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scoundrel [369]
3 years ago
5

You have agreed to loan some money to a friend at a simple interest rate of 150% which is outrageous but still about half of the

payday loan places! To make it easy on your friend who never took Math 140 you tell him you'll give him some money now and he just needs to pay you back a nice even $500 in 4 weeks. How much money do you hand him?
Business
1 answer:
Cerrena [4.2K]3 years ago
8 0

Answer:

We give our friend 437.5 dollars

Explanation:

We have to discount from 500 dollar the interest over time, as the 500 is the value our friend will return in 4 weeks ( a month) not the amount received Hence:

nominal x discount rate x time = discount

being rate and time in the same metric

rate is annual so we express time in portion of a year

500 x -1.5 x 1/12 = -62,5‬

We have to discount 62.5 dollar from the nominal

nominal less discount = present value

500 - 62.5 = 437.5

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Ne4ueva [31]
To answer the question above as to which type of life insurance policy combines term insurance and investment elements is letter C, Universal Life. Universal Life or in other term Permanent life Insurance is a type of insurance to which is flexible low-cost protection and term life insurance as well as the saving elements like the whole life insurance.
6 0
3 years ago
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An investor enters into a short oil futures contract when the futures price is $15.5 per barrel. The contract size of 100 barrel
Nikolay [14]

Answer:

$150

Explanation:

Calculation to determine How much does the investor gain or lose if the oil price at the end of the contract equals $14.0

Using this formula

Gain or Loss =(Futures price- Ending contract)*Contract size

Let plug in the formula

Gain or Loss=$15.5 per barrel- $14.0* 100 barrels

Gain or Loss=$1.5*100

Gain or Loss=$150

Therefore How much does the investor gain or lose if the oil price at the end of the contract equals $14.0 will be $150

3 0
3 years ago
PLEASE HELP FAST!!! What is the MOST likely reason that lottery winners often end up with serious financial problems?
zhuklara [117]

Answer:

taxes and no money management

Explanation:

some comes out of taxes and you do not know what to do with so much money

5 0
2 years ago
A company uses the departmental overhead rate method. Total overhead costs are $5,000,000. Of this total, the machining departme
AleksAgata [21]

Answer:

Allocation rate Machining= $50 per machine hour

Explanation:

Giving the following information:

Estimated Machining cost= $4,000,000

Estimated Number of machine hours= 80,000

<u>To calculate the allocation rate for the Machining department, we need to use the following formula:</u>

Allocation rate Machining= total estimated costs for the period/ total amount of allocation base

Allocation rate Machining= 4,000,000 / 80,000

Allocation rate Machining= $50 per machine hour

4 0
3 years ago
A firm has an issue of preferred stock outstanding that has a stated annual dividend of $4. The required return on the preferred
snow_lady [41]

Answer:

$64

Explanation:

A firm has an annual dividend of $4

The required return is 16%

Therefore the value of the preferred stock can be calculated as follows

= 16/100 × 4

= 0.16 × 4

= 0.64 ×100

= $64

Hence the value of the preferred stock is $64

4 0
2 years ago
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