Answer:
8%
Explanation:
To find the answer, you have to use the formula to calculate the rate of interest:
r=(FV/PV)^1/n-1, where
r= rate of interest
FV= future value=$93,228
PV= present value=$68,500
n= number of periods of time=4 years
Now, you can replace the values in the formula:
r=(93,228/68,500)^1/4-1
r=1.08-1
r=0.08→8%
According to this, the APR is 8%.
the answer would be letter b
Answer:
4.76%
Explanation:
The requirement in this question is determining the discount rate which gives the same present value in both cases since discount rates discount future cash flows to present value terms.
PV of a pertuity=annual cash flow/discount rate
PV of a pertuity=$17,000/r
PV of ordinary annuity=annual cash flow*(1-(1+r)^-n/r
PV of ordinary annuity=$30,000*(1-(1+r)^-18/r
$17,000/r=$30,000*(1-(1+r)^-18/r
multiply boths side by r
17000=30,000*(1-(1+r)^-18
divide both sides by 30000
17000/30000=1-(1+r)^-18
0.566666667=1-(1+r)^-18
by rearraging the equation we have the below
(1+r)^-18=1-0.566666667
(1+r)^-18=0.433333333
divide indices on both sides by -18
1+r=(0.433333333)^(1/-18)
1+r=1.047554315
r=1.047554315-1
r=4.76%
Answer:
A. $1,568.07
Explanation:
Amount financed = (1 - .25) ×$287,500 = $215,625
PV = $215,625 = C × (1 - {1 / [1 + (.0375 / 12)]180}) / (.0375 / 12) C = $1,568.07
Answer: Workload
Explanation:
The workload approach is one of the type of method that set the size of the sales force and also helps to reduce the complexity.
- It higher the volume of the products for establish the practice between the customers and manufacturing the products.
- The workload approach mainly focus on the various types of management issue such as marketing communication, market sharing goals and the pricing and the investment.
Therefore, Workload approach is the correct answer.