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balandron [24]
3 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]3 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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Answer:

Always and less

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Without preparing the strategy no one could accomplish their target.

For frequency and magnitude of other bargainer concessions, the strategy should always be reciprocatinvg and found to be more effectove as if concessions are obtained from other bargainer that involves less reciprocation

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3 years ago
Each of the following situations is independent. Work out your own solution to each situation, and then check it against the sol
saw5 [17]

Morgan will get $1600 with the process of simple interest.

<h3>what is simple interest?</h3>

Simple interest is calculated based on a loan's principal or the initial deposit into a savings account. Simple interest doesn't compound, therefore a creditor will only charge interest on the principal sum, and a borrower will never be required to pay further interest on the interest that has already accrued.

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Time = 5 years

Simple interest

=\frac{1000 \times 5 \times 12}{100}\\=600

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To learn more about simple interest from the given link

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2 years ago
A salesperson earns $350.25 per week plus 12% of her weekly sales. Which of the following describes the sales necessary for the
Natali5045456 [20]
The equation for problem above is:
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But the question is "at <span>least" $800.50 so the final answer is

</span>x \geq 3752.08<span>
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This is an advertising campaign which creates a curiosity in the minds of consumers till the brands last ad. This type of campaign will keep the consumers always think about the product and ad which is going to be launched soon.  

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