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Rudiy27
2 years ago
11

You lend a friend ​$​, which your friend will repay in equal annual​ end-of-year payments of ​$​, with the first payment to be r

eceived 1 year from now. What rate of return does your loan​ receive?
Business
1 answer:
Vadim26 [7]2 years ago
6 0

Answer: 18%

Explanation:

The payments that your friend will make are an annuity as they are constant. This means that the loan amount of $15,000 is the present value of the annuity.

To find the rate of return, use the factor tables.

Present value of annuity = Annuity * Present value interest factor of annuity, 14 years, ?%

15,000 = 3,000 * Present value interest factor of annuity, 14 years, ?%

Present value interest factor of annuity, 14 years, ?% = 15,000 / 3,000

Present value interest factor of annuity, 14 years, ?% = 5.0

Go to the present value of annuity factor table and find out what interest rate intersects with 14 periods such that the factor is 5.0.

That rate is 18%.

Rate of return is therefore 18%.

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They have high school degrees with some or no college experience.

Explanation:

  • The workers in Transportation and Logistics careers usually have high school degrees with some or no college experience.
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7 0
3 years ago
Read 2 more answers
Selma owns a roofing business. She enjoys being her own boss, but her satisfaction comes at a price. Her days are filled with or
Basile [38]

Answer:

D. Sole proprietorship.

Explanation:

We know it's definitely is a sole proprietorship because of 'unlimited personal liability' which is a key characteristic.

Selma's business is not a joint venture because she is the only person who invested and runs the business whereas a joint venture is created by two or more entities or 'shared ownership'

Nor is it a corporation for this is an 'organization' owned and manned by many people but is regarded as a single entity. Neither is her business an s corporation because that just the same as a corporation but just with different tax regulations.

3 0
3 years ago
Yeats Corporation's sales in Year 1 were $396,000 and in Year 2 were $380,000. Using Year 1 as the base year, the percent change
Ahat [919]

Answer:

Yeats Corporation

The percent change for Year 2 compared to the base year is -4.04%

Explanation:

a) Calculations:

Year 1 Sales = $396,000

Year 2 Sales = $380,000

Reduction = $16,000

Percentage reduction = $16,000/$396,000 x 100 = 4.04%

This is a reduction, and it is negative.

b) The change in sales is calculated as the difference between year 1 and year 2 sales over the sales in year 1 multiplied by 100.  This is expressed as a percentage by the multiplication by 100.  The percent change describes the relationship between the sales figure in year 1 and the sales figure in 2.  When calculated as above, it shows that sales reduced in year 2 by 4.04% from the sales in year 1.

3 0
3 years ago
___________are funds that the bank keeps on hand that are not loaned out or invested in bonds.
skad [1K]

Answer:

Reserves is your answer...

Explanation:

Hope this helps you!!!

3 0
2 years ago
A car dealer acquires a used car for $14,000, with terms FOB shipping point. Compute total inventory costs assigned to the used
erica [24]

Answer: $15,450

Explanation:

The inventory cost of the car is every cost that was incurred to get it to the car dealer and ready for sale.

Total inventory cost assigned is:

= Cost of car + transportation-in + shipping insurance + car import duties

= 14,000 + 250 + 300 + 900

= $15,450

8 0
2 years ago
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