Reference no: EM13885350
Brian invested $1,000 five years ago and earns 4% interest per annum on his investment. By leaving the interest earnings in the account, he increases the amount of interest he earns each year.
What is the term for this effect?
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Government to manufacture missile retrieval system
: Jenstar had secured a contract from the U.S. government to manufacture a missile retrieval system. The contract required that Jenstar provide a qualification report showing that the system was tested and met all the government specifications. Before..
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What is the present value of the annuity
: A 10-year annuity pays $2,500 per month, and payments are made at the end of each month. The interest rate is 9 percent compounded monthly for the first four years, and 7 percent compounded monthly thereafter. What is the present value of the annuity..
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Company expects this equipment will lead to cash flows
: Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $815,822, $863,275, $937,250, $1,020,110, $1,212,960, and $1,225,000 over the next six years. If the appropriate disco..
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What is the internal rate of return on this project
: Quick Sale Real Estate Company is planning to invest in a new development. The cost of the project will be $23 million and is expected to generate cash flows of $14,000,000, $11,750,000, and $6,350,000 over the next three years. The company's cost of..
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What is the term for this effect
: Brian invested $1,000 five years ago and earns 4% interest per annum on his investment. By leaving the interest earnings in the account, he increases the amount of interest he earns each year. What is the term for this effect?
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What is the interest rate per month for the loan
: George bought a car for $26,500. He made a down-payment of $4,500 and financed the rest on a 5-year term with a monthly payment of $575. What is the interest rate per month for the loan? What is the nominal interest per year?
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Impact the pure premium or risk premium
: The Medical Loss Ratio provision of the ACA requires insurers to spend a minimum of 80% of premium dollars on claims and enrollee expenditures 20% of premium dollars can be allocated to administration, marketing, and profits. For this given policy, i..
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An investment project provides cash inflows
: An investment project provides cash inflows of $875 per year for eight years. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16). Enter "0" if the payback period is never.) What is the project payback period..
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Approached to bid on a contract to sell voice recognition
: Your company has been approached to bid on a contract to sell 3,900 voice recognition (VR) computer keyboards a year for four years. Due to technological improvements, beyond that time they will be outdated and no sales will be possible. Additionally..
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