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azamat
4 years ago
13

A friend wants to borrow money from you. He states that he will pay you $3,900 every 6 months for 7 years with the first payment

exactly 7 years and six months from today. The interest rate is an APR of 6.2 percent with semiannual compounding. What is the value of the payments today
Business
1 answer:
Mila [183]4 years ago
8 0

Answer:

Amount paid today will be equal to $6165.163

Explanation:

We have given initial payment P=3900 $

Rate of interest r = 6.2%

Time is given 7 years and 6 months

As interest is given semiannually

So total time period = 2×7+1 = 15 period

Rate of interest r=\frac{6.2}{2}=3.1 %

Amount after 7 years 6 months will be equal to A=P(1+\frac{r}{100})^n

A=3900(1+\frac{3.1}{100})^{15}=6165.163 $

So amount paid today will be equal to $6165.163

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Arisa [49]

Answer:

there was inflation

Explanation:

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In the context, Barbara usually buys the same market basket every week at a price of $ 60. But this week she could not buy the market basket even though she had $ 60 with her. This is because the price of the market basket increased this week due to inflation and now cost more than $60. So Barbara could not buy the market basket.

4 0
3 years ago
Morris owns a bicycle store. he often leaves daniel in charge of the store. one saturday evening, after daniel leaves the store,
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Hope this helps! :)
3 0
4 years ago
Read 2 more answers
Suppose you have $200 with which you can buy shares of stock from twocompanies: ABC Hot Chocolate Company and XYZ Lemonade. Each
Dimas [21]

Answer:

$40?

Explanation:

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4 years ago
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Answer:

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When the market risk premium rises, stock prices will ________.A. riseB. fallC. recoverD. have excess volatility
lesya692 [45]
The answer is either A or B so imma say go with A. Hope this helps you out :)
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