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Leno4ka [110]
2 years ago
6

Loan A has the same original principal, interest rate, and payment amount as Loan B. However, Loan A is structured as an annuity

due, while Loan B is structured as an ordinary annuity. The present value of Loan A will be
Business
1 answer:
7nadin3 [17]2 years ago
8 0

Answer:

Earlier than Loan B

Explanation:

In an annuity due, an occurring payment is made at the beginning of consecutive period.  (such as  rent  that is paid at the beginning of each months)

In ordinary annuity, an occurring payment is made at the the end of the consecutive period. (such as rent that is paid at the end of the year)

Since the payment of annuity due always received earlier by the creditor than ordinary annuity, the present value of loan A will always change Earlier than Loan B.

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You purchased shares of a mutual fund at a price of $20 per share at the beginning of the year and paid a front-end load of 5.75
valkas [14]

Answer:

3.44%

Explanation:

The computation of the return if sold the fund at the year end is shown below:

= {[Price × (1 - Front End Load) × ((1 + fund increase percentage) -expense ratio)] - price} ÷ price

={[$20 per share × (1 - 5.75%) × ((1 + 11%) - 1.25%)] - 20} ÷ 20

= 3.44%

We simply applied the above formula so that the correct return could come

6 0
2 years ago
How does the way that a search engine gets and organizes information help you understand why Googling alone is not enough?
bixtya [17]

Answer:

The search engine works through three primary functions,

Crawling, Indexing and Ranking

Explanation:

Crawling is the process in which the server works as a spiders and finds out information relevant for the user. Indexing is the way to store the web page. Ranking is the priority through which websites are displayed. The most matched text with the URLs are displayed first. The content in the website is matched with the relevance and then displayed to the user.

6 0
3 years ago
The market demand curve
Sidana [21]

Answer:

The answer is: A) is the sum of all individual demand curves.

Explanation:

By definition the market curve is the sum of all individual demand curves in a market. It shows the total quantity of goods that consumers demand (are willing and able to purchase) at varying price points. Usually the curve shows a downward slope since consumer demand decreases as the price of a good increases.

5 0
2 years ago
The risk-free rate of return is 8%, the expected rate of return on the market portfolio is 15%, and the stock of Xyrong Corporat
Reptile [31]

Answer:

A)

risk free rate = 8%

market rate = 15%

Xyrong's beta = 1.2

pays 40% of income in dividends

latest EPS = $10

ROE = 18%

k = 8% + (1.2 x 7%) = 16.4%

g = ROE x (1 - 40%) = 10.8%

div1 = [(40% x $10) x (1 + g)] = $4 x 1.108 = $4.432

stock price = $4.432 / (16.4% - 10.8%) = $79.14

B)

div0 = $4

div1 = $4.432

price0 = $103

price1 = $79.14 x (1 + g) = $79.14 x 1.108 = $87.69

holding period return = ($4.43 + $87.69 - $103) / $103] = -0.1056 or -10.56%

5 0
3 years ago
If the Fed lowers the federal funds​ rate, eventually the A. AD curve shifts​ rightward, increasing real GDP and raising the pri
GenaCL600 [577]

Answer:

A. AD curve shifts​ rightward, increasing real GDP and raising the price level.

Explanation:

Federal funds rate can be defined as the interest rates bank charge other banks on loans of reserves and it is a monetary policy instrument.

If the Fed lowers the federal funds rate, eventually the Aggregate Demand (AD) curve shifts rightward, increasing real Gross Domestic Products (GDP) and raising the price level.

However, raising the federal funds rate, eventually causes the

Aggregate Demand (AD) curve to shift leftward and real Gross Domestic Products (GDP) decreases.

8 0
3 years ago
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