When consumer confidence increases, ad increases. as a result, the price level increases, and eventually the SRAS decrease.
Because a upward thrust in self-assurance is related to higher consumption and funding call for, it's going to lead to an outward shift inside the advert curve, and a pass of the equilibrium, from E0 to E1, to a better amount of output and a better price stage.
An unexpected exchange that shifts ad; a nice demand shock (along with a boom in customer self-belief) increases ad, however, a terrible demand surprise decreases the advert. A sudden exchange that shifts SRAS; a fine supply shock increases SRAS, but a poor supply surprise decreases SRAS.
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the individual designated by a business organization to receive service of process for the business is known as: group of answer choices the general manager. the chairman of the board of directors. the attorney for the corporation. the chief operating officer (ceo.) the registered agent.
The registered agent is the professional responsible for receiving the process service for the business.
What is a registered agent?It is an individual who has a central responsibility for maintaining the compliance of organizational processes through compliance with federal, state and local laws.
This professional is responsible for receiving the company's official documents and communications, analyzing them and forwarding them to the appropriate person in the company.
Therefore, there are several benefits for companies that have a registered agent, the main one being the company's legal compliance, which is essential for it to be able to carry out its operations effectively and transparently, demonstrating reliability to its stakeholders.
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the process of developing an approximation of monetary resources needed to complete project activities is known as:
the process of developing an approximation of monetary resources needed to complete project activities is known as estimate cost.
The cost that will be incurred to create a product or construct something is projected as an estimated cost. This sum is determined either as part of a sales bid when attempting to sell to a customer or as part of the capital budgeting process for an internal project.
Predicting the quantity, cost, and price of the resources needed to execute a task within the project's scope is the goal of cost estimating. Cost estimates are used to influence your work and budget planning process as well as to bid on new business from potential clients.
The options for the question are:
a. determine a budget.
b. estimate resources.
c. estimate cost.
d. estimate activities.
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1 points time remaining 1 hour 29 minutes 46 seconds01:29:46 item 1 time remaining 1 hour 29 minutes 46 seconds01:29:46 wfo corporation has gross receipts according to the following schedule: year 1 $ 25.00 million year 2 $ 21.00 million year 3 $ 21.00 million year 4 $ 29.50 million year 5 $ 33.00 million year 6 $ 24.00 million if wfo began business as a cash-method corporation in year 1, in which year would it have first been required to use the accrual method?
If WFO began business as a cash-method corporation in year 1 then in Year 6 would it have first been required to use the accrual method.
Corporations that have $25 million or less in annual average gross receipts for tax purposes can use the cash methods of accounting. Those Corporations that have not been in existence for at least three years can compute average annual gross receipts over the years they have been in existence.
One can calculate the annual average gross receipt as the person who is paying the taxes his gross receipt can be made annually by multiplying the gross receipts of the short tax year by 12 and then it is divided by the multiple of the number of months which is present in the short tax year. Hence, the three years preceding Year 6 have annual average gross receipts of $26.05 ((25.25+26.20+26.70)/3) million.
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Money neutrality suggests that an increase in the money supply leads to _____ in price level and inflation and _____ in real gdp.
Money neutrality suggests that an increase in the money supply leads to an increase in price level and inflation and no change in real GDP.
Money neutrality is a theory that suggests that even though an increase in revenue can lead to a price level increase, it does not have any effect on the GDP. In another word, an increase in monetary value does not affect the economic equilibrium.
According to the theory, all markets clear continuously. Relative price adjusts toward equilibrium. Changes in the money supply don't appear to change the conditions in the economy because it neither create nor destroy machine and don't affect existing knowledge and skill, so aggregate supply should remain constant.
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Leon contracts to install automatic watering troughs in Kendall’s dairy barn. Leon then becomes seriously ill and contracts with Jason to install the troughs. Jason is unreliable and never shows up to install the troughs. Kendall hires Izzy to do the installation. To recover for any loss on the deal, Kendall can sue
a. No one. B. Jake only. C. Leon only. D. Jake and Leon
In a case whereby Leon contracts to install automatic watering troughs in Kendall’s dairy barn then Leon then becomes seriously ill and contracts with Jason to install the trough To recover for any loss on the deal, Kendall can sue d - Jake and Leon.
What are contracts ?Contract can be described as the agreement that can exist between two or more people, it can be considered as the one that can bind under the law , and any breech of the agreement can bring about legal judgement of the part.
In the case of above we can see that the duty has been delegated to Jake and Leon which implies that they can be sued.
