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lord [1]
4 years ago
15

You have a loan outstanding. It requires making eight annual payments of $ 1 comma 000 each at the end of the next eight years.

Your bank has offered to restructure the loan so that instead of making the eight payments as originally​ agreed, you will make only one final payment in eight years. If the interest rate on the loan is 6 %​, what final payment will the bank require you to make so that it is indifferent to the two forms of​ payment?
Business
1 answer:
dexar [7]4 years ago
7 0

Answer:

$9,897

Explanation:

As per the data given in the question,

Given that

Number of annual payments = 8

Amount of annuity = $1,000

Interest rate of loan = 6%

Future value of annuity = Amount of annuity((1+rate)^time period - 1) ÷ rate

= $1,000((1.06)^8-1) ÷ 0.06

= $9,897

We simply applied the formula to compute the future value of annuity and the same is shown above .

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VARVARA [1.3K]

total cost to be accounted for

Answer: Option 3.

<u>Explanation:</u>

In Economics, total cost is the all out monetary expense of creation and is comprised of variable cost, which fluctuates as indicated by the amount of a decent delivered and incorporates sources of info, for example, labor and raw material.

Add your fixed expenses to your variable expenses to get your all out expense. Your all out average cost for basic items on your spending limit is the aggregate sum of cash you went through over a one month time span. The equation for discovering this is basically fixed costs + variable expenses = total cost.

7 0
3 years ago
The x games promotes its product to consumers who exhibit an extreme sport lifestyle. this is an example of:
Alexxandr [17]
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4 0
4 years ago
You manage an equity fund with an expected risk premium of 12.4% and a standard deviation of 38%. The rate on Treasury bills is
timama [110]
  • The expected return = = 12.84 %.
  • The standard deviation = 22.8 %.

<u>Explanation</u>:

On the client's portfolio (total investment = 120 K + 80 K = 200 K,  

  • The expected return

                    = (12.4 %risk premium + 5.4 %risk free return) \times (120 K / 200 K) + 5.4 % \times (80 K / 200 K)

                    = 17.8 % \times 0.6 + 5.4 % \times 0.4

                    = 12.84 %.

  • The standard deviation would be = 38 % \times 0.6 + 0% \times 0.4

                                                                  = 22.8 %.

4 0
3 years ago
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Rom4ik [11]

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The journal entry is used by bookkeepers and accountants. Ideally, it is important that a journal has all of following informations; date, reference number, debit balance, credit balance and transaction description.

Also, the total amount of money credited must equal the total amount of money debited.

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III. A firm should be able to trace amounts through the accounting records and back to their source documents.

5 0
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Archy [21]

Answer:

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Explanation:

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