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Aleonysh [2.5K]
2 years ago
14

a debt of $1,000 is incurred at t 5 0. What is the amount of four equal payments at t 5 1, 2, 3, and 4 that will repay the debt

if money is worth 10 percent compounded per period
Business
1 answer:
harina [27]2 years ago
7 0

Answer: $315.47

Explanation:

As this requires equal annual payments, it makes it an annuity. The $1,000 debt will be the present value of the annuity so a present value of annuity formula can be used:

1,000 = Annuity * ( 1 - ( 1 + rate) ^ -n) / rate

1,000 = Annuity * ( 1 - ( 1 + 10%)⁻⁴ ) / 10%

1,000 = Annuity * 3.169865

Annuity = 1,000/3.169865

Annuity = $315.47

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Renata's US-based lifestyle company decides to invest in a company based in France that specializes in health and wellness. This
Svetlanka [38]

People often make investments the health and wellness sector. This would be an example of foreign direct investment.

<h3>What is a foreign direct investment (FDI)?</h3>

This is known as a purchase of an interest that a firm is involved in. Here, the company by a company or an investor are found outside its borders.

The 3 types of FDI are;

  1. Horizontal FDI
  2. Vertical FDI
  3. Conglomerate FDI

It is simply a business decision to get or buy a good amount of stake in a foreign business as in the case with Reneta.

Learn more about foreign direct investment from

brainly.com/question/1125884

7 0
2 years ago
The risk-free rate of return is 4%, the required rate of return on the market is 10%, and High-Flyer stock has a beta coefficien
Bess [88]

Answer:

the share should sell at $46

Explanation:

We use the CAPM method to know the required return of the capital

Ke= r_f + \beta (r_m-r_f)

risk free 0.04

market rate 0.1

beta(non diversifiable risk) 2

Ke= 0.04 + 2 (0.06)

Ke 0.16000 = 16%

Now we calculate with the dividends grow model the intrinsic value of the share:

\frac{divends}{return-growth} = Intrinsic \: Value

\frac{4.60}{0.16-0.06} = Intrinsic \: Value

$4.6/0.1 = $46

3 0
3 years ago
In a free market​ system, ____. A. central planning determines supply B. government forces primarily determine prices C. most ne
natka813 [3]

Answer: Option E

Explanation: In a free market system the prices of goods and services produced are determined by the market forces of demand and supply. This are also known as open market.

The intervention of govt. in regulating such markets is very minimal. Thus, the control in such markets stands in hands of private owners. Therefore, the private owners produce with the single aim of profit maximization in such economies.

Hence we can conclude that the right option is E.

4 0
3 years ago
How would you characterize Semler's early leadership Style according to the article Leadership That GetsResults? Explain?
horrorfan [7]

Answer:

Semler's early leadership Style was the coercive one. He expected a lot from his employees believe in micromanaging his team. He always do overtime and expects the same from his employees/team as well.

Explanation:

Semler's early leadership Style showed that he wanted immediate success and be bossy in terms of selecting and firing the employees.

3 0
3 years ago
The matching concept a. determines that expenses related to revenue be reported at the same time the revenue is reported b. addr
OLga [1]

Answer:

The correct answer is letter "A": determines that expenses related to revenue be reported at the same time the revenue is reported.

Explanation:

According to the matching accounting principle, during the same accounting period, the revenues and expenditures needed to generate such revenues have to be recorded. This is part of the accrual accounting method that specifies expenses and revenue must be recorded when incurred not when cash is received.

6 0
3 years ago
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