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3 years ago

Which of the following statements is true?

Business

1 answer:

netineya [11]3 years ago

4 0

Answer:

d. The present value of perpetuity varies directly with the annual repayments.

Explanation:

A perpetuity is a security or bond which pays a fixed amount of cash flow at a fixed interval forever. So the amount it pays stays the same and it keeps paying for ever. The formula to find the present value of a perpetuity is

Cash flow of perpetuity/Interest Rate

So if the annual payment is 100 and the interest rate is 5% the present value of the annuity is

100/0.05=2,000

If we keep the interest rate the same at 5% and increase the cash flow by 100 to 200 the new present value of the perpetuity is

200/0.05=4,000

This proves that the present value of a perpetuity varies directly with the annual repayments or cash flow of perpetuity.

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Joshua borrowed $500 on January 1, 2017, and paid $25 in interest. The bank charged him a service charge of $15. He paid it all

Elena-2011 [213]

Answer: 8%

Explanation:

The Annual Percentage Rate or APR for short is calculated by dividing the finance cost by the total amount borrowed in the following manner,

APR = Finance Charge / Amount borrowed.

To calculate the Finance charge we add the interest and the service charge.

Finance charge = 25 + 15

= $40

Back to the APR formula we will have,

APR = Finance Charge / Amount borrowed

APR = 40/500

= 0.08

APR is 8%.

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3 years ago

An example of a cost is _____.

Vedmedyk [2.9K]

Profits is the answer

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Global Corp. wants to launch a new product. The determinant attributes for the product were identified, and the range for each s

Doss [256]

Answer: Trade off analysis

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In the given case, Global corp. were asking their consumers to prioritize the attributes they were expecting from the new product. The higher demanded attribute would have been added and the lower one will be neglected.

Hence from the above we can conclude that the correct answer is trade off.

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