Answer:
Using the formula to calculate the monthly payment: (rate*Present Value) /(1-(1+rate)^(-period). You can use excel to do the calculations with the function: PMT(rate;period;present value)
The amount will be US$ 1,694.57.
To do the calculation you have to remind that the rate must be in the same period, that means that if the interest is in a monthly period the period must be monthly too. In this case the period have to be 84 months (which is 7 years).
Answer:
A) the desires and objectives of the owners and agents conflict.
Explanation:
An agency problem occurs when there is conflict of interest in a situation where one part is expected to act in the best interest of the other.
In finance this usually occurs between the management and stockholders, the manager is an agent for the stockholder (principal). The manager is expected to run the business and make profit for the principal and may instead maximise his own wealth.
Agency problem arises when an agent is motivated to act in his own interest and not fully for his principal.
Answer:
$ 53,545.17 ( approx )
Explanation:
Since, the future value formula is,
Where,
P = Invested amount,
r = rate of increasing per year,
t = number of periods,
Here, A = 275000,
Annual rate = 4.65% = 0.0465,
So, rate per month, r =
Number of years = 3,
So, the number of months, t = 12 × 3 = 36,
By substituting the values in the above formula,
Hence, he needs to invest approximately $ 53545.17.
Answer: D) if either the price level rises or the quantity of final goods and services produced rises.
Explanation:
Economic growth is caused by an increase in aggregate demand (AD). If there is spare capacity in the economy, then an increase in AD will cause a higher level of real GDP.
Answer:
d. 0.2
Explanation:
D = 500
R = 100
D*rr = R
500*rr = 100
rr = 100/500
= 0.2
Therefore, The required reserve ratio is a 0.2