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fredd [130]
3 years ago
13

Now, assume that Abigail’s friend volunteers to pay compound interest instead of simple interest for her loan. If interest is ac

crued at 8.2% compounded annually, all other things being equal, how much money will Abigail’s friend owe her in 13 years?
Business
1 answer:
aliya0001 [1]3 years ago
3 0

Answer:

$4178.752

Explanation:

In the given question some information is missing i.e " Principal ".The correct value is $1500

Given:

Principal(P) = $1,500

Interest rate (r) = 8.2% = 8.2 / 100 = 0.082

Number of years (n) = 13 years

Amount = ?

Calculation:

Amount = P(1+i)^{n}\\Amount = 1,500(1+0.082)^{13}\\=1,500(1.082)^{13}\\=1,500(2.78582858)\\=4,178.752

Therefore, total amount paid = $4178.752

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Ajax Inc. is one of the customers of a well-known linen manufacturing company. Ajax has not ordered linen in some time, but when
Aleksandr-060686 [28]

Answer:

511

Explanation:

RFM analysis - recency, frequency, monetary

RFM analysis is used to analyze and rank customers according to their purchassing patterns.

RFM (recency, frequency, monetary) analysis is a behavior based technique used to segment customers by examining their transaction history such as

  • how recently a customer has purchased (recency)
  • how often they purchase (frequency)
  • how much the customer spends (monetary)

It is based on the marketing axiom that 80% of your business comes from 20% of your customers.

RFM helps to identify customers who are more likely to respond to promotions by segmenting them into various categories

<u>Solution:</u>

Ajax Inc. is one of the customers of a well-known linen manufacturing company. Ajax has not ordered linen in some time, but when it did order in the past it ordered frequently, and its orders were of the highest monetary value. Under the given circumstances, Ajax's RFM score is most likely <u>511</u>.

8 0
3 years ago
If the demand curve is linear and downward sloping, which of the following statements is not correct? Select one: a. Starting fr
PilotLPTM [1.2K]

Answer:

The correct answer is option d.

Explanation:

If a demand curve is linear and downward sloping, different points on the line can show different values of slope. The value of slope will be equal to the ratio of change in price to change in quantity demanded. The value of slope will be the same throughout the line.

The price elasticity is the ratio of change in quantity to change in price. The price elasticity can be different for different points on the demand curve.

The points on the lower parts are more inelastic while the points on the upper portion are more elastic. The midpoint represents unit price elasticity.

Since the upper portion is more price elastic, an increase in price will cause a more than proportionate decrease in the quantity demanded. This will cause the total revenue to decrease.

3 0
3 years ago
1. Given the nominal interest rate of 17​% and the expected inflation of 13​%, then the value of the real interest rate is ___ ?
Veronika [31]

Answer:

According to fisher equation

(1+nominal Interest rate)=(1+real interest rate)(1+inflation)

1) So 1.17=(1+R)(1.13)

1+R=1.17/1.13

R=1.035-1

R=0.0353

Real interest rate = 3.53 percent

2) (1+NIR)= 1.03*1.04

  1+ NIR= 1.072

NIR= 0.072

Nominal interest rate = 7.2 percent

A lender prefers a higher real interest rate as he will earn more money on the amount he has lend if the real interest rate is higher.

A borrower will prefer a lower real interest rate as he will have to pay lower interest payments on an amount if the real interest rate is lower.

Explanation:

6 0
3 years ago
It is reported that an annuity-immediate with $100 annual payments for s years has an accumulated value of $933.52 at the time o
Gre4nikov [31]

Answer:

Check the explanation

Explanation:

The Expressed accumulated value<em><u> (which is the overall sum an investment holds at present, which also includes the capital that was invested and the gain it has received to date. The accumulated value can also be referred to as an cash value.)</u></em> of this third annuity at the time of its last payment can be seen in the attached image below:

8 0
3 years ago
Production and sales estimates for march for the robin co. are as follows: estimated inventory (units), march 1 18,000 desired i
zmey [24]
The correct answer is a
3 0
3 years ago
Read 2 more answers
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