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ser-zykov [4K]
3 years ago
9

Which of the following statements is CORRECT?a. An investment that has a nominal rate of 6% with semiannual payments will have a

n effective rate that is smaller than 6%.b. The present value of a 3-year, $150 ordinary annuity will exceed the present value of a 3-year, $150 annuity due.c. If a loan has a nominal annual rate of 7%, then the effective rate will never be less than 7%.d. If a loan or investment has annual payments, then the effective, periodic, and nominal rates of interest will all be different.e. The proportion of the payment that goes toward interest on a fully amortized loan increases over time.
Business
1 answer:
andreyandreev [35.5K]3 years ago
3 0

Answer:

c. If a loan has a nominal annual rate of 7%, then the effective rate will never be less than 7%

<em>CORRECT</em>

as at least is recive 7% of the investment. If payment are made in shorter period (semiannually, quarterly, etc)

Then the effective rate will be higher, not lower.

Explanation:

a. An investment that has a nominal rate of 6% with semiannual payments will have an effective rate that is smaller than 6%

FALSE the effective rate will be higher as there is compounding effect.

b. The present value of a 3-year, $150 ordinary annuity will exceed the present value of a 3-year, $150 annuity due

FALSE the annuity-due is discounted for one period less, as the payment are made at the beginning of the period therefore; his V is greater.

d. If a loan or investment has annual payments, then the effective, periodic, and nominal rates of interest will all be different

FALSE if it mades annual payments they will be equal

e. The proportion of the payment that goes toward interest on a fully amortized loan increases over time.

FALSE the interest will decrease over time as there is a portion of principal which is being paid each installment

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B. Family members

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A traditional economy is based upon the customs, beliefs, and history of the community. Age-old traditions and beliefs guide economic decisions of production and distribution. The traditional economy is motivated by the social well being of its members and not by profits.

The main economic activities under the traditional economy revolves are subsistence farming, fishing, and hunting. These activities are carried out in family settings. In other words, family members provide labor for economic activities.

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Project management is ideally suited for a business environment requiring all of the following EXCEPT:________.
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2 years ago
Journalize the following transactions for Powell Company using the gross method of accounting for sales discounts. Assume a perp
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Answer:

Jan 7

Dr Cost of Good Sold     7,860

Cr Inventory                    7,860

(to record the cost of good sold)

Dr Account Receivable          13,100

Cr Revenue                            13,100

( to record revenue and receivable owed from Stewart)

Jan 13

Dr Sales Returns                  2,620

Cr Account Receivable       2,620

(to record sales return from Stewart)

Dr Inventory                      2,620

Cr Cost of good sold       2,620

(to record inventory returns and decrease in cost of good sold due to sales return from Stewart)

Jan 18

Dr Cash                                10,480

Cr Account Receivable      10,480

( to record full collection from Stewart after 11 days)

* further working note on Jan 18 transaction: As Stewart had return $2,620 sales; the Receivable from Stewart is just $10,480 ( 13,100 - 2,620). Also, the term of receivable is 5/10, n/30; the repayment after 10 days received from Steward is not eligible for discount.

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3 0
3 years ago
an amount of 16000 is borrowed for 8 years at 3% interest, compounded annually. if the loan is paid in full at the end of that p
bezimeni [28]

He must pay back 20268.32 of amount after borrowing 16000 for 8 years at the interest rate of  3% for one year.

<h3>How to calculate loan amount ?</h3>
  • The term "Loan Amount" refers to the sum of money we currently owe you for this mortgage. The loan amount may also include other fees, interest , defaulted payments, interest on defaulted payments, principal, and interest on unpaid principal.
  • The amount of interest due each period expressed as a percentage of the amount lent, deposited, or borrowed is known as an interest rate. The total interest on a loaned or borrowed sum is determined by the principal amount.

Amount he borrowed = 16000

No. of years = 8 years

Rate of interest = 3%

Calculate full amount (A) :

Equation for A = P(1 + r/n)^(nt)

A =  16000(1 + .03)^8

A = 20268.32

He need to pay 20268.32 after 8 years.

To learn more about Loan amount refer :

brainly.com/question/26011426

#SPJ4

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10 months ago
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