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frosja888 [35]
3 years ago
10

A certain loan program offers an interest rate of 7%, compounded continuously. Assuming no payments are made, how much would be

owed after two years on a loan of $2500? Do not round any intermediate computations, and round your answer to the nearest cent.
Business
1 answer:
vovikov84 [41]3 years ago
8 0

Answer:

The amount of loan after two years is $2875.68.

Explanation:

Given information:

Interest rate = 7%, compounded continuously.

Time = 2 years

Initial value of loan = $2500

The formula for amount after continuous compound interest is

A=Pe^{rt}

where,  P is principal,r is nominal rate per year, t is time in year.

Substitute P=2500, r=0.07, t=2 in the above formula.

A=2500e^{0.07\cdot 2}

A=2500e^{0.14}

A=2875.68449714

A\approx 2875.68

Therefore the amount of loan after two years is $2875.68.

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If your job at the company is to improve existing products, you are probably using the ________ strategy.
ryzh [129]

If your job at the company is to improve existing products, you are probably using the development strategy.

<h3>What is the development strategy?</h3>

This is the term that is used to do with the actions that would involve the research and the identification of the strategic options in the business. It has to help in such a way that it would provide the resources that would help in the achievement of objectives.

Hence we can say that If your job at the company is to improve existing products, you are probably using the development strategy.

Read more on development strategy here: brainly.com/question/27801561

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6 0
1 year ago
Treasury bills have a fixed face value (say, $1,000) and pay interest by selling at a discount. For example, if a one-year bill
Snezhnost [94]

Answer:

Please see attachment

Explanation:

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3 0
3 years ago
The market opportunities most relevant to a company are those that
Wewaii [24]

Answer:

are in their directly related field, they are going to have more market opportunities if they stick to their target market

Explanation:

3 0
3 years ago
If the reserve requirement is 20% and commercial bankers decide to hold additional excess reserves equal to 5% of any newly acqu
coldgirl [10]

Answer:

B) 4

Explanation:

the monetary multiplier before this newly acquired checkable deposit was 1 / required reserve ratio = 1 / 20% = 5. Since the banks decided to increase the reserve ration to 25%, then the money multiplier will decrease to 1 / 25% = 4.

The monetary multiplier shows the money creating effect of the fractional banking system. E.g. you deposit $1,000 at bank A. Bank A will lend $750 to Bill. Bill then purchases a bike from Tom and Tom deposits the $750 in bank B. Bank B will then lend $562.50 to Sarah. Sarah purchases a TV from Alex, and Alex deposits the money in bank C. Then bank C will lend $421 to Frank, and the cycle goes on.

8 0
3 years ago
You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equ
taurus [48]

Answer:

8.15 %

Explanation:

Weighted Average Cost of Capital (WACC) is the business Cost of permanent sources of finance pooled together. It shows the risk of the business and is used to evaluate projects.

WACC = Cost of Equity x Weight of Equity + Cost of Preferred Stock x Weight of Preferred Stock + Cost of Debt x Weight of Debt

<u>Remember to use the After tax cost of debt :</u>

After tax cost of debt = Interest x ( 1 - tax rate)

                                    = 6.50% x (1 - 0.40)

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therefore,

WACC = 11.25% x 55% + 6.00% x 10% +  3.90 % x 35%

            = 8.15 %

Thus,

Quigley's WACC is closest to 8.15 %.

3 0
3 years ago
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