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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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A dry cleaner uses exponential smoothing to forecast equipment usage at its main plant. August usage was forecasted to be 50 per
katovenus [111]

Answer:

Explanation:

Forecast usage = 50 %

Actual Usage = 52%

smoothing constant = 0.10

⇒ 50 + 0.10 (52 - 50)

⇒ 50 + 0.10 (2)

⇒ 50 + 0.2 = 50.20

8 0
2 years ago
Maria goes to a concert after her mother asked her not to go. The ticket price was $100, and Maria's mom found out and now doesn
igomit [66]

Answer:

Her mother's trust

Explanation:Since opportunity cost is summarily defined as the value of something that must be put on the line in order to acquire or achieve something else, the opportunity cost for maria choosing to go to the concert is her mother's trust. In other words, she gave up her mother's trust to attend the concert.

6 0
3 years ago
On July 10, 2020, Pronghorn Music sold CDs to retailers on account and recorded sales revenue of $635,000 (cost $508,000). Prong
mixas84 [53]

Answer:

(a)

Dr Accounts Receivable $635,000

Cr 7/10/2020 Sales Revenue $635,000

Dr Cost of Goods Sold $508,000

Cr Inventory $508,000

(b)

Dr Sales Returns & Allowances $82,700

Cr 10/11/2020.Accounts Receivable $82,700

Dr Returned Inventory $66,160

Cr Cost of Goods Sold $66,160

10/31/2020 No entries are needed as the return period has expired.

Explanation:

(a)

Dr Accounts Receivable $635,000

Cr 7/10/2020 Sales Revenue $635,000

Dr Cost of Goods Sold $508,000

Cr Inventory $508,000

(b)

Dr Sales Returns & Allowances $82,700

Cr 10/11/2020.Accounts Receivable $82,700

Dr Returned Inventory $66,160

Cr Cost of Goods Sold $66,160

($508,000 / $635,000) x $82,700= $66,160

10/31/2020 No entries are needed as the return period has expired.

8 0
3 years ago
If a plant has the phenotype of the dominant trait of having thorns, then the plant has either the genotype Tt or tt. Question 8
sashaice [31]

The genotype of an organism is the set of genes it possesses. All of an organism's observable traits make up its phenotype.

The statement given is False, the genotype is TT.

<h3>What is a plant's phenotype based on its genotype?</h3>

The genotype of an organism is the particular combination of alleles for a given gene.

As an example, the flower-color gene genotypes for the pea plants above were red-white, white-white, and red-red.

The physical manifestation of an organism's allelic combination is called phenotype (genotype).

Because T is dominant while T is recessive, if a plant has the phenotype of the dominant trait of having thorns, it will have TT.

As a result, the answer is false. TT should be the genotype.

For more information about the plant types, refer below

brainly.com/question/20730322

6 0
2 years ago
In property insurance terminology, all of the following are considered hazards except: a. a steam iron left on unattended. b. a
Cloud [144]

Answer: fire which is started in a waste paper basket.

Explanation:

Hazard is simply defined as the condition that will lead to an increase in loss. Property insurance are policies that can either offer liability coverage or property protection.

Property insurance include flood insurance, homeowners insurance, and earthquake insurance etc. In property insurance terminology, all of the options in the question are considered hazards except fire which is started in a waste paper basket. This is not a hazard as this is a waste that'll be disposed off

4 0
3 years ago
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