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MAVERICK [17]
3 years ago
7

Greenfield, Inc. agrees to make lease payments of $220 at the end of each month for 48 months for the use of a machine. Assuming

a borrowing rate of 12%, the present value of the lease payments is:
Business
1 answer:
Anna35 [415]3 years ago
8 0

Answer:

The Present value of the lease payment is  $ 6,713.28

Explanation:

Given as :

The payment amount at the end of every months = $ 220

The total months = 48 months , i.e 4 years

The rate of compounded yearly = 12 %

Let The present principal value =  P

∵ $ 220 is the payment at the end of 48 months

∴ Total amount in 48 months = $ 220 × 48 = $ 10,560

Now , <u>from compounded method</u>

The Amount after 48 months = Present value × (1+\frac{\textrm Rate}{100})^{\textrm Time}

So , $ 10,560 = P × (1+\frac{\textrm 12}{100})^{\textrm 4}

Or,  $ 10,560 = P × (1.12)^{4}

So , $ 10,560 = P × 1.573

∴ P = \frac{10560}{1.573} = $ 6,713.28

Hence The Present value of the lease payment is  $ 6,713.28  Answer

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To reduce traffic, market town enacts an ordinance that permits only a few specific street vendors to function in certain areas. a court would likely review this ordinance under the principles equal protection.

<h3>What is principle equal protection?</h3>

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8 0
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In a closed​ economy, the values for​ GDP, consumption​ spending, investment​ spending, transfer​ payments, and taxes are as​ fo
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Answer: Option (C) is correct.

Explanation:

National Savings is divided into two parts, private savings and public savings.

Private Savings = GDP - Taxes + Transfer payments - Consumption Spending

                         = Y - T + TR - C

                         = 12 - 3 + 2 - 9

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Public Savings  = Taxes - Government Spending - Transfer payments

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