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3 years ago

Example 31: S borrows 5,00,000 to buy a house. If he pays equal instalments for 20 years

Business

1 answer:

Veronika [31]3 years ago

7 0

Answer:

$58.729

Explanation:

To find the answer, we need to use the present value of an annuity formula.

The formula is:

P = X [(1 - (1 + i)^-n) / i ]

Where X is the annual instalment

P is the present value of the investment (500,000 in this case)(

i is the interest rate (10% in this case)

and n is the number of periods (20 years in this case)

We now plug the amounts into the formula:

500,000 = X [ (1 - (1 + 0.10)^-20) / 0.10 ]

500,000 = X [8.51356]

500,000 / 8.51356 = X

58,729 = X

So the value of the equal annual instalment will be $58.729

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Advertising keeps consumers informed about new products in the market at their disposal.

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Describe the learned hand rule, and discuss the economic logic underlying it. do you believe the objective is being achieved?

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Learned Hands favored an interventionist central government economic policy. He was also influenced by the distribution of wealth. Roosevelt's radical economic reforms including the New Deal Policy. However, was vigilant on the dangers of an authoritarian government and did not agree of "packing the court".

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Suppose Brazil has a comparative advantage in coffee production and Mexico has a comparative advantage in tomato production. If

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Answer:

The correct answer is A. Brazilian tomato producers are worse off.

Explanation:

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3 years ago

Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay divi

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Answer:

Cost of retained earnings = 0.13

Explanation:

given data

(D1) = $1.80

current price = $36

growth rate = 9 percent

solution

we get here Cost of retained earnings (Ke) that is express as

Cost of retained earnings = ( D1 ÷ P ) + g ................1

here P is price and g is growth rate

put here value and we get

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3 years ago

The following information was reported by Young's Air Cargo Service for 2017: Net fixed assets (beginning of year) $ 1,860,000 N

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Answer:

1.56

Explanation:

Data provided in the question:

Net fixed assets (beginning of year) = $1,860,000

Net fixed assets (end of year) = $2,280,000

Net operating revenues for the year = $3,230,000

Net income for the year = $1,600,000

Now,

company's fixed asset turnover ratio for the year

= Net operating revenues ÷ Average total assets

Also,

Average total assets

= [Net fixed assets (beginning of year) + Net fixed assets (end of year) ] ÷ 2

= [ $1,860,000 + $2,280,000 ] ÷ 2

= $2,070,000

Therefore,

Company's fixed asset turnover ratio for the year

= $3,230,000 ÷ $2,070,000

= 1.56

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3 years ago