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balandron [24]
2 years ago
5

bob and barbara are friends. bob takes out a $10000 loan and agrees to repay it over 12 years making annual level payments at an

effective rate of 5.62499%. at the same time barbara takes out a $10000 loan and agrees to repay it by making annual interest payments at an annual effective interest rate of i. she also agrees to make annual level deposits into a sinking fund that earns 4% annual effective interest so as to accumulate $10,000 at the end of the 12 years. bob and barbara discover they have the same total annual expenditures resulting from their loans. find the rate i.
Business
1 answer:
mamaluj [8]2 years ago
8 0

Answer:

5.0285%

Explanation:

Bob's annual payment is $1,168.37 (using a financial calculator)

Barbara's annual interest payment = $1,168.37 - annuity that will have a future value of $10,000 in 12 years

future value of annuity = payment x [(1 + r)ⁿ - 1] / r

  • r = 4%
  • future value = $10,000
  • n = 12

$10,000 = payment x [(1 + 0.04)¹² - 1] / 0.04

$10,000 = payment x 15.0258

payment = $10,000 / 15.0258

payment = $665.52

Barbara's annual interest payment = $1,168.37 - $665.52 = $502.85

Barbara's effective interest rate i = $502.85 / $10,000 = 5.0285%

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Which term refers to a system of rules and procedures designed to ensure the accuracy and reliability of financial and accountin
patriot [66]

Answer:

Internal controls is the correct answer.

Explanation:

6 0
3 years ago
Suppose you are 45 and have a $50,000 face amount, 15-year, limited-payment, participating policy (dividends will be used to bui
taurus [48]

Answer:

The Net cost of insurance $13,129.

Explanation:

Annual premium (15 years) $15,000 ($1,000 × 15 years)

Time value of money

$1,000 × 25.129 = $25,129 (Exhibit 1-B, 15 years, 7%)

+$10,129 ($25,129 - 15,000)

Total cost of policy $25,129 ($15,000 + 10,129)

Cash value (end of 15 years) -$12,000

Net cost of insurance $13,129 ($25,129 - 12,000)

At a 7 percent annual yield, your account would have accumulated to $25,129 in 15 years. You have paid $13,129 for 15 years of insurance protection.

8 0
2 years ago
Read 2 more answers
Describe how surveillance of our telephones has changed over the years. explain what is different about how silicon valley compa
katrin2010 [14]

Answer:

All communication way back used to be wiretapped, but now companies have been able to encrypt their data for protection of their information against wiretapping.

Companies like silicon valley has taken the bold step in securing their data from been hacked.

The back door is risky because if a person or people exposes their information to others, their information will be at risk because of hackers who might exploit their privacy or sensitive documents.

Finally, the idea of devices to be wiretapped is not a good idea, because most people want heir privacy, for this it is termed illegal to access one's privacy without the authorization from the person.

Explanation:

Solution

Before now all communication used to be wiretapped. presently, companies are encrypting data , for the purpose of this data to not be easily wiretapped.

Silicon valley companies have secured their devices through encryption unlike other companies. what this implies is that it will be tough for police to arrest criminals, but the normal or average people will have capacity to communicate or interact much better.

The back door method is risky because, presently in today's world there are people that are specialist in hacking, so if no backdoor exist, then there will be no room for anyone to hack into someone's phone.

It is considered a risk if your phone is exposed to others to easily access your private information.

I don't like the idea for devices should be wiretapped, this is because people need their privacy, they can't have that when their phones are wiretapped.

In general it is illegal and not right.

6 0
3 years ago
g Suppose that a pizza store sells pizza and French fries, and their opportunity costs are constant. Assume now that one of the
Tasya [4]

Answer:

A) Decreases , or D) Can increase or decrease (need more information)

Explanation:

Opportunity Cost is the cost of next best alternative foregone, while choosing an alternative.

Here, Opportunity cost of french fries - is the units of pizza sacrifised while making a unit french fries.

When oven broke, pizza that can be produced decrease.

  • If oven break effects (negatively) only pizza, & french fries production capacity stays same ie constant - opportunity cost of french fries {ie pizza sacrifised} decreases
  • If oven break effects pizza & french fries production capacity both - then opportunity cost of french fries changes (increase or decrease) based on their quantities' relative fall.
4 0
3 years ago
If an auditor is expected to detect the overstatement of sales, what should the auditor trace transactions from?.
-Dominant- [34]

If an auditor is asked to observe the overstatement of sales, the auditor trace transactions from The cash receipts diary should be linked to the sales journal.

<h3>How would an auditor detect the overstatement of sales?</h3>

The auditor detect the overstatement of sales are given below-

  • Observe a sample of transfers from the sales journal to the central ledger's sales account.
  • Approve a sample of sales from the sales diary to the shipment papers.

Thus, The cash receipts diary should be linked to the sales journal.

For more information about overstatement of sales, click here:

brainly.com/question/4606877

#SPJ1

7 0
2 years ago
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