Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Add-On Interest Loan. Beth has just borrowed $5,200 on a four-year loan at 9 % simple interest. Using the simple interest method, her payments would be $129.40. What if Beth had made the same loan as an add-on interest loan? How would her payments differ? Why is there a difference?
With an add-on interest loan, Beth's payments would be $_?_
If Beth had made the same loan as an? add-on interest? loan, the payments would differ by $17.93—the difference between the? add-on interest payment of ?$147.33 and the simple interest payment of ?$129.40. Even though the same interest rate is used for both? methods, the? add-on method is more costly because the interest payment is not reduced over time as Beth pays off the? loan, while the interest component of the monthly? payment: ??
A. decreases using the simple interest method.
B. remains constant using the simple interest method.
C. increases using the simple interest method.
Lauren is a college sophomore majoring in business. This semester Lauren is taking courses in accounting, economics, management information systems, public speaking, and statistics. The sizes of these classes are, respectively, 340, 60, 35, 70, and 7..
Evaluate the potential gains and losses for forwards, futures, call options, put options, and swaps. Outline and describe the different risks that each type of derivative contract faces. Describe different methods of valuing derivatives. Assess the s..
Sambonoza Enterprises projects its sales next year to be $5 million and expects to earn 5 percent of that amount after taxes. The firm is currently in the process of projecting its financing needs and has made the following assumptions (projections):..
Your parents will retire in 14 years. They currently have $270,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds?
Define the term "capital intensity." Assuming all other elements are held constant, how would a decline in the capital intensity of a firm affect additional funds needed (AFN)? Would economies of scale combined with rapid growth affect capital in..
Which statement regarding Mcdonald's competitive advantages is true?
What is the present value of the following future amount? $340,589 to be received 15 years from now, discounted back to the present at 3 percent, compounded annually. Round to 2 decimals
Nally, Inc., is considering a project that will result in initial aftertax cash savings of $6.8 million at the end of the first year, and these savings will grow at a rate of 3 percent per year indefinitely. What is the maximum cost Nally would be wi..
Saint and Lewis Investment Management (SLIM) Inc. is considering purchasing bonds to be issued by Caterpilar Inc. The bonds have a face value of $10,000 and a coupon rate of 6%. The bonds will mature 10 years after they are issued. The issue price is..
Find the following values. Compounding/discounting occurs annually. Round your answers to the nearest cent. An initial $700 compounded for 10 years at 8%. The present value of $700 due in 10 year at a discount rate of 8%. Define present value. The pr..
Short term interest rates are more volatile than long-term interest rates, so short-term bond prices are more sensitive to interest rate changes than are long-term bond prices. Is this statement true or false? Explain.
Discuss three main organizational forms used in forming a business.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd