very much indeed. thanks for the points
Answer:
the nominal annual interest rate on the payment plan is 15%
Explanation:
According to the question, a one-time payment for the speakers will cost $1,000
An installmental payment will have a $150 down payment and then another $100 fro ten subsequent months.
Calculating the total payment at tthe end of the payment plan will give
$150 + ($100 x 10months)
we have, $150 + $1,000 = $1,150.
This shows that at the end of the payment plan, the set of speakers would have cost $1,150 instead of $1,00 one-time payment.
Step 2:
To calculate the interest rate, we subtract the one-time price from the payment plan price and express it as a percentage of the one time price to get tthe interest rate.
$1,150-$1,000 = $150
then we have,
($150 ÷ $1,000) × 100%
= 0.15 × 100%
- 15%
The nominal annual interest rate is 15%.
Cheers.
Home raids, Car searches, Phone searches. Anything that the government or the authorities do not have a warrent to look through, they cannot lawfully look through it.
Answer:
$84.18
Explanation:
The current share price can be determined using the two-stage dividend growth model.
In the two-stage dividend growth model, the first stage is characterised by high growth rate. In the second stage, the high growth rate falls to a steady or normal growth rate
dividend in Y1 = 2.05 x 1.24 = 2.54
dividend in Y2 = 2.05 x 1.24^2 = 3.15
dividend in Y3 = 2.05 x 1.24^3 = 3.91
Y3 = (3.91 X 1.07) / (0.11 - 0.07) = 104.59
Find the present value of these cash flows
(2.54 / 1.11) + (3.15 / 1.11²) + (3.91 / 1.11³) + (104.59/1.11³) = 84.18