Therefore, option D is correct.
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which organizational structure is characterized by low flexibility, low adaptability, and low problem recognition?
The organizational structure that is characterized by low flexibility, low adaptability, and low problem recognition is structural mobility.
The occurrence of structural mobility is the ascent of a person up the social scale. A person descends the class ladder. Due to sociocultural changes, a sizable group moves up or down the class ladder.
Structural mobility is the term used to describe social changes that result in a significant number of people moving up or down the social scale. When openings are made at the top by downward mobility, exchange mobility occurs.
The capacity to move around and use one or more means of transportation to get from one place to another to fulfill everyday demands is referred to as mobility. As a result, it is distinct from accessibility, which denotes the capacity to gain access to or arrive at a desired service or activity.
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which of the following is not a reason why firms use budgets? a. operating leverage. b. performance evaluation. c. coordination. d. planning.
Operating leverage is not a reason why firms use budgets. A budget is a written plan that outlines how you want to spend your money each month. A budget ensures that you have adequate money each month.
A budget demonstrates how much money you make. Budgeting is the process of anticipating a company's revenues and expenses for a given period, with examples being the sales budget created to make an estimate of the company's sales and the production budget prepared to project the firms output, among others. Budgeting ensures that you do not spend more than you earn and allows you to plan for both short-term and long-term needs.
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which of the following audit committee activities is of the greatest benefit to the internal audit activity? assurance that the external auditor will rely on the work of the internal audit activity whenever possible. determine whether scope limitations impede the ability of the internal audit activity to execute its responsibilities. review and endorsement of all internal auditing engagement communications prior to their release. review and approval of engagement work programs.
The following audit committee activities is of the greatest benefit to the internal audit activity Be in considerable detail.
This answer is correct. The form and content of policies and procedures are dependent upon the size and structure of the internal audit activity and the complexity of its work (Inter. Std. 2040). Thus, the policies of a relatively large internal audit activity are likely to be more detailed than those of a relatively small internal audit activity.
The finest gain of inner audit is that it allows withinside the control of the organization effectively. Internal audits will spotlight any wrong methods which are observed and assist in rectifying the methods that cause development in manner efficiency.
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equipment that had been acquired several years ago by a special revenue fund at a cost of $40,000 was sold for $15,000 cash. accumulated depreciation of $30,000 existed at the time of the sale. the journal entry to be made in the special revenue fund will include
a $5,000 credit to Other Financing Sources.
What are journal entries?
A business transaction is recorded in your books as a journal entry. For every transaction, double-entry bookkeeping requires at least two journal entries. A bookkeeper keeps track of all the changes that a transaction can bring about in a business with journal entries.
What's an example of a journal entry?
The country's purchase of machinery, for which the machinery account will be debited and the cash account will be credited, is an illustration of a journal entry.
What three entries are in the journal?
Journal entries fall into three main categories: adjusting, compounding, and reversing
What are credit and debit?
A transfer of value into an account is referred to as a debit entry, while a transfer of value out of an account is referred to as a credit entry. Value is transferred from credited accounts to debited accounts with each transaction.
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the manager at lampshades limited reported the standard direct material cost per lampshade was 1.2 yards of cloth of input allowed per each lampshade (output unit) manufactured, at $20 standard price per yard. what is the standard direct material cost per lampshade?
1.2 x $20 = $24 Standard cost per output unit for each variable direct cost per unit = Standard input allowed for one input unit × Standard price per input unit.
A cost is the value of money that has been used up to produce something or supply a service and is thus no longer available for use in production, research, retail, and accounting. In business, the cost may be one of acquisition, in which case the amount of money spent to obtain it is recognized as cost. In this scenario, money is the input used to purchase the item.
This acquisition cost could be the total of the cost of production incurred by the original producer and additional transaction expenses incurred by the acquirer over and above the price paid to the producer. Typically, the price includes a profit margin above the cost of manufacture.
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you want to increase the relevance of a search ad so it's more meaningful to potential customers and provides value-added information to their searches. what two actions might improve the relevance of your ad? (choose two.) select 2 correct responses selecting only relevant languages in campaign setup. posting transparency statements on the website. selecting distinct geographic areas. changing the ad's call-to-action statement. rewriting the landing page for clarity.
By selecting only relevant languages during campaign setup as well as specific geographic places, search ads become more relevant to potential customers and provide them with information that is useful to their searches.
Digital advertisers still struggle to generate impressions and earn clicks on Ads in order to get visibility and bring in new business.And although advertisers may literally be able to pay their way to the top, there are alternative techniques to generate clicks without blowing the entire budget.
