Answer:
Amortizing loan.
Explanation:
Amortizing loan is the type where the principal and interest are paid in equal amounts till the loan is fully paid.
Usually payments are represented in an amortizing schedule. The payments are made up of part of the principal and the other part the interest paid together.
Jeff's loan of $275 monthly payments for 5 years is a form of amortizing loan.
Answer:
False
Explanation:
The invisible hand is a concept which was presented by Adam Smith in 1759. According to the concept, market forces were referred to as the invisible hand, which helps to move the free market economy. The market forces interact with each other to bring the market back to equilibrium. The general idea was these invisible forces can bring the market back to equilibrium without government intervention.
Answer:
A) state regulations are not always consistent.
Explanation:
The only consistent regulations in the country are those imposed by the federal government since they apply to the whole country. Many times state regulations are not consistent with federal standards or regulations. Something that might be considered OK in certain states may not be considered proper in other states.
Answer:
Real rate of return= 0.048 = 4.8%
Explanation:
Giving the following information:
Nominal rate of return= 11.7%
Inflation rate= 6.9%
<u>To calculate the real rate of return, we need to use the following formula:</u>
Real rate of return= nominal rate of return - inflation rate
Real rate of return= 0.117 - 0.069
Real rate of return= 0.048 = 4.8%
The inflation rate decreases the real value of money through time.
Answer:
a. project A; because its NPV is about $335 more than the NPV of project B.
Explanation:
As in the question it is mentioned that the required rate of return for project A and project B is 11.25% and 10.75% respectively.
Here we have to determined the net present value for both projects having different required rate of return
So based on the net present value the first option is correct as the project A is more than the project B
Therefore the first option should be accepted