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inessss [21]
3 years ago
12

Sam Robinson borrowed $11,000 from a friend and promised to pay the loan in 10 equal annual installments beginning one year from

the date of the loan. Sam’s friend would like to be reimbursed for the time value of money at a 10% annual rate. What is the annual payment Sam must make to pay back his friend? (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)
Business
1 answer:
Y_Kistochka [10]3 years ago
4 0

Answer:

P = $1790.01

Explanation:

Given data:

Borrowed money = $11,000

Number of installment = 10

Annual rate of interest = 10%

11,000 = P(1.1)^1 + P(1.1)^2 + P(1.1)^3 + P(1.1)^4 + P(1.1)^5 + P(1.1)^6 + P(1.1)^7 + P(1.1)^8 + P(1.1)^9 + P(1.1)^10

\frac{11,000}{17.53} = P

P = $627.45

PV of annuity is given as:

PV of annuity = P*[\frac{(1-(1+r)^{-n})}{ r}]

P - Periodic payment

r - rate per period

n - number of periods

11,000 = P*[\frac{(1-(1+0.1)^{-10})}{0.1}]

P = $1790.01

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valkas [14]

Answer:

A share of Citigroup stock represents a claim on Citigroup's assets that gives the purchaser a share of the corporation.

Depending on whether you are an investor or the corporation, a bond is more or less riskier than a stock.

If you are an investor, buying a bond is safer than buying stock since in a worse case scenario where the company goes bankrupt, bond holders are paid before than stockholders. Also bonds provide fixed periodic payments (coupons) and a final payment of the face of the bond at maturity date.

If you are the corporation, issuing bonds is riskier than issuing stock since you have the obligation of making fixed periodic payments to bondholders (coupons) and must pay the face value at maturity date. On the other hand corporations don't have any legal obligation to pay dividends.

6 0
3 years ago
One of the claims of ______ is that prejudice stems from people's desire to maintain dominance and social hierarchies.
wariber [46]
A) face negotiation theory
6 0
4 years ago
Barbara is a producer in a monopoly industry. Her demand​ curve, total revenue​ curve, marginal revenue​ curve, and total cost c
maks197457 [2]

Answer:

D

Explanation:

Profit is Maximize when MR = MC

since MR=40 - 0.5Q

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Therefore:

40-0.5Q = 4

-0.5Q = 4 - 40

-0.5Q= -36

divide through by -0.5

Q = 72

since Q = 72

from Q = 160 - 4p

72 = 160 - 4P

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5 0
3 years ago
Welfare economics is the study of a. taxes and subsidies. b. how technology is best put to use in the production of goods and se
const2013 [10]

Answer:

The answer is b) how technology is best used in the production of goods and services

Explanation:

The concept of welfare economics is used in the context of the Economy and public finances. It is defined as the branch of the economy that tries to determine the conditions that are needed to reach the maximum of social welfare. For this, the conditions are established to maximize production with a given amount of resources and optimization of the distribution of goods and services, analyzing the policies pursued in the achievement of goals that are considered desirable from the point of view of well-being.

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3 years ago
A summary measure that is computed to describe a characteristic from only a sample of the population is called
Dmitriy789 [7]

Answer:

D. a statistic.

Explanation:

A statistic is a single quantity contained in or computed from a set of data. Unlike a parameter (a characteristic of a population) a statistic is a characteristic or measure of a sample.

A statistic is a characteristic of a sample. Generally, a statistic is used to estimate the value of a population parameter.

4 0
3 years ago
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