Ad visibility and advertising ROI can both be improved by increasing keyword and ad relevance.Later, we'll discuss how to make adverts more pertinent, but first, let's define the term.
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of the four classes of investment identified by ross and beath, which involves upgrading core it infrastructure and applications, reducing the costs, or improving the quality of it services?
Renewal involves upgrading core infrastructure and applications, reducing costs, or improving the quality of its services.
In economics, a carrier is an intangible commodity. more, in particular, services are an intangible equivalent of monetary goods. service provision is frequently a monetary hobby in which the purchaser does now not typically, except with the aid of a one-of-a-kind contract, attain one-of-a-kind ownership of the factor bought.
The carrier also referred to as the tertiary quarter, is the 1/3 tier in the 3-region economy. instead of product manufacturing, this sector produces services preservation and upkeep, training, or consulting. Examples of provider-area jobs encompass housekeeping, excursions, nursing, and coaching.
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when you receive an offer on a listing for less than asking price, which of these would be the least effective course of action to take?
'Giving the sellers the price over the phone so they can think about it before you meet with them' would be the least effective course of action to take. Hence option D pertains to the right answer choice.
An offering price refers to the price at which certain products and services are offered for sale. In investments and finance, the offering price most often is defined as the per-share value at which 'publicly-issued securities' are made available for purchase by the investment bank during an IPO or initial public offering.
Based on the given context where you receive an offering price on a listing for less than the asking price, the least effective course of action to take would be giving the sellers the price over the phone so they can make a consideration over it before you meet with them.
"
Complete question is as follows:
when you receive an offer on a listing for less than asking price, which of these would be the least effective course of action to take?
A. Study the other terms of the offer so you can maximize the offer's benefits and minimize the lower price.
B. Set up a face-to-face meeting with the sellers as soon as possible.
C. Prepare additional documentation to take to the presentation.
D. Give the sellers the price over the phone so they can think about it before you meet with them.
"
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advantages of the payback period include that it is easy to calculate, easy to understand, and that it is based on cash flows rather than on accounting profits. group of answer choices true false
This assertion is accurate. The payback period has several benefits, such as being simple to calculate and comprehend, and being based on cash flows rather than accounting profits.
What Is Capital Budgeting?This concern has to do with capital budgeting, a method used by companies to evaluate investments including new initiatives, capital investments, equipment replacements, and other projects. Expected future cash flows are evaluated to determine whether investment is required (and frequently discounted).
There are numerous capital budgeting techniques, such as the payback period approach, internal rate of return technique, and net present value analysis (PPM). The latter approach is more widely used, simple to comprehend, and quick to calculate. In essence, the PPM involves assessing whether a project's payback period—the period of time (usually measured in years) required to recover the initial investment—falls within a minimal acceptable timeline. Either an undiscounted basis or a discounted basis can be used to conduct the review, which is more concerned with cash flows than accounting profits.
The assertion is accurate, as shown by the facts up top.
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When jason applied for a job as a heating and air conditioning technician, he was given a malfunctioning compressor and was asked to diagnose the problem. What type of selection tool does this represent?.
Option d.) Work sampling is the correct answer, sampling is the statistical technique used for determining the proportion of time spent by workers in various defined categories of activity.
Occupational sampling is a research technique that observes workers at random times and records their activity. The collected data can be converted into percentages showing the overall distribution of time in different categories.
The actual purpose of the work sample is to determine the percentage of time a worker spends in the various defined job her categories.
Here is the full question -
When Jason applied for a job as a heating and air conditioning technician, he received a faulty compressor and was asked to diagnose the problem. What kind of selection tool does this represent?
A. Application form
B. Personality test
C.Interview
D. Work sampling
E.Evaluation Center
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individual decision making is a good approach when: a. the leader has enough expertise to make a good decision. b. the decision will directly impact many agencies, individuals, or community members. c. commitment to the decision by other people is critical. d. the decision is complex with many possible solutions.
Individual decision making is a good approach when: a. the leader has enough expertise to make a good decision.
Why is individual decision-making good?
Individual decisions are those made during the decision-making process where an individual chooses the course of action to be taken in the business from a variety of choices, whereas collective decisions are those made through group discussions that result in group consensus.
Individual decision-making saves time, money, and energy since people typically make rapid, sane decisions. Group decision-making, however, takes a lot of time, money, and effort. Compared to collective decisions, individual decisions are more focused and logical.
