Juan found a supplier that costs 20% less than all other suppliers who provide the same quality this is an example of

Mortgages, loans taken to purchase a property, involve regular payments at fixed intervals and are treated as reverse annuities.

storchak [24]

Answer:

Ans. your monthly payment, for 30 years is $9,257.51 if you buy a property worth $1,000,000 and you make a down payment of $100,000

Explanation:

Hi, first we have to change the fixed rate in terms of an effective monthly rate, which is 1% effective monthly (12% nominal interest/12 =1% effective monthly). After that, take into account that the property is going to be paid in 30 years, but since the payments are going to be made in a montlhly basis, we have to turn years into months (30 years * 12 = 360 months).

After all that is done, all we have to do is to solve the following equiation for "A".

$PresentValue=\frac{A((1+r)^{n} -1)}{r(1+r)^{n} }$

Where:

A= Annuity or monthly payment

r= Rate (effective monthly, in our case)

n= Periods to pay (360 months)

Everything should look like this.

$900,000=\frac{A((1+0.01)^{360} -1}{0.01(1+0.0.1)^{360} }$

$900,000=A(97.2183311)$

$\frac{900,000}{97.2183311} =A$

$A=9,257.51$

Best of luck.

6 0

3 years ago

Amy is a package delivery service manager. She is interested in implementing ___________, the management philosophy pioneered by

ValentinkaMS [17]

Answer:

The correct answer is Scientific Management

Explanation:

The Principles of Scientific Administration is a monograph published by Frederick Winslow Taylor in 1911. This influential monograph, which ordered the principles of scientific administration, is a transcendental text of modern organization and decision theory that has motivated students and administrators about administrative technique. Taylor was an American manufacturing manager, mechanical engineer, and subsequently an administrative consultant in later years. This character is commonly known as "The Father of the Scientific Administration." His approach is also referred to as Taylor Principles or Taylorism.

8 0

3 years ago

Farrow Co. expects to sell 300,000 units of its product in the next period with the following results. Sales (300,000 units) $ 4

Artyom0805 [142]

Answer and Explanation:

The preparation of the incremental analysis is shown below:

Incremental analysis

Particulars Normal Additional Total

Revenue $4,500,000 $360,000 $4,860,000

(30,000 units × $12)

Less: expenses

Material $600,000 $60,000 $660,000

($600,000 ÷ 300,000 × 30,000 units)

Labor $1,200,000 $120,000 $1,320,000

($1,200,000 ÷ 300,000 × 30,000 units)

Overhead $300,000 $45,000 $345,000

($300,000 × 15%)

Selling expenses $450,000 $0 $450,000

Admin expenses $771,000 $129,000 $900,000

Net income $1,179,000 $6,000 $1,185,000

Since the net income is increased by $6,000 so the company should accept the offer

7 0

3 years ago

Which of the following should you do during an interview? Question 2 options: Demand specific benefits. Explain why your previou

ladessa [460]

Answer:

Explain why your previous job was wrong for firing you. Tell stories of how you worked with others to complete a project or solve problems.

Explanation:

I just kow

5 0

3 years ago

Nachman Industries just paid a dividend of D0 = $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% i

Nuetrik [128]

Answer:

Stock's current market value = $44.87

Explanation:

We can solve this stock valuation problem using DDM (Dividend Discount Model).

Lets find the dividends for the years:

D0 = $1.32

D1 = $1.32*1.3 = $1.716

D2 = $1.716*1.1 = $1.888

D3 = $1.888*1.05 = $1.982

The formula of stock valuation:

$P_n=\frac{D_{n+1}}{k_e-g}$

Lets calculate the terminal value after Year 3 afterwards:

$P_n=\frac{D_{n+1}}{k_e-g}\\P_n=\frac{1.982}{0.09-0.05}\\P_n=49.55$

<u>Note:</u> rate of return, k_e = 0.09 (given) and growth rate (g) is 5% or 0.05

Now,

The present value of the stocks is gotten using formula:

$P_n=\frac{D_{n+1}}{(1+r)^n}+\frac{Terminal}{(1+r)^n}$

So, we have:

$P_0=\frac{1.716}{1.09}+\frac{1.888}{1.09^2}+\frac{49.55}{1.09^2}\\P_0=44.87$

Stock's current market value = $44.87

4 0

3 years ago