Answer:
$6,655,000
Explanation:
wherein, A= Amount
P= Principal
R= Rate of interest per annum
n = term to maturity
Pay off amount at the end of year 3 = $5,000,000
Amount = $5,000,000 × 1.331 = $ 6,655,000
Amount due of a borrowing is equal to the money borrowed initially compounded at a rate of interest for a known period.
Above. rate of interest is 10%, since the money has been repaid only upon due date, three year compounding of the said sum at 10% per annum rate of interest yields the payoff amount which is $6,655,000
Answer:
a decrease in the effectiveness of assets in producing sales by a favorable trend in using assets to generate sales.
Explanation:
Assets turnover ratio =
Therefore when the ratio increases it means the level of sales has increased, with a higher rate than earlier.
Now also with this it reflects that the effectiveness of assets in producing sales as by a favorable trend, as higher the ratio more favorable it is, as depicts higher sales.