Answer:
$23,088.62
Explanation:
We must determine the present value of Liam's investment discounted by his opportunity cost rate. The present value formula is:
PV = FV / (1 + r)ⁿ
PV = $52,000 / (1 + 7%)¹² = $52,000 / 2.2522
PV = $23,088.62
The right answer for this question is C - if someone wants the credentials of skilled training, but in less time than a four-year degree, then they should consider an apprenticeship. The purpose of apprenticeships if to provide individuals with a certificated skill set, whilst allowing them to gain real-world experience that will heavily benefit them in a future career.
Answer: Options (A), (C) and (D) are correct
Explanation:
Yield to maturity ,is referred to as or known as theoretical IRR or internal rate of return that is earned by a person or investor who tends to buy that bond at the respective market price, also assuming the bond is enclosed till maturity, and further knowing that coupon and other principal payments are to be made on the schedule. YTM is referred to as or known as discount rate on which sum of future cash flow tends to be equal to current price of bond.
Answer: (a) 22.50
Explanation:
Payment severance (PV) = 375,000,
Payment = -35,000,
Interest rate = 7.5%
FV = 0.
Evaluating these numbers using a calculator to solve for number of periods will give us the result as 22.5 years.
Answer:
B. Installment credit
Explanation:
Installment credit refers to the type of loan where the borrower opts to repay in regular and fixed amounts. Installments are the small periodic payments that the borrower makes to the lender. Typically, installments are made monthly.
In installment credit, the repayment period may range from a few months to years. The installment amount has an interest and principal components.
