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Darya [45]
3 years ago
12

Suppose you take out a home mortgage for ​$180.000 at a monthly interest rate of 0.4​%. If you make payments of ​$1000​/month, a

fter how many months will the loan balance be​ zero? Estimate the answer by graphing the sequence of loan balances and then obtain an exact answer.
Business
1 answer:
cluponka [151]3 years ago
7 0

Answer:

<u>time = 318.77</u>

It will be after 318 months

Explanation:

We are asked to find the time of an annuity of 1,000 monthly payment

which present value is 180,000

C * \frac{1-(1+r)^{-time} }{rate} = PV\\

C = 1000

rate = 0.004

time ??

PV = 180,000

1,000 \times \frac{1-(1+0.004)^{-time} }{0.004} = 180,000\\

We clear out the dividend:

1-(1+0.004)^{-time} = \frac{180,000\times 0.004}{1,000}\\

Then we clear the power up, notice it is negative, so we have to multiply by (-1)

(-1) \times (-(1+0.004)^{-time}) = (-1) \times (0.72 - 1)}\\

1.004^{-time} = 0.28

We now use logarithmics to solve for time

log_{1.004}0.28 = \frac{log0.28}{log1.004} = -318.87 =-time

<u>time = 319</u>

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OverLord2011 [107]

Answer:

B) both curves would shift to the right.

Explanation:

The long-run aggregate supply (LRAS) curve will shift to the right because the production costs will decrease, increasing total production output and lowering prices.

The production possibilities frontier (PPF) will also shift to the right because more production output increases total supply, and that increases the production possibilities of the country.

5 0
3 years ago
At what point does entertainment end and marketing begin? Why did you draw the line there?
Tcecarenko [31]

Answer:

Explanation:

The central idea behind marketing is the idea that a firm or other entity will create something of value to one or more customers. The end objective of marketing is selling a product and in this case we presume marketing means advertisement.

Entertainment can be separated from marketing activities and appeal of entertainment can be used to achieve different goal. Entertainment can only be used for holding attention and interest of audience that would be the consumer or it gives pleasure or delight. It is an idea or task which is developed for keeping attention of audience and this process is accelerated by entertainment industry in order to sell entertainment product. But according to psychologists entertainment is just attainment of gratification and no other result or measurable benefits can be achieved by entertainment and role of entertainment ends here. Marketing begins with encouraging people towards purchasing the commercial product. Behind the scenes tactics like advertising, production, placement and pricing incorporated in marketing. Main objective of marketing is attracting consumers towards the product or services provided by the organization. While entertainment just hold attention and interest of consumers and it is the line between..The central idea behind marketing is the idea that a firm or other entity will create something of value to one or more customers. The end objective of marketing is selling a product and in this case we presume marketing means advertisement.

Entertainment can be separated from marketing activities and appeal of entertainment can be used to achieve different goal. Entertainment can only be used for holding attention and interest of audience that would be the consumer or it gives pleasure or delight. It is an idea or task which is developed for keeping attention of audience and this process is accelerated by entertainment industry in order to sell entertainment product. But according to psychologists entertainment is just attainment of gratification and no other result or measurable benefits can be achieved by entertainment and role of entertainment ends here. Marketing begins with encouraging people towards purchasing the commercial product. Behind the scenes tactics like advertising, production, placement and pricing incorporated in marketing. Main objective of marketing is attracting consumers towards the product or services provided by the organization. While entertainment just hold attention and interest of consumers and it is the line between... entertainment and marketing.

.

7 0
3 years ago
The _ is the financial statement describing a firms yearly cash receipts and cash payments
erastova [34]
Statement of cash flows....
6 0
3 years ago
An index model regression applied to past monthly returns in Ford’s stock price produces the following estimates, which are beli
Neko [114]

Answer:

(1.32%)

Explanation:

The computation of the abnormal change in Ford’s stock price is shown below:

Given that

rF = 0.1% + 1.1rM

If the market index rises by 10.2%

So, now the equation is

= 0.1% + 1.1 × 10.2%

= 0.1% + 11.22%

= 11.32%

And, the stock price rises by 10%

So, now the abnormal change in Ford stock price is

= 10% - 11.32%

= (1.32%)

7 0
3 years ago
Debby’s Dance Studios is considering the purchase of new sound equipment that will enhance the popularity of its aerobics dancin
Inessa05 [86]

Answer:

Cash Flow        Probability          Expected value

$3,840                    0.4                   $1,536

$5,280                    0.2                    $1,056

$8,110                      0.3                    $2,433

<u>$10,370                   0.1                    $1,307</u>

total                           1                    $6,332

a) the expected value of each yearly cash flow is $6,332

b) the present value of the expected cash flows = $6,332 x 3.5172 (PV annuity factor, 13%, 5 periods) = $22,270.91 ≈ $22,271

the NPV = -$24,500 + $22,271 = -$2,229

c) Debby should not buy the equipment since the project's NPV is negative.

4 0
3 years ago
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