Taken out which requires an annual interest payment

Assignment Help Business Economics

Reference no: EM131108238

A loan of $100,000 is taken out which requires an annual interest payment of 6% of the outstanding principal. If no principal payments are made over time and inflation is 3.1% per year, the payment at the end of year four is:

A real dollar cash flow of $6,000 and an actual dollar cash flow of $5,310.

An actual dollar cash flow of $6,000 and a real dollar cash flow of $5,310.

An actual dollar cash flow of $6,779 and a real dollar cash flow of $6,000.

A real dollar cash flow of $5,310 and an actual dollar cash flow of $6,779.

Reference no: EM131108238

Questions Cloud

Depicted in the standard income-leisure model : If an individual earns an overtime pay for over 8 hours of work, then how can this be depicted in the standard income-leisure model? In case of higher wages for overtime work is the theory of backward bending labor supply curve always violated? Assum..

Explain bubble sort and cocktail sort : Explain bubble sort and cocktail sort and also give example of both to understand betterand which one is better to use.

Marginal rate of substitution for leisure and income : Shane is required by his employer to work a standard eight-hour work day. Suppose his marginal rate of substitution (MRS) for leisure and income is less than the wage rate at this level of work. Comment about the nature of Shane’s employment.

Recessions often lead to calls for protectionist measures : Recessions often lead to calls for protectionist measures to preserve domestic jobs. Suppose that a country that is in a recession imposes restrictions that sharply reduce the amount of goods imported by the country. Using the Keynesian AS-AD model, ..

Taken out which requires an annual interest payment : A loan of $100,000 is taken out which requires an annual interest payment of 6% of the outstanding principal. If no principal payments are made over time and inflation is 3.1% per year, the payment at the end of year four is:

Prepare a schedule to compute both basic and diluted earning : Discuss how the schedule would differ if the security was convertible preferred stock.

Government play in creating the financial crisis : What role did the government play in creating the financial crisis? What role did Fannie Mae and Freddie Mac play in the financial crisis? Could this have been prevented? How? How the government have responded to the crisis both in monetary policies ..

Reduce the size of the corn surplus : Suppose that the government has been supporting the price of corn. It's free market price is $2.50 per bushel, but the govt. has been setting a support price of $3.50 per bushel. Which of the following are ways that the government might try to reduce..

World class operations management method : Decision trees are another important if challenging world-class operations management method which operations managers should understand and with which other managers should be familiar

User Account

All Pages