Consumer demand for personal computers or smart devices ultimately determines the demand for the parts and materials involved in
1 answer:
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Answer: 6%
Explanation:
The annual payments can be considered to be annuity payments as they are constant. The amount borrowed can be considered the present value of the annuity.
Present value of annuity = Annuity * Present value interest factor of annuity, 8 years, %?
178,960 = 28,819 * Annuity factor
Annuity factor = 178,960 / 28,819
= 6.20979
To find out the interest rate, look at the Present Value of Annuity table and go to the 8 period column. Look for 6.20979. The interest rate that intersects with this factor is the interest rate implicit in this agreement.
That rate is 6%.
Answer:
$200,000 ; $234,120.81 ; and $185,279.83
Explanation:
For computing the issue price we need to applied the future value which is shown in the attachment below:
a. Given that,
Future value = $200,000
Rate of interest = 10% ÷ 2 = 5%
NPER = 5 years × 2 = 10 years
PMT = $200,000 × 10% ÷ 2 = $10,000
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, applying the formula the issued price is $200,000
b. Given that,
Future value = $200,000
Rate of interest = 6% ÷ 2 = 3%
NPER = 5 years × 2 = 10 years
PMT = $200,000 × 10% ÷ 2 = $10,000
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, applying the formula the issued price is $234,120.81
c. Given that,
Future value = $200,000
Rate of interest = 12% ÷ 2 = 6%
NPER = 5 years × 2 = 10 years
PMT = $200,000 × 10% ÷ 2 = $10,000
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, applying the formula the issued price is $185,279.83
