Answer:
No, you should not purchase the equipment if your interest rate is 10% because you would spent more money on the equipment than what you would save in labor costs.
Explanation:
First, you have to calculate the total amount that you would save in 8 years which is the result of multiplying the amount you save per year for the number of years:
$35,000*8=$280,000
Second, you have to calculate the total amount you would have to pay to purchase the equipment if your interest rate is 10% using the following formula:
A= P(1+rt)
A= accrued amount
P= principal amount: $200,000
r= rate: 0.1
t= time period: 8
A= 200,000*(1+(0.1*8))
A= 200,000*1.8
A= 360.000
According to this, in 8 years you would save $280,000 in labor costs but you would have to pay $360,000 for the equipment which means that you will pay more for the machine than what you would save in costs. Because of this, you should not purchase the equipment if your interest rate is 10%.
The answer is A. direct loans, and C. work-study programs.
Answer:
D
Explanation:
thia will help her build credit
Answer:
2.5%
Explanation:
Please follow the below mentioned steps in order to calculate a bond's current yield.
Step 1: Calculate annual bond payment (par value × coupon rate).
Step 2: Divide result from step 1 with 2 in order to convert it into semi-annual terms.
Step 3: Then divide the result from step 2 upon current market price and convert into a percentage.
Solution from step 1 to 3:
- Annual bond payment = $1000 × 6%
<em>ABP = $60</em>
- Semi-annual bond payment = $60 ÷ 2
<em>SABP = $30</em>
- Bond's current yield = $30 ÷ $1200 × 100
<em>BCY = 2.5%</em>