Answer:
They should not be able to successfully negotiate the terms of this loan within these parameters.
Explanation:
It has been provided that RT earns 12% on his current investments and would not like to receive an interest rate of less than 12% on the loan he gives.
if RT gives a loan of $10,000 for one year, he would charge an interest rate of minimum 12%.
Interest = $10,000*0.12
= $1,200
RT requires $1,200 in interest.
It has been provided that Cynthia earns 8% on her investment.
If she borrows $10,000 and invests the amount for one year, she can earn 8% return on such amount.
Earning = $10,000*0.08
= $800
Cynthia is going to earn $800
RT requires a minimum of $1,200 as interest for 1-year loan he gives while Cynthia can pay a maximum of $10,000 as interest for 1-year loan she takes. there is mismatch between the minimum expectation to receive of lender and the maximum expectation to pay of borrower.
Therefore, They should not be able to successfully negotiate the terms of this loan within these parameters.
An important social trend is the continued concern for health and well-being in the United States is most likely evidenced by the introduction of fitness trackers such as the Fitbit.
<h3>What is social trend?</h3>
It should be noted that social trend simply means
the movement of a particular trend or its growth.
In this case, an important social trend is the continued concern for health and well-being in the United States is most likely evidenced by the introduction of fitness trackers such as the Fitbit
Learn more about social trend on:
brainly.com/question/2926894
#SPJ1
The project's projected NPV is $185.11. (second option)
<h3>What is the NPV?</h3>
Net present value is the present value of after-tax cash flows from an investment less the amount invested. Only projects with a positive NPV should be accepted.
A project with a negative NPV should not be chosen because it isn't profitable. NPV is calculated by taking the present value of all cash flows over the life of a project. Then, the present value of cash flows is subtracted from the investment's initial investment
NPV = -1200 + 400 / 1.0975 + 425 / 1.0975² + 450 / 1.0975³ + 475 / 1.0975^4
= $185.11
To learn more about net present value, please check: brainly.com/question/25748668
#SPJ1
Answer:
Pension expense $100,000
Explanation:
The computation of the pension expense for the year is shown below:
Service cost $112,000
Interest cost $64,800 ($810,000 × 8%)
Amortization of prior service cost $6,600
Amortization of net loss $2,600
Less: Expected return on plan assets -$86,000 ($860,000 × 10%)
Pension expense $100,000
Answer:
There are no pressures on price to either rise or fall.
Explanation:
Equilibrium price refers to the market price at which the amount of quantity supplied is exactly equal to the amount of quantity demanded. At this point, the market supply curve and the market demand curve intersect each other.
This price would be determined by the market forces such as demand and supply of the goods.
