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snow_tiger [21]
3 years ago
8

Emilio’s accountant told him that if he continues to pay $50 a month on his credit card, it will take him 42 years to pay off hi

s current balance (assuming the interest rate doesn’t change and assuming he doesn’t charge anything else on that card). His credit card interest rate is 18.99%. What is his balance?
Business
1 answer:
SIZIF [17.4K]3 years ago
3 0

Answer:

$3,158.40  

Explanation:

The current balance on his credit card is the present value of $50 payable per month over 42-year period as shown below:

PV=monthly payment*(1-(1+r)^-n/r

PV=the unknown

montly paymet=$50

r=monthly interest rate= 18.99%/12=0.015825

n=number of monthly payments=42*12=504

PV=$50*(1-(1+0.015825)^-504/0.015825

PV=$50*(1-(1.015825)^-504/0.015825

PV=$50*(1-0.000365827)/0.015825

PV=$50*0.999634173/0.015825

PV=$3,158.40  

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The delivered-equipment cost for a fully equipped CNC machining system is $4.2 million. The direct cost factor is 1.52 and the i
Gemiola [76]

Answer: $14.5 million

Explanation:

The following information can be gotten from the question;

Total equipment cost = $4.2 million

Direct cost factor = 1.52

Indirect cos factor = 0.37

The total plant cost will then be calculated as:

= 4.2 × (1 + 1.52) × (1 + 0.37)

= 4.2 × 2.52 × 1.37

= 14.5

Therefore, the total plant cost is $14.5 million

4 0
3 years ago
Cheryl bought her home three years ago for $217,000. Assuming her home appreciated at the 3% rate typical of her current market,
Setler79 [48]

Answer:

$237,121.76

Explanation:

Compounding is the computation of the future value of a present amount while the opposite of compounding which is the determination of a present value of a future amount is discounting. the relationship between present and future value is given as

Fv = Pv (1 + r)^n

where

Fv = future value

Pv = Present value

n = time

r = rate

Fv = 217000(1 + 0.03) ^3

= $237,121.76

The worth of the home purchased 3 year ago now is $237,121.76

5 0
4 years ago
All of the following would be listed as surplus items on the U.S. balance of payments international accounts except
allochka39001 [22]

Answer:

The correct answer is B: U.S.​ tourists' expenditures in foreign countries.

Explanation:

To be listed as a surplus in the U.S. balance of payments, it needs to be an entry of money to the economy. The option B is the only one that does not meet the requirements. U.S.​ tourists' expenditures in foreign countries mean an exist of money to other countries.

7 0
3 years ago
Electronic communication:_____.
otez555 [7]
E. You can send a presentation via email instead of having to fly to a customer.
5 0
3 years ago
Based on current dividend yields and expected capital gains, the expected rates of return on portfolios A and B are 12% and 16%,
monitta

Answer:

Alpha for A is 1.40%; Alpha for B is -0.2%.

Explanation:

First, we use the CAPM to calculate the required returns of the two portfolios A and B given the risks of the two portfolios( beta), the risk-free return rate ( T-bill rate) and the Market return rate (S&P 500) are given.

Required Return for A: Risk-free return rate + Beta for A x ( Market return rate - Risk-free return rate) = 5% + 0.7 x (13% - 5%) = 10.6%;

Required Return for A: Risk-free return rate + Beta for B x ( Market return rate - Risk-free return rate) = 5% + 1.4 x (13% - 5%) = 16.2%;

Second, we compute the alphas for the two portfolios:

Portfolio A: Expected return of A - Required return of A = 12% - 10.6% = 1.4%;

Portfolio B: Expected return of B - Required return of B = 16% - 16.2% = -0.2%.

8 0
3 years ago
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