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You are trying to decide whether to trade in your laser printer for a more recent model. Your usage pattern will remain unchanged, but the old and new printers use different toner cartridges. Are the following items relevant or irrelevant to your decision?.
The following items were relevant and irrelevant to our decision to buy a laser printer of new model:
a) the trade-in value of the old printer is: RELEVANT
b) paper costs are: IRRELEVANT
c) the difference between the cost of toner cartridges is: RELEVANT
d) the price of the new printer is: RELEVANT
e) the price you paid for the old printer is: IRRELEVANT
A trade-in value is the money that a dealer will leave you when you buy a new product replacing it with another one. In the case above, the trade-in value will have a significant impact on our decision whether to buy the new laser or not.
As paper costs will be the same for the old and the new laser printer, hence they are irrelevant.
The cost of toner cartridges will be different for the old and the new printer. Hence, it is relevant.
The price of the new printer will be a relevant factor in making the decision of buying a new one whereas the price of the old one will be irrelevant.
Although a part of your question is not missing, you might be referring to this question:
You are trying to decide whether to trade in your laser printer for a more recent model. Your usage pattern will remain unchanged, but the old and new printers use different toner cartridges. Are the following items relevant or irrelevant to your decision?
a) the trade-in value of the old printer is
b) paper costs are
c) the difference between the cost of toner cartridges is
d) the price of the new printer is
e) the price you paid for the old printer is
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sunland corporation reported net sales of $620000, $730000, and $806000 in the years 2016, 2017, and 2018, respectively. if 2016 is the base year, what percentage do 2018 sales represent of the base?30000 g
In the given case the percentage of sales would be :
Sales of base year 2016 = 620000
Sales of given year = 806000
% of sales of 2018 which represent the base = 806000/ 620000 X 100
= 130%
Therefore 130% represent the 2018 sales to the base year.
What do you mean by net sales?
Net sales is the result of gross sales minus returns, allowances, and discounts. A base year is the first of a series of years in an economic or financial index.
Net Sales = (Total Units Sold * Sales Price Per Unit) – Sales Returns – Discounts – Allowances
It affects gross profits and statement of income.
Therefore,130% represent the 2018 sales to the base year.
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blaylock plans to sell 94,000 units of product no. 794 in may, and each of these units requires three units of raw material. pertinent data follow. product no. 794 raw material actual may 1 inventory 11,900 units 29,900 units desired may 31 inventory 17,900 units 20,900 units on the basis of the information presented, how many units of raw material should blaylock purchase for use in may production?
Raw materials are considered a product cost for a manufacturing company because they are required to produce their goods. Typically, they vary.
A company's total manufacturing costs include raw materials, direct labor, and overhead.
For May production, blaylock should purchase b. 246,000 units of raw materials.
For the 85,000 units of product, we must first figure out how many units of raw materials are required, which will also be the raw materials used.
The following schedule can be used to figure out how many units of raw material blaylock needs to purchase: raw materials used = units of product * number of units of raw materials needed per unit of product Raw materials used = 85,000 units * 3 units of raw material needed per unit of product = 255,000 units of raw material.
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charter chemical needs to order more office supplies. the order quantity and specifications are routine, and the purchase is made from the same competent supplier at regular intervals, without any decision making process. charter will probably engage in a(n)
To buy more amounts, Charter will probably do a straight rebuy.
A straight rebuy is when a consumer purchases the same goods from the same provider in the same quantity and under the same terms.
Every morning, a large number of customers go to Starbucks to place the same exact coffee order. This is a prime example of a straight rebuy since all the order's elements remain the same. The customer buys the same item from the same supplier every day.
The choice to purchase the brand, item, etc. that you previously purchased rather than looking at other brands or items: Purchase decisions can be divided into three categories: new task purchasing, modified rebuy decisions, and straight rebuy decisions.
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an amortized loan is repaid with annual payments which start at $400 at the end of the first year and increase by $45 each year until a payment of $1480 is made after which they cease. if interest is 7.12% effective, find the amount of principal in the 14th payment.
The term of a loan is a set of regular payments that are made over a set amount of time. A portion of the initial principal is repaid in each payment, in addition to interest.
A loan amortization schedule is a comprehensive list of payment dates and the proportion of each payment that goes toward principal and interest.
The information requested in this question includes a term (N) of 1+1480-400/45 and an effective annual interest rate (i) of 4%.
25 years, or Excel can be used to create an amortization schedule that works backwards from the final payment amount. After the nth payment, we can see that the remaining balance is the same as the first balance in the (n+1) payment. The final balance is the sum of the initial balance, any applicable interest, and the payment amount.
