Answer:
The type of lease on which Kevin has taken apartment is Capital lease.
Explanation:
Capital lease is that type of lease agreement , where the lessor ( one who originally owns the apartment ) has agreed to transfer the ownership rights of his property ( apartment in this case ) to the lessee ( Kevin ) after the end of lease period. Here the lease period is of 5 years where Kevin would have to pay $3,500 every month and at the end of period he has to pay $80,000 as per agreement . Normally this type of agreements are of long term and non cancel able in terms of their nature.
Answer:
EV = -$400
The expected value of buying the insurance policy is -$400
Explanation:
Expected value of buying the insurance policy;
EV = expected benefits - insurance cost
EV = xE - C
chances of collection being damaged x = 10% = 0.1
Insurance cost C = $500
Benefit E = $1000
Substituting the values;
EV = 0.1 × 1000 - 500 = 100 - 500
EV = -$400
The expected value of buying the insurance policy is -$400
Answer:
- $2,670.21
- $1,068.09
Explanation:
1. The payment is a fixed amount so is an annuity. Using the Future value of an annuity factor table, we can find the annuity factor for 18 years at 8%.
Future value of annuity = Payment * Future value of an annuity factor , 18 years, 8%
100,000 = Payment * 37.4502
Payment = 100,000/37.4502
= $2,670.21
2. Future value of annuity = Payment * Future value of an annuity factor , 18 years, 8%
140,000 = Payment * 37.4502
Payment = 140,000/37.4502
= $3,738.30
How much more would they pay = 3,738.30 - 2,670.21
= $1,068.09
Answer:
a defensive open market sale
Explanation:
The Trading Desk at the Federal Reserve Bank of New York is in charge of carrying on the short term objectives specified by the Federal Open Market Committee (FOMC). The Trading Desk engages in open market operations (OMO), which are the purchase and sale of Fed's securities.
In this case, in order to lower the float, the Trading Desk should carry on a defensive open market sale which should temporarily lower the interest rate. Defense open market operations are designed to offset temporary fluctuations, they shouldn't affect overall monetary policy.
Answer:
the principal amount at a rate of 4% is 2000
principal amount at a rate of 3.5% is 4000-2000 =2000
Explanation:
We have given total amount borrowed = $4000
Let x amount is borrowed at a rate of 4%
So $4000-x is borrowed at rate of 3.5%
Total interest = $150
We know that simple interest 
So 
0.5 x=1000
x = 2000
So the principal amount at a rate of 4% is 2000
And principal amount at a rate of 3.5% is 4000-2000 =2000
