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Bad White [126]
3 years ago
11

On this date last year, you borrowed $3,900. You have to repay the loan with a lump sum payment of $6,000 six years from now. Wh

at is the interest rate?
Business
1 answer:
Vlada [557]3 years ago
8 0

Answer:

Interest Rate=0.0635=6.35%

Explanation:

Given Data:

Money Borrowed last year=PV=$3,900

Future Payment as a lump sum payment=FV=$6,000

Total Number of years=n=7 years

Required:

Interest Rate=i=?

Solution:

Formula:

FV=PV(1+i)^n

In our case, FV=$6,000, PV=$3,900, n=7

i=(\frac{FV}{PV})^{1/n}-1\\i=(\frac{6000}{3900})^{1/7}-1\\ i=0.0635

Interest Rate=0.0635=6.35%

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Kurt, who is a divisional manager, continually brags that his division’s required return for its projects is 1 percent lower tha
Viefleur [7K]

Answer:

D. Kurt’s division is less risky than the other divisions.

Explanation:

Based on the information provided within the question it can be said that the most likely reason is that Kurt’s division is less risky than the other divisions. Just as the saying goes "the greater the risk, the greater the reward", the same goes for the opposite, the lower the risk that a division has to undertake the lower the percent for the required return.

3 0
3 years ago
Economic analysis is used only by policy makers to make policy decisions. only by business people to raise profits. only by inst
Free_Kalibri [48]

Answer:

The correct answer is: in all decision making.

Explanation:

Economic analysis is used in all walks of life, in decision making. It is not only relevant for policymaking or in business or for students. Rather, it is used in day to day life as well.  

Almost all the decision we make is based on cost-benefit analysis. It used by households and individuals for utility maximization. It is used by businesses for profit maximization and is used by policy makers for welfare maximization.

5 0
3 years ago
A course that costs $500 will allow you to get a job that pays $2 more per hour than your current job. How many hours will you n
torisob [31]

Answer:

250 hours.

Explanation:

Cost of course : $500

The extra income from the course is $2 per hour

to pay off the cost of the course requires earning $500 by working at a rate $2 per hour.

Number of hours required = $500/2

=250 hours.

7 0
2 years ago
Ambrin Corp. expects to receive $2,000 per year for 10 years and $3,500 per year for the next 10 years. What is the present valu
sineoko [7]

Answer:

A. $19,034

Explanation:

The computation of the present value for 20 years cash flow is shown below:

For the First 10 years

Given that

Payment for first 10 years = $2,000

Discount rate = 11%

Now the present value is

= $2000 ÷ 1.11 + $2,000 ÷ 1.11^2 +...........+ $2,000 ÷1.11^10

= 11,778.46402 ..............(1)

For the Next 10 years

Given that

Payment for next 10 years = 3,500

Discount rate = 11%

Now the present value is

= $3,500 ÷ 1.11 + $3,500 ÷ 1.11^2 +...........+ $3,500 ÷ 1.11^10

= 20,612.312

So, today present value is

= $20,612.312 ÷ 1.1110

= 7,259.339 ...........................(2)

Now

Total present value is

= $7,259.339 + $11,778.46402

= $19,034

3 0
3 years ago
Power Pumps produces a variety of commercial sump pumps. One of their models—Mighty Mo—is produced in a small plant in Missouri.
mojhsa [17]

Answer:

1000

Explanation:

The economic order quantity is given by the formula = Square root of [ (2 * D * S ) / (H) ]

D = Annual Demand = 2000*6=12000 numbers (six rotor for each pump)

S = Unit Order Cost = $ 250 / order

H = Inventory Holding Cost = 10% of Unit Cost = 10% of 60 = $ 6

The economic order quantity is given by the formula = Square root of [ (2 * D * S ) / (H) ]

Economic Order Quantiity = Squareroot of { (2 * 12000 * 250) / (6) }

Economic Order Quantiity = Squareroot of { 1,000,000 }

Economic Order Quantiity = 1000 numbers.

4 0
3 years ago
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