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user100 [1]
3 years ago
13

A borrows 10,000 from B and repays with 40 quarterly installments at a 4% annual effective rate. After 6 years, B sells the righ

ts to future payments to C, at a price which yields C 6% annual effective over the remaining installment periods. What price did C pay
Business
1 answer:
Vsevolod [243]3 years ago
6 0

Answer:

$4,303.68

Explanation:

Quarterly payment = $10,000 / 32.835 (PVIFA, 1%, 40 periods) = $304.55

After 6 years, the principal due = $4,483

Present value of an annuity = payment x PVIFA = $304.55 x 14.13126 (PVIFA, 1.5%, 16 periods) = $4,303.68

The difference is not significant since the remaining payments are not many, and the increase in quarterly rate is only 0.5%

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Assume your goal in life is to retire with $2,500,000. How much would you need to save at the end of each year if interest rates
LUCKY_DIMON [66]

Answer:

Annual deposit= $60,982.31

Explanation:

Giving the following information:

Future Value= $2,500,000

Number  of periods= 20 years

Interest rate= 0.07

<u>To calculate the annual deposit, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (2,500,000*0.07) / [(1.07^20) - 1]

A= 60,982.31

4 0
3 years ago
A corporate bond pays 6.25 percent interest. How much would a municipal bond have to pay to be equivalent to this on an after ta
garri49 [273]

Answer:

C) 4.50 percent

Explanation:

It is given that :

Interest a corporate bond pays = 6.25 percent

The marginal percent tax bracket is given as : 28 %

We have to find the amount that the municipality bond shall pay to be the equivalent to the amount after the tax basis :

We known that the municipal bond is tax exempted after the corporate tax bond should be equal to the municipal bond to be indifferent.

Thus, rate of return = rate of return after tax = rate x (1 - tax rate)

                                                                         = 6.25 % x (1 - 0.28)

                                                                         = 4.50 %

Therefore the answer is   = 4.50 %

5 0
3 years ago
Before you confirm the backpack shape selection, let's make sure you're reading the backpack shape information properly. Which o
Novosadov [1.4K]

<u>Teardrop Rucksack</u> has the highest production cost.

Production fees refer to all of the direct and oblique fees businesses face from production a product or offering a carrier. Manufacturing expenses can consist of a selection of costs, including exertions, raw substances, consumable manufacturing materials, and general overhead.

It includes 3 most important costs: uncooked substances, direct labor, and overhead. Those charges can be fixed (maximum overhead) or variable (uncooked substances and hard work). The whole product value formula is general Product price = fee of raw substances + price of Direct exertions + price of Overhead.

Blanketed inside the production fee are (1) the fee of uncooked materials, (2) the fee of direct labor, and (3) the cost of overhead. Raw substances and hard work costs are frequently variable, even as the overhead expenses are in the main fixed.

Learn more about production cost here:- brainly.com/question/13738783

#SPJ4

4 0
1 year ago
If the Chief Justice of the Supreme Court is part of the majority, he or she gets to write the _______.
joja [24]
When the court renders an opinion, the Chief Justice- when in the majority-decides who writes the courts' opinion. So the answer is C
7 0
3 years ago
Financial ratios that reflect the degree to which a firm relies on borrowed funds are called ________ ratios. leverage liquidity
Vanyuwa [196]
Leverage would  be your answer.

3 0
3 years ago
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