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garri49 [273]
2 years ago
15

Perry Mazza wants to borrow $30,000 from the bank. The interest rate is 5% and the term is for 5 years.

Business
1 answer:
Anna71 [15]2 years ago
8 0

Answer:

The amount of interest paid is $ 1,500.

Explanation:

Given that Perry Mazza wants to borrow $ 30,000 from the bank, and the interest rate is 5% and the term is for 5 years, to determine what is the amount of interest paid, the following calculation must be performed:

(30,000 x 5) / 100 = X

150,000 / 100 = X

1,500 = X

Therefore, the amount of interest paid is $ 1,500.

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A firm is reviewing an investment opportunity that requires an initial cash outlay of $336,875 and promises to return the follow
Fofino [41]

Answer:

The NPV of this investment is $64,581.75

Explanation:

Hi, we need to discount to present value all the future cash flows, the formula to use is as follows:

NPV=-Investment+\frac{CF1}{(1+r)^{1} }+\frac{CF2}{(1+r)^{2}} +\frac{CF3}{(1+r)^{3}} +\frac{CF4}{(1+r)^{4}} +\frac{CF5}{(1+r)^{5}}

Where

NPV = Net Present Value

CF = The cash flow stated in the problem by year

r= discount rate (in our case, 0.08 or 8%)

Now, let´s solve this.

NPV=-336,875+\frac{100,000}{(1+0.08)^{1} }+\frac{82,000}{(1+0.08)^{2}} +\frac{76,000}{(1+0.08)^{3}} +\frac{111,000}{(1+0.08)^{4}} +\frac{142,000}{(1+0.08)^{5}}

NPV=-336,875+ 92,592.59 + 70,301.78 + 60,331.25 + 81,588.31+96,642.81

NPV=64,581.75

So, the net present value of this project is $64,581.75

Best of luck.

7 0
3 years ago
How do trade agreements of international organizations affect trade? by incentivizing the development of trade policies by elimi
kupik [55]

Any contractual arrangement between governments addressing their trading interactions is referred to as a trade agreement. Trade treaties can be bilateral or multilateral, that is, among two or more states.

<h3>Why are trade agreements important?</h3>

Countries engage in international trade because there are financial benefits to be had. These benefits include expanded product diversity, cheaper pricing, superior quality, enhanced technological spread, and increased consumption by the country as a whole. Increased trade openness has been associated with higher GDP growth.

Thus Option C is correct about the trade agreement.

For more information about the Trade agreement refer to the link:

brainly.com/question/1550074

7 0
2 years ago
Prompt<br> What does the human resources department of a company do?
djverab [1.8K]

Answer: Human resources specialists are responsible for recruiting, screening, interviewing and placing workers. They may also handle employee relations, payroll, benefits, and training. Human resources managers plan, direct and coordinate the administrative functions of an organization.

Explanation: I used google to find my answers!

6 0
3 years ago
The study of economics is primarily concerned with:
IgorC [24]
Choices/ The way goods and services are produced and provided to consumers, and to used by them.
5 0
2 years ago
A study reported that a 10% increase in the price of cigarettes would reduce consumption by 4% in the short-run and by 7.5% in t
Alja [10]

Answer:

Price elasticity of demand shows how much a 1% change in the price of a good or services changes the quantity demanded.

In the short run, a 10% increase in price decreases quantity demanded by 4%

PED short run = % change in price / % change in quantity = 4% / 10% = 0.4

PED long run = % change in price / % change in quantity = 7.5% / 10% = 0.75

Both PEDs are inelastic since they are less than 1, which means that an increase in price will result in a proportionally smaller decrease in the quantity demanded. But the PED in the long run is less inelastic, which means that an increase in price will decrease the quantity demanded more in the long than in the short run.

This happens because smokes consider that cigarettes are a basic necessity, so they are willing to purchase them even if the price increases. But as time passes (long run), more smokers will consider that it is not worth paying that much for cigarettes and will probably quit smoking or at least reduce the number of cigarettes they smoke per day.

8 0
3 years ago
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