Answer:
5.61 years
Explanation:
Let the Present value be 'x'
Data provided in the question:
Future value = 
Inflation rate, i = 5% = 0.05
Now,
Using the compounding
let number of years be n
thus,
Future value = Present value × [ 1 - inflation rate ]ⁿ
= x × (1 - 0.05)ⁿ
or
0.75 = 0.95ⁿ
on taking log on both the sides
, we get
or
log(0.75) = n × log(0.95)
or
-0.125 = n × (-0.0223)
or
n = 5.61 years
or, n = 11.89 years
Answer:
The correct answer is letter "A": True.
Explanation:
Term loans are those where individuals or organizations request a certain amount of money from a financial institution with the promise the individual or institution will be in charge of a series of periodical payments (principal + interest) to cover the debt.
<em>Term loans are privately negotiated between borrowers and lenders, offering the advantage of speed because there is no need for filings with the Securities and Exchange Commission (SEC) or other regulatory entities to request them.</em>
Answer:
c. $500
Explanation:
A contract is an agreement by two or more parties to perform a.certain activity within a given time.
When contract are breached, the beneficiary has the right to gain back the amount promised.
If the beneficiary can get another option, the other party is obligated to pay the balance.
On this instance Nora had the chance to get a new job at $2,000 salary the balance is $2,500 - $2,000= $500. Since she rejected the job she is responsible for that loss.
However ABC is still liable to pay the balance of $500
Answer:
Price will increase by $277.58
Explanation:
Market rate of Interest of a zero coupon bond can be determined by following formula
Market Rate of Interest = [ ( F / P )^(1/30) ] - 1
4.25% = [ ( $5000 / P )^(1/30) ] - 1
0.0425 + 1 = ( $5000 / P )^1/30
( 1.0425 )^30 = (( $5000 / P )^1/30)^30
3.4856 = $5000 / P
P = $5,000 / 3.4856
P = $1,434.46
Now Calculate the change in Price
Change in price = $1,434.46 - $1,156.88 = $277.58
Price will increase by $277.58
Answer:
$22,500
Explanation:
The computation of the total cost saving is shown below:
= Cost saving × number of zippers needed
= $0.25 × 90,000 zippers
= $22,500
We simply multiply the cost saving with the needed zipper so that accurate amount can come
The cost saving would be
= Outside supplier price - transfer price
= $3.50 - $3.25
= $0.25
All other information which is given is not relevant. Hence, ignored it
