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shtirl [24]
3 years ago
6

A company borrowed $40,000 cash from the bank and signed a 6-year note at 7% annual interest. The present value of an annuity fa

ctor for 6 years at 7% is 4.7665. The present value of a single sum factor for 6 years at 7% is 0.6663. The annual payments equal: Multiple Choice $26,652.00. $8,391.90. $40,000.00. $60,033.02. $190,660.00.
Business
1 answer:
Nat2105 [25]3 years ago
5 0

Answer: $8,391.90

Explanation:

So the company borrowed $40,000 from a bank.

They are to pay 7% interest on the note per year for 6 years.

We are to find the annual payments.

7% represents a constant payment schedule per year so we can use an Annuity formula.

Seeing as the Annuity factor has been calculated for us already we don't need to formula though.

The present value of an annuity factor for 6 years at 7% is 4.7665.

Calculating the present value of the annual payment can be done as follows,

= Amount / PVIFA (Present Value Interest Factor for an Annuity)

= 40,000/4.7665

= 8391.90181475

= $8,391.90

The annual payments equal $8,391.90.

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Answer:

The largest revenue the supplier can make under this deal is $24,151.2

Explanation:

Working file has been attached to help understand how the answer was derived. Some points to note in the sheet are:

  1. The sheet represents the following columns which are S. No., Chairs, Price, Total Revenue and difference in each revenue.
  2. As the no. of chairs rises the price is dropping by $0.2 in the entire order.
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Which best describes the difference between sole proprietorships and partnerships?
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After a prolonged period of high inflation the government of Atlantia decides to set a target of 0% inflation going forward. As
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The best support against a 0% inflation target given by the economic literature is c. A 0% inflation target could lead to deflation.

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When deflation happens, the economy will experience hardships with lower production levels that will impact other sectors of the economy.

Options for this question include:

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