Answer:
b. Each monthly payment is greater than the amount of interest accruing each month.
Explanation:
Answer: Apple and Nike are utilizing <u><em>Taper integration</em></u> to partially rely on outside-market firms while supporting their forward vertical integration strategy.
Tapered integration is a key word that initiated from organization hypothesis, referring to a concoction of vertical integration and industrial transaction.
<u><em>The correct option is (d) </em></u>
First, we calculate the present value in year 5 of the annuity and then once again calculate the present value of this result to get the value today
Present value an annuity = P*(1-(1+r)^-n)/r
where P = 3200, r = 0.10 and n = 15 payments (from year 6 to year 20)
Present value of the annuity in year 5 = 3200*(1-(1+0.10)^-15/)0.10
Present value of the annuity in year 5 = 3200*(1-1.10^-15)/0.10
Present value of the annuity in year 5 = 24,339.45
Now with 24,339.45 as the FV , we calculate the present value today as
PV today = FV/(1+r)^n = 24339.45/1.10^5
PV today =15,112.89
Value today =$15,112.89
Due to thinking he's the best, Donald has a high level of: <u>N</u><u>arcissism</u>