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xeze [42]
2 years ago
14

You have two options to repay a loan. You can repay $6,000 now and $5,940 in one year; or you can repay $12,000 in 6 months. Fin

d the annual effective interest rate(s) i at which both options have the same present value.
Business
1 answer:
Brums [2.3K]2 years ago
7 0

Answer:

We will consider positive interest rate which is i=0.21 or i=21%

Explanation:

The formula for Future value is:

FV=PV(1+i)^n

The present value will become:

PV=FV(1+i)^{-n}

where:

n is the number of years

Since the condition is same present value,so the given data form the equation:

6000+5940(1+i)^{-1}=12000(1+i)^{-1/2}

Divide above equation by (1+i)^{-1}

6000(1+i)+5940=12000(1+i)^{1/2}

Let z=(1+i)^{1/2}\\. Above equation will become:

6000z^2+5940=12000z

Rearranging above equation:

5940-12000z+6000z^2=0

Solving the quadratic equation:

z=1.1,    z=0.9

Let z=(1+i)^{1/2}\\ will become:

z=(1+i)^{1/2}\\\\z^2=1+i

i=z^2-1

For z=1.1

i=(1.1)^2-1\\i=0.21

For z=0.9

i=(0.9)^2-1\\i=-0.19

we will consider positive interest rate which is i=0.21 or i=21%

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Phoenix [80]

Based on the Hockey Stick of Human Prosperity, two changes to economies include:

  • Reduction in child mortality.
  • Increase in life expectancy.

<h3>What is the Hockey Stick of Human Prosperity?</h3>
  • Refers to the fact that since the industrial age, humans have become richer and more prosperous.
  • This is in contrast to the time before the industrial age where most people were poor and suffered from diseases.

As a result of the rise in human prosperity, there is less child mortality than before, and people can now live to be significantly older than they used to in the past.

In conclusion, humans are more prosperous now.

Find out more about the Industrial Age at brainly.com/question/13323062.

3 0
2 years ago
_________ is a management blueprint for developing a product or service to customers that will generate revenue.
kolbaska11 [484]

The commercial enterprise model is a control blueprint for growing services or products for clients so one can generate revenue.

An IT blueprint is a planning device or document that a records generation corporation creates with a view to guiding its priorities, tasks, budgets, staffing, and other IT approach-related initiatives.

By using definition, a blueprint is a drawing up of a plan or model. The blueprint attitude allows you to look at all of the portions needed to collect your commercial enterprise before you begin. one of the maximum hard parts of being an entrepreneur is feeling confident in making choices about strategy and direction.

A blueprint is a -dimensional set of drawings that offers a detailed visual representation of the way an architect wants construction to appear. Blueprints normally specify a construction's dimensions, production materials, and the exact placement of all its additives.

Learn more about blueprint here: brainly.com/question/11555839

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5 0
1 year ago
1) The Johnson Manufacturing Co. has an annual operating budget of $750,000. Each year it budgets for the following expenses: po
nevsk [136]

Answer:

See below

Explanation:

The percentage allocated to each socially responsible action

1. pollution control

Pollution control has been allocated is $37,000

As a percentage

= $37,000/$750,000 x 100

=0.0493333 x 100

=4.933%

2. Community project

community project has been allocated $22,500

As a percentage

= 22,500/750,000 x 100

=0.03 x 100

=3%

3. Employee fitness

The amount allocated to employee fitness is $7500

As a percentage

=$7500/$750,000 x 100

=0/01 x 100

=1%

4. The total amount spent is

=, $37,000 +$22,500 +$7,500.

=$67,000

7 0
2 years ago
The executives for New Haus LLC set the retail objective for the company. These objectives are broken down in order to create th
yaroslaw [1]

Answer:

Top-down planning

Explanation:

Top-down planning  -

It refers to the method planning , where the goals are bifurcated and placed according to the hierarchy from top to bottom , is referred to as top - down planning .

As breaking and arranging the goals , make the process to accomplish the goals in a better manner .

The process require the movement from higher level to lower level , in a very orderly manner to hasten the process .

Hence , from the given scenario of the question ,

The correct answer is Top-down planning .

4 0
3 years ago
A car dealer advertises a rock-bottom price for a sports utility vehicle that usually goes for $1,000 or more. When you get to t
maria [59]

Answer:

b. bait pricing

Explanation:

Bait pricing strategy is one that is aimed at attracting customers by presenting a price that is lower than the actual value of a product. Usually the product is limited in quantity and when buyers come in they are convinced to buy something else.

This is considered an illegal means of marketing.

I'm the given instance when the customer got to the dealership the salesperson can't find that particular car on the lot, saying maybe it was sold this morning before he got in. The salesperson offers a higher-priced car.

This is bait pricing strategy.

3 0
3 years ago
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