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fiasKO [112]
2 years ago
10

Melissa wants to buy a living room set that cost $1800. She could get a 3-year personal loan from a bank at a simple interest ra

te of 8.7%. She could also get a 3-year loan from a finance company that charges 8.5% compounded annually. Which answer correctly compares the total cost of the loan with simple interest and the loan with compound interest?
Business
1 answer:
skad [1K]2 years ago
7 0

Answer:

The total cost of the loan with simple interest $2269.8 is less than the loan with compound interest $2299.12.

Explanation:

Simple Interest (I) = Principal (Loan)×Time×Rate ÷ 100

Loan = $1800

Time = 3 years

Rate = 8.7%

I = 1800×3×8.7/100 = $469.8

Total cost of loan with simple Interest = loan + simple interest = $1800 + $469.8 = $2269.8

Compound interest = [Loan(1+r)^n] - Loan

Loan = $1800

r is annual interest rate = 8.5% = 0.085

n is duration of the loan = 3 years

Compound interest = [1800(1+0.085)^3] - 1800 = 2299.12 - 1800 = $499.12

Loan with compound interest = 1800 + 499.12 = $2299.12

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The labor force includes rev: 05_30_2018 Multiple Choice employed workers but excludes persons who are officially unemployed. pe
butalik [34]

Answer:

employed workers and persons who are officially unemployed

Explanation:

The labor force is the force that involves the labors who are employed and the unemployed i.e. officially

In an equation, it can be

Labor force = Employed workers + unemployed workers

It is a combination of both the employed and the unemployed workers

hence, the correct option is third

Therefore all the other options are wrong as they do not meet the criteria of the labor force

8 0
3 years ago
A project that costs $1,900 to install will provide annual cash flows of $500 for the next 5 years. The firm accepts projects wi
Doss [256]

Answer:

A. 3.8 YEARS

B YES

C $325.91

Explanation:

Payback period is the amount of time it takes to recover the amount invested in a project from its cumulative cash flows.

payback period = amount invested / cash flows

$1,900 / $500 = 3.8 years

the project should be accepted because the payback period is less than the maximum acceptable year

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

cash flow in year 0 = $-1900

cash flow each year from year 1 to 5 = $500

I = 4%

NPV = $325.91

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

6 0
3 years ago
6. Suppose that the returns on the stock fund presented in Spreadsheet 6.1 were 240%, 214%, 17%, and 33% in the four scenarios.
Basile [38]

Answer:

Explanation:

Base on the scenario been described in the question, stock variance refers to the volatility that arises from the average. Volatility shows the degree of risk that will be helpful in determining the level of risk an investor should take while purchasing a particular security.

5 0
3 years ago
Check out this cube: The figure presents a cube. The length of one edge is labeled as 4 units The figure presents a cube. The le
Olenka [21]

Answer:

The surface area of the cube is 96 squared unit.

Explanation:

The surface area of a cube is the addition of the area of each surfaces. The surface net of the cube illustrates that it has 6 squares of 4 unit length each.

So that,

 Area of a square = length × width

But, length = width

⇒ Area of a square  = (length)^{2}

                              = (4)^{2}

                              = 16

Area of one of the squares of the cube is 16 squared unit.

Surface area of the cube = number of squares × Area of one of the squares of the cube

                                          = 6 ×16

                                          = 96 squared unit

The surface area of the cube is 96 squared unit.

4 0
3 years ago
____________ include veterans’ payments, welfare, and social security payments..
zvonat [6]

Answer:

<u><em>Statement of Payments</em></u>

Explanation:

<em><u>Statement of Payments</u></em> include veterans’ payments, welfare, and social security payments..

<u><em>Social Security Benefits </em></u>are payments made to qualified retirees, disabled persons, to their spouses, children and survivors etc.

<u><em>A statement of payments</em></u> is  usually submitted with income tax return to receive the Senior Citizens'€™ Exemption.

7 0
3 years ago
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