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Julli [10]
3 years ago
13

Mary O. Andrettey wants to purchase an expensive sports car. She needs to borrow money to purchase the car, and has loan proposa

ls from three different sources. The cash flows for each proposal are:
Business
1 answer:
irina [24]3 years ago
6 0

Answer: Proposal C

Explanation:

The way to solve this is to calculate the Present Values of all these payments. The smallest present value is the best.

Proposal A.

Periodic payment of $2,000 makes this an annuity.

Present value of Annuity = Annuity * ( 1 - ( 1 + r ) ^ -n)/r

= 2,000 * (1 - (1 + 0.5%)⁻⁶⁰) / 0.5%

= $103,451.12

Proposal B

Present value = Down payment + present value of annuity

= 10,000 + [2,200 * ( 1 - ( 1 + 0.5%)⁻⁴⁸) / 0.5%]

= 10,000 + 93,676.70

= $103,676.70

Proposal C

Present value = Present value of annuity + Present value of future payment

= [500 * (1 - (1 + 0.5%)⁻³⁶) / 0.5%] + [116,000 / (1 + 0.5%)⁶⁰]

= 16,435.51 + 85,999.17

= $‭102,434.68‬

<em>Proposal C has the lowest present value and so is best. </em>

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yawa3891 [41]
I think it’s d but try to search it D
8 0
2 years ago
According to Victor Vroom, which of the following is not considered a factor that influences motivation?
Gre4nikov [31]

Answer:

A, independence

Explanation:

Motivation can be defined as the stimulation of individuals to achieve a certain goal.

It can also be said to be the a force that drives the wants, needs, etc of an individual. Motivation have various influencing factors as well as several modes.

Factors that influences motivation include; valence, instrumentality, expectancy, etc.

Modes of motivation include; intrinsic, extrinsic, introjected and identified motivation.

From the above question, independence isn't a factor that influences motivation. This is because independence, according to the dictionary, can be said to be a state of freedom from something.

Freedom does not motivate a person to achieve anything as there will be no pressure or driving force or even an individual to encourage. This makes goals impossible to difficult to achieve.

Cheers.

7 0
2 years ago
Acme Home Lending offers home equity loans up to 80% of the home value for its customers. If Sally Johnson has a home valued at
EastWind [94]

Answer:

She can borrow $110,000 in a home equity loan from Acme

Explanation:

Home equity loan is available to the 80% of the Home value. sally has already a mortgage of $50,000 so she can only borrow the differential amount of Allowable loan and existing loan.

As per given data

Home value = $200,000

Allowable Loan limit = $200,000 x 80% = $160,000

Existing Loan = $50,000

Available limit of Loan = Allowable Loan limit - Existing Loan = $160,000 - $50,000 = $110,000

She can borrow $110,000 in a home equity loan from Acme

7 0
2 years ago
Tommy bought 35 shares of stock at $45.75 per share. He received dividends of $82.45 during the year. At the end of the year, hi
gogolik [260]

Answer:

10.57%

Explanation:

Return on investment is a profitability measure of gains realized from an investment. It is a ratio that shows how a business uses its resources to generate profits. Return on investment compares the net income against the initial investment.

ROI = Net Income / Cost of Investment

For Tommy,

The initial investment is 35 x $45.75 =$1,601.25

The gains from the investments

Dividends of $82.45

Gains in share value = 35 x ($48. 75 -$45.43)

35 x 2.48 =$86.8

Net gains will be $82.45 + $86.8= $169.25

ROI = $169.25/$1601.25

ROI =0.10569  X 100

=10.57%

5 0
3 years ago
Annual interest rate 4.00%
oksian1 [2.3K]

Answer:

formula is PRT÷10

Explanation:

so solve it

7 0
2 years ago
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