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natka813 [3]
3 years ago
8

Chancellor Ltd. sells an asset with a $1 million fair value to Sophie Inc. Sophie agrees to make six equal payments, each to be

paid one year apart, commencing on the date of sale. The payments include principal and 6% annual interest. Compute the annual payments. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) $166,651. $203,351. $135,252. $191,852.
Business
1 answer:
cupoosta [38]3 years ago
7 0

Answer:

$191,852

Explanation:

The computation of the annual payment is shown below

Given that

Loan Amount (P) = $1,000,000

Annual Interest Rate (r) = 6.00% per year

Loan Period (n) = 6 Years

Now

The Annual Lona Payment is

= [P × {r × (1 + r)^n}] ÷ (1 + r)^n - 1

= [$1,000,000 x {0.06 x (1 + 0.06)^5}] ÷ [(1 + 0.06)^6 - 1]

= $191,851.5363

= $191,852

Hence, the annual payment is $191,852

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Answer and explanation:

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3 years ago
The economic order quantity (EOQ) model is a classical model used for controlling inventory and satisfying demand. Costs include
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Answer:

Check the explanation

Explanation:

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Step 1: Setup a spreadsheet on Excel, as shown in the first and second attached images below:

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3 years ago
The Taylor rule specifies how policymakers should set the federal funds rate target. Suppose that U.S. real GDP rises 1% above p
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Answer:

FED raise the federal funds rate target by 0.5%

FED raise the federal fund rate target by 2%

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6 0
3 years ago
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Answer:

Hi!! I hope you are great. Thanks for the pts...

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Over a four-year period, LaKeisha Thompson purchased shares in the Oakmark I Fund. Using the following information, answer the q
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Answer:

LaKeisha Thompson

a. At the end of four years, the total amount invested is:

= $6,000

b. At the end of four years, the total number of shares purchased is:

= 166.81

c. At the end of four years, the average cost for each share is:

= $35.97.

Explanation:

a) Data and Calculations:

Investments in Oakmark I Fund:

Year            Investment        Price      Number

                      Amount     per share    of share

Feb 2008        $1,500           $40        37.50

Feb 2009          1,500             30        50

Feb 2010           1,500             34        43.60

Feb 2011            1,500             42        35.71

Total               $6,000                        166.81

Average cost per share = $35.97 ($6,000/166.81)

7 0
3 years ago
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