Amortizing a loan P over n periods at i% interest / period, the payment per period is given by:
In given situation,
P=20000
period=month
i=10%/12
n=5*12=60 months
A. monthly payment amount
to the nearest cent
B. EAR (effective annual rate)
the APR is 10%, but compounded monthly.
So
EAR=(1+i/12)^12-1
=(1+0.1/12)^12-1
=0.104713
=10.4713% (effective annual rate)
B. credit to Unearned Warranty Revenue, $871
Answer and Explanation:
The following theories of profit best explain the profits of pharma companies:
1. Risk bearing - The theory says the higher the risk, the higher the rewards. The pharma companies take huge risks in inventing a new drug, having trials and the getting FDA approvals.
2. Monopoly - If a new drug is approved, the pharma company gets a patent over it, which means that it will have an effective monopoly on that segment of the market.
3. Innovation - it states that innovation is what keeps a company ahead. And pharma industry is built on innovation. Pharma companies have to continuously find new drugs because once patents run out on existing drugs, there are no profits to be made.
The word secure is a protected sounding word so it’s the process of securing something from a business to protecting something from terrorist BASICALLY protecting♂️
