<span>The interest rate can drastically change the total amount paid to the lender</span>
Answer: True
Explanation:
Groupware is a set of programs that makes it possible for people to work together on a common course even though they are at different locations from each other. In this way, they can work together remotely.
Computer programs that makes work collaboration to be possible real time are known as synchronous groupware.
Groupware provides computer-mediated communication systems, allowing different viewpoints and ideas to be compared and discussed in real time.
Answer:
t = 4.607742347 years rounded off to 4.61 years
Explanation:
To calculate the number of years it will take an investment of $3500 to grow to $5900 at an annual interest rate of 12%, we will use the formula for the future value of cash flows. The formula can be written as follows,
Future value = Present value * (1+i)^t
Where,
- i is the interest rate
- t is the time in years
Plugging in the values for future value, present value and i, we can calculate the t to be,
5900 = 3500 * (1+0.12)^t
5900 / 3500 = (1.12)^t
1.685714286 = 1.12^t
Taking log on both sides.
Ln(1.685714286) / Ln(1.12) = t
t = 4.607742347 years rounded off to 4.61 years
Answer:
A $155.94
Explanation:
A down payment is an initial payment that is paid cash to the buyer. It is the same as the deposit. Marcus must have been buying the compute of credit. The down payment or deposit shows that the customer is serious about buying the item.
The deposit that Marcus paid is 12%.
The cost of the new computer is $1,229.50
The deposit will be 12% of $1,229.50
=12/100 x $1,229.50
=0.12 x $ 1,229.50
=$155.94
Answer:
The market value of equity should be used.
Explanation:
Their are only two methods which are book value method or market value method. The market value method is preferred because the reason is that the market value gives the more accurate numerical value that the securities of the company will give which is the required rate of return to its investors. However historic cost data is not useful because the value of stock and bonds keeps changing every second in the stock exchange and their is the risk that the WACC calculated is inaccurate which implies that the project appraised is also incorrect.
So the best way to calculate the weighted cost of capital is that we should use the fair value of the securities.
