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Jet001 [13]
2 years ago
15

Lang Warehouses borrowed $178,960 from a bank and signed a note requiring 8 annual payments of $28,819 beginning one year from t

he date of the agreement. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Determine the interest rate implicit in this agreement. (
Business
1 answer:
yan [13]2 years ago
4 0

Answer: 6%

Explanation:

The annual payments can be considered to be annuity payments as they are constant. The amount borrowed can be considered the present value of the annuity.

Present value of annuity = Annuity * Present value interest factor of annuity, 8 years, %?

178,960 = 28,819 * Annuity factor

Annuity factor = 178,960 / 28,819

= 6.20979

To find out the interest rate, look at the Present Value of Annuity table and go to the 8 period column. Look for 6.20979. The interest rate that intersects with this factor is the interest rate implicit in this agreement.

That rate is 6%.

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Salon Du Jour offers special combination packages at a reduced price. Separately, a haircut is $30 and a conditioning treatment
Andreas93 [3]

Answer:

product bundle

Explanation:

Product bundling is a sales promotion strategy that involves marketers offer a discount on two or more items sold together as a single item.  Complementary goods, or similar items are packaged and offered to consumers. Product bundling is also called package deals.

Product bundling may be targeted to a particular item on the bundle or both. Due to the discount offered, product bundling increases the revenues from the products on offer. It also can increase the market share for each of the products on offer. In this case, a haircut and a conditioning treatment are complementary services. Bundling them together encourages consumption for both.

7 0
3 years ago
Karen is designing a process for issuing checks and decides that one group of users will have the authority to create new payees
Nataly [62]

Answer:

D. Separation of Duties

Explanation:

Separation of duties also know as segregation of duties refuses that one person he responsible of acquisition of assets, their custody and related record keeping. The process in which Karen is using to prevent fund by separating individuals who as the authority to issue checks is known as separation of duties. It is a form of internal control aimed at reducing risk of errors and frauds.

4 0
2 years ago
The listing type that assures a broker that he or she will receive compensation no matter who procures the buyer is what kind of
TiliK225 [7]

Answer:

It's termed the Exclusive right to sell

4 0
3 years ago
Help! I already choose one of the correct answers
Eva8 [605]
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8 0
3 years ago
Time Value of Money: Basics Using the equations and tables in Appendix 25A this chapter, determine the answers to each of the fo
kow [346]

Answer:

Present value (PV) = $3,000

Interest rate (r) = 6% = 0.06

Number of years (n) = 2 years

Future value (FV) = ?

FV = PV(1 + r)n

FV = $3,000(1 + 0.06)2

FV = $3,000(1.06)2

FV= $3,000 x 1.1236

FV = $3.370.80                                                                                                                                                                                                                                                                                    

Explanation:

In this case, there is need to compound the present value for 2 years at 6% interest per annum. The formula to be applied is the formula for future value of a lump sum (single investment).

6 0
3 years ago
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