rules of basketball = A × hrs = 4 × 1 = 4

Total obtained points = 12 + 12 + 20 + 8 + 4 = 56

2. Calculation of Total Points Obtained

Statistics = A × hrs = 4 × 3 = 12

Accounting = A × hrs = 4 × 3 = 12

History = B × hrs = 3 × 5 = 15

History of jazz = B × hrs = 3 × 2 = 6

Rules of basketball = A × hrs = 4 × 1 = 4

Total Points Obtained = 12 + 12 + 15 + 6 + 4 = 49

3. Calculation of GPA

GPA = (Total Obtained Points ÷ Total Obtainable Points) × the points that A receives (i.e. maximum GPA)

= (49 ÷ 56) × 4

= 0.875 × 4  

= 3.50  

Therefore, Rolland Poust's GPA is 3.5 out of 4.

The measure of location that has just been calculated is mean. The mean is obtained by adding all the values and then divide it by the number of values.  

Grade point average (GPA) is similar to mean because GPA is the summation of all the numbered grades obtained divided by the number of credits taken.

6 0
4 years ago
Other questions:
  • An automobile company assembles cars in a plant and purchases batteries from a vendor in china. the average cost of each battery
    15·1 answer
  • Rob Bill Berries 20 30 Fish 80 60 Rob Crusoe and Bill Friday spent their week-long vacation on a desert Island where they had to
    11·1 answer
  • Acquired $60,000 cash from the issue of common stock. Received an $8,200 cash advance for services to be provided in the future.
    15·1 answer
  • Suppose some firms exit an industry characterized by monopolistic competition. We would expect the demand curve of a firm alread
    10·1 answer
  • A property buyer should object to any defects in the title to the property A) within one year of the transfer of title. B) befor
    11·1 answer
  • As phasedown of shelter operations has begun, the American Red Cross Disaster Operations Supervisor has directed you to begin re
    13·1 answer
  • Select the correct answer.
    12·2 answers
  • What is a benefit of applying artificial intelligence to accenture work
    15·1 answer
  • During its first year of operations, Silverman Company paid $11,625 for direct materials and $11,000 for production workers' wag
    7·1 answer
  • After making a decision, Rosario seeks information that confirms the decision was a good decision and ignores conflicting inform
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!