1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
scZoUnD [109]
3 years ago
11

A firm has borrowed $5,000,000 for 5 years at 10% per year compound interest (compounded yearly). The firm will make no payments

until the loan is due, when it will pay off the interest the interest and principal in one lump sum. What is the total payment?
Business
1 answer:
Marta_Voda [28]3 years ago
6 0

Answer:

The firm will pay $8,052,550 in lump sum after 5 years

Explanation:

A = P(1+r)^n

A= 5,000,000 * (1+0.10)^5

A= 5,000,000 * (1.10)^5

A= 5,000,000 * 1.61051

A= 8,052,550

Thus, the firm will pay $8,052,550 in lump sum after 5 years

You might be interested in
Anita is an entrepreneur who is interested in starting a hair salon. Anita consulted her friend Ali, who is a businessman, to ge
Varvara68 [4.7K]

ANSWER 1. Capital

EXPLANATION: Calculating capital is necessary for a business. It is the basic duty of an entrepreneur to calculate capital before starting any business to check the financial capacity of the entrepreneur. Calculating capital also helps to estimate if any outside finance is necessary to start the business.

ANSWER 2: Set of Services

EXPLANATION: Choosing and categorizing set of services is necessary before starting any business. This will help in acquiring expert and trained set of labors to carry out the work. The clients will also come to know of the services that are available in the business. Expert and trained set of labors are difficult to find in any market.

ANSWER 3: Total Cost of Ownership

EXPLANATION: Total cost of ownership is a financial estimate intended to help buyers and owners determine the direct and indirect costs of a product or system. Each and every piece of equipment that Anita buys is added to the cost of the ownership of the business.

4 0
3 years ago
Read 2 more answers
Create a flow chart that shows the hierarchy of the US Banking Systems.
Aleksandr-060686 [28]

Answer:

NOOB

Explanation:

3 0
3 years ago
Which of the following expresses the value of a levered firm (VL) in the Static Tradeoff model of optimal capital structure [Not
Brut [27]

Answer:

C. VL = VU + PV(Tax Shield) - PV(CFD)

Explanation:

The static trade off theory is a theory of capital structure in corporate finance, first proposed by Alan Kraus and Robert H. Litzenberger. The theory emphasizes the trade-offs between the tax benefits of increasing leverage and the cost of bankruptcy associated with higher leverage. The <u>answer is C</u> as we know relative to the unleveraged firm, leverage provides both costs and benefits. The benefits are the tax shields provided by debt.

7 0
4 years ago
Which of the following gives suggestions for new product and also help to market new product.
Vlad1618 [11]

Answer:

A

Explanation:

8 0
3 years ago
Read 2 more answers
This year Randy paid $29,050 of interest on his residence. (Randy borrowed $464,000 to buy his residence, and it is currently wo
Luden [163]

Answer:

the last part of the question is missing, so I looked for it:

a. Randy received $2,200 of interest this year and no other investment income or expenses. His AGI is $75,000.

b. Randy had no investment income this year, and his AGI is $75,000.

a) Randy can deduct $31,575:

  • the mortgage interest is deductible
  • the car loan interest is not deductible
  • he can deduct $4,725 - $2,200 = $2,525 as investment interest expense

b) Randy can deduct $29,050

  • the mortgage interest is deductible
  • the car loan interest is not deductible
  • since he had no investment revenue, he cannot deduct any investment interest expense

5 0
3 years ago
Other questions:
  • John is a Community Association Manager. Which best describes his education? some college, associates degree, or bachelor’s degr
    10·2 answers
  • Alpha Products maintains a capital structure of 40 percent debt and 60 percent common equity. To finance its capital budget for
    14·1 answer
  • What feedback would you give concerning the sourcing of this information? *
    6·1 answer
  • I WILL MARK THE BRAINLIEST
    6·1 answer
  • A pharmaceutical company headquartered in a country constructs a research lab in another country in order to make the best use o
    15·1 answer
  • Milne Technology sells 15,000 units each quarter. Its current selling price is $25 per unit and the contribution margin ratio is
    13·1 answer
  • Use two correctly labeled side-by-side graphs of the loanable funds market in the United States and China to show how a higher i
    12·1 answer
  • Which of the following is a standard term that describes the audience of retail
    9·1 answer
  • Tierney Company begins operations on April 1. Information from job cost sheets shows the following.
    12·1 answer
  • What is the best definition of technology?
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!