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Llana [10]
2 years ago
12

A $25,000 bank loan is to be repaid in equal yearly payments of $2745 over 15 yr at an effective annual interest rate of 7%. The

borrower uses the loan money to earn an annual effective return of 10% in the stock market. All money earned is kept in the stock fund. What is most nearly the present-day value of the earnings over 15 yr as a result of this loan and investment venture
Business
1 answer:
ohaa [14]2 years ago
5 0

Answer:

The present-day value of the earnings over 15 years as a result of this loan and investment venture is:

= $24,998.51.

Explanation:

a) Bank loan = $25,000

Annuity Payment = $2,745 yearly

Period of loan = 15 years

Effective annual interest rate = 7%

Effective annual return = 10%

Future value of $25,000 at 10% for 15 years = $25,000 * 4.1777

= $104,425

The present-day value of $104,425 over 15 years at 10% effective annual return, using an online financial calculator =

N (# of periods) = 15 years

I/Y (Interest per year) = 10 years

PMT (Periodic Payment) = 0

FV (Future Value) = $104,425

Results

PV = $24,998.51

Total Interest $79,426.49

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Refer to the following table to answer the following questions:
sineoko [7]

Answer:

Following are the answer to this question:

In question first, the answer is "Option d".

In question second, the answer is "Option e".

In question third, the answer is "Option e".

In question fourth, the answer is "Option e ".

In question fifth, the answer is "Option b".

Explanation:

Given values:

Checkable \ deposits =  \$ 400,000,000\\Currency = \$ 340,000,000\\Traveler's \ checks = \$ 4,000,000\\Money \ market \ mutual \ funds = \$ 50,000,000\\Small \ time \ deposits = \$ 6,000,000\\Savings \ deposits = \$ 850,000,000\\

Solution:

  • \text{M1= currency +checkable deposits + travellers check}

    = $400000000+$340000000+$4000000

    = $744000000

\bold{\text{M2 = M1 +money market mutual funds + small time deposit+ saving deposit}}

      =  $744000000 + $50000000+$6000000+$850000000

       = $1,650,000,000

  • Saving account deposits, which means its amount of money increased throughout the M2 portion regular savings account. So M2 will grow  
  • Its increase in the number of employees may not impact the balance sheet with banks, because each bank maintains its entire cash flow
  • For banks, loans are investments if they're lending money as a bank to people. So, it's on income statement asset side
3 0
2 years ago
_____ do much of the actual work to prepare for cases and are heavily relied upon by lawyers and law firms.
olganol [36]
The correct answer is A) Paralegals. Hope this helps.
4 0
3 years ago
Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three ac
poizon [28]

Answer:

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Explanation:

Calculation for what would be the overall margin on the order

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Therefore would be the overall margin on the order is $86.87

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When do many companies expect to have a net loss
Korolek [52]
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Gantt charts are effective for project scheduling if:
pochemuha

Answer: c. The project contains simple activity sequences

Explanation:

Gantt chart is a firm of bar chart that depicts a project schedule as it helps in the scheduling of a particular project.

Gantt chart is a graphical tool that helps in showing the activities that are performed against time to the project team or project manager. Gantt charts are effective for project scheduling if such project contains simple activity sequences.

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