User Account

All Pages

Determine the annual payments

Assignment Help Microeconomics
Reference no: EM131697175

Question: Kersey Manufacturing Co., a small fabricator of plastics, needs to purchase an extrusion molding machine for $120,000. Kersey will borrow money from a bank at an interest rate of 9% over five years. Kersey expects its product sales to be slow during the first year, but to increase subsequently at an annual rate of 10%. Kersey therefore arranges with the bank to pay off the loan on a "balloon scale," which results in the lowest payment at the end of the first year and each subsequent payment being just 10% over the previous one. Determine the five annual payments.

Reference no: EM131697175

Questions Cloud

Pay out a liquidating dividend : At the end of the four years, the company will also pay out a liquidating dividend. If the discount rate is 12 percent, and the current share price is $75.
Wrute a summary of a specific line of thought : In a short essay (1-page, single-spaced, 12-point font) critically respond to one of our class readings. This will involve, first, a summary of a specific line.
What is the current share price : Sea Side, Inc., just paid a dividend of $2.28 per share on its stock. The growth rate in dividends is expected to be a constant 3.3 percent per year.
What is the monthly payment on vito loan : What is the monthly payment on Vito's loan? What will the balance on Vito's loan be at the end of the fourth year.
Determine the annual payments : Kersey therefore arranges with the bank to pay off the loan on a "balloon scale," which results in the lowest payment at the end of the first year.
What are your thoughts on learning to fail : Compare and contrast Bennet's "On Campus, failure is on the syllabus" to Rinaldi's "(It's great to) suck at something."
Linkage between price elasticity of demand and total revenue : Describe the linkage between price elasticity of demand and total revenue using a demand curve. Use this linkage to explain the Clifton Suspension Bridge.
Remoteness can affect uptake of health services : Remoteness can affect uptake of health services. Design a study to investigate the effect of an online health service or mobile application for sexual healthin
How much consumer surplus does bert get : If the price of a bottle of water is $4, how many bottles does Bert buy? How much consumer surplus does Bert get from his purchases?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd