Answer:
Monthly installment = $419.54
Explanation:
<em>Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.
</em>
The monthly installment is computed as follows:
Monthly installment= Loan amount/annuity factor
Loan amount =13,791
<em>Annuity factor = (1 - (1+r)^(-n))/r
</em>
r -monthly rate of interest, n- number of months
r- 6%/12 = 0.5% = 0.005, n = 3 × 12 = 36
Annuity factor = ( 1- (1+0.005)^(-36))/0.005
= 32.87101624
Monthly installment = Loan amount /annuity factor
= 13,791/13,791= 419.5489394
Monthly installment = $419.54
The interest earned compounded annually at $80.14
$1000 x (1.07)^2=1144.90 after 2 years
1144.90 x 0.07 = 80.14
A technique of calculating and adding interest to funding or mortgage as soon as a year, in preference to for any other period: if you borrow $100,000 at five% hobby compounded annually, after the first yr you'll owe $five,250 on a principal of $a hundred and five,000.
It's far to be mentioned that the above-given system is the general components while the major is compounded n quantity of instances in a yr. If the given most important is compounded annually, the quantity after the term at percentage fee of interest, r, is given as A = P(1 + r/a hundred)t, and C.I. could be P(1 + r/100)t - P.
That stated, annual hobby is commonly at a higher rate because of compounding. in place of paying out monthly, the sum invested has twelve months of increase. But if you are able to get the equal price of interest for month-to-month payments, as you can for annual bills, then take it.
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Answer:
False statement is:
B Investment banks mainly collect deposits and make loans.
Explanation:
Investment banks act as an intermediary between its two kind of customers, which are corporate and individual customers.
They help individual customers to submit initial public offer, and investing in shares issued by corporate firms.
Thus, on one end their client is corporate firm and on the other hand their client is individual.
Thus, it do not invest by providing loans to their customers.
Therefore, Statement B is False.
B Investment banks mainly collect deposits and make loans.
Answer: a. $44,617
Explanation:
The Internal Rate of Return brings the NPV of a project to zero which means that the cost of the project will be the Net present value of the cash inflows using the IRR as the discount rate.
This is a constant payment so can be treated as an annuity.
Present value of annuity = Annuity * Present value interest factor of annuity, 4 years , 13%
= 15,000 * 2.9745
= 44,617.5
= $44,617 approx
Answer:
C. Non - profit
Explanation:
Consumer markets - these are companies selling mass consumer goods and services like drinks, cosmetics etc. Market where people purchase things for consumption rather than further sale.
Business market - this is where companies purchase raw materials, natural resources and other components needed for production process.
Global markets - Companies in the global marketplace navigate cultural, language, legal, and political differences while deciding which countries to enter, how to enter each (as exporter, licenser, joint venture partner, contract manufacturer, or solo manufacturer), how to adapt product and service features to each country, how to set prices, and how to communicate in different cultures.
Non - profit - Companies selling to nonprofit organizations with limited purchasing power. These non profits organizations are unable to purchase somethings at prevailing price increases. Non profit may include universities, churches etc.
