Answer:
a). The amount of the short-term loan=$128,181.82
b). The amount of the long-term loan=$156,666.67
Explanation:
The total annual interest to be paid can be expressed as;
I=PRT
where;
I=annual interest
P=principal amount of the note
T=number of years
a). For the short-term note's case;
I=$14,100
P=unknown
R=11%
T=1 year
replacing;
14,100=P×(11/100)×1
0.11 P=14,100
P=14,100/0.11
P=128,181.82
The amount of the short-term loan=$128,181.82
b). For the long-term note's case;
I=$14,100
P=unknown
R=9%
T=1 year
replacing;
14,100=P×(9/100)×1
14,100=P×0.09
0.09 P=14,100
P=14,100/0.09
P=156,666.67
The amount of the long-term note=$156,666.67
Formula for the monthly payment:
M = P * r * ( 1 + r )^n / (( 1 + r )^n + 1 )
where: P = $100,000 r = 0.12 : 12 = 0.01 n =12 * 5 = 60
M = 100,000 * 0.01 * ( 1 + 0.01 )^60 / (( 1 + 0.01 )^60 + 1 ) =
= 1,000 * ( 1.01 )^60 / (( 1.01 )^60 + 1 ) =
= 1,000 * 1.8167 / 0.8167 = 1,000 * 2.22444 =
= $2,224.44
The monthly payment is $2,224.44.
Answer:
The correct answer is letter "A": market share.
Explanation:
Market share is calculated by taking a company's sales over a period and dividing it by the total sales of the industry over the same period. This measure is used to give the business and its rivals a general idea of the size of the company regarding its overall sector.
Answer:
Nominal gross domestic product (GDP) measures the market value of all the new and legal goods and services produced in a country within a year. While real GDP adjusts nominal GDP to inflation. Since inflation is generally positive, real GDP decreases as inflation increases. The higher the inflation rate, the larger the difference between nominal and real GDP. Depending on which year is used as base year (year 0), the difference that existed in 2010 can be either significant or not.
The difference = ($14,657 / $13,245) - 1 = 10.66%, which means that nominal GDP was 10.66% higher than real GDP. If the base year is 2000 or even 2005/6, the difference is very small since the accumulated inflation would only be 10.66% for all these years. But if the base year was 2008 or even 2009, then the inflation rate is high.
Answer:
-0.11% per year
Explanation:
Here, we want to calculate real interest rate.
Firstly, we calculate the inflation rate
mathematically the inflation rate = (cpi at the end of year - cpi at the beginning of year)/cpi at the beginning of year * 100%
Inflation rate = (232-225)/225 * 100% = 3.11%
we now proceed to calculate the real interest rate
mathematically, real interest rate = Nominal interest rate - inflation rate
from the question, nominal interest rate = 3%
real interest rate = 3% - 3.11% = -0.11%
This means that the real interest rate earned by sally is -0.11% per year