After the thirteenth payment, we see that there is still a balance of $11,370.45.The principal repaid in the fourteenth payment, which is $985.00, plus $454.82 in interest, is $530.18, rounded up to the nearest cent.
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when dr. kracker introduces a new kracker product, it offers free samples in heb and other grocery stores. these efforts have a primary promotional objective of
These efforts have a primary promotional objective of attracting new customers towards the new Kracker product.
What is promotion?Any marketing communication designed to inform intended audience of the relative benefits of a certain good, service, idea, or brand is referred to as promotion in the marketing industry. Promotional communications are typically persuasive in nature. Both a cognitive and an emotive path can help marketers establish a distinctive spot in their target audience's minds. Promoting a brand seeks to raise interest in it, enhance brand loyalty, or improve sales. It was first documented in 1925 that the term "promotion" may be used to refer to "advertising or publicity." It could be a contraction of the word "sales promotion," which is a term connected to marketing communications and one of the many instruments utilized in that process.
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what is a common strategic mistake made when evaluating differences with competitors? group of answer choices
We believe we are distinct from competitors, but the customer says otherwise.
Why should a customer choose you over a rival?
It's possible that you offer something of a higher quality, a lower price, a superior set of features, or something that is completely unique. Determine the most significant advantages of your product or service that you offer that your rivals do not, or the aspects of your business that set you apart from them (faster delivery, lower prices, etc.).
But when we talk about a "competitor," what exactly do we really mean?
Any alternative that a customer considers when making a decision is a competitor.It's possible that your rival is a business that offers the same products as you do.
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stark company's most recent balance sheet reported total assets of $1,700,000, total liabilities of $900,000, and total equity of $800,000. its debt-to-equity ratio is:
The last balance sheet for the small company showed total assets of $1.7 million, total liabilities of $900,000, and total equity of $800,000. It has a 1.125 debt-to-equity ratio.
What does debt to equity ratio mean?
By dividing a company's total liabilities by the value of its shareholders, the debt-to-equity (D/E) ratio, which gauges its financial leverage, is calculated.
The D/E ratio is a crucial indicator in corporate finance. It measures the proportion of debt that a company is using to finance its operations as opposed to cash on hand. Debt-to-equity ratios fall under a specific category of gearing.
Calculation:
Debt to equity ratio equals debt to equity
Liabilities plus debt total $900,000
Equities totaling $800,000
debt to equity is equal to 900k/800k.
debt to equity is 1.125.
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while the four ps help us remember the basics components of the , they don't have significant relevance in the marketing process a. competitive benchmarking process b. marketing mix c. product development process d. production operation
Many processes were involved and can make significant relevance in a company’s marketing process. The four Ps can help us remember the basic components of the marketing mix.
What is Four P’s?
The Four Ps is a theory founded by Jerome McCarthy in 1960 in his Basic Marketing text. The four Ps stand for Product, Price, Place, and Promotion. This is the explanation of each component in the four Ps:
Price: company can set its price at a competitive level.Place: the company is in a strategic location so consumers can reach easier.Product: company can provide a quality product for its consumers.Promotion: the company is actively providing and spreading information about its products or services to consumers.Learn more about the five Ps in marketing at https://brainly.com/question/15635639
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in a service blueprint, an organization: a. audits the organization relative to its customers' use of its services. b. creates a flow chart of every step in the delivery of the service. c. audits each market segment relative to its lifetime value. d. determines how to deliver its services most efficiently.
Flow-charts every step in the delivery of the service.
What are Flow-charts?A flowchart is a graphical representation of a business process through a flowchart. It is used for a top-down understanding of how a process works, the steps that make up the process, the events that change the outcome, etc. When designing and planning a process, flowcharts help identify major steps while providing an overview of the process. Organize tasks chronologically and identify them by type. Processes, decisions, data, etc. Flowcharts are a great way to convey the logic of your system. Efficient Analysis: Analyze flowchart problems more efficiently. Easy Debugging and Efficient Testing: flowcharts help with debugging and testing.To learn more about Flow-charts from the given link :
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the following costs result from the production and sale of 4,800 drum sets manufactured by tight drums company for the year ended december 31. the drum sets sell for $330 each. variable costs plastic for casing $ 158,400 wages of assembly workers 470,400 drum stands 201,600 sales commissions 148,800 fixed costs taxes on factory 7,000 factory maintenance 14,000 factory machinery depreciation 74,000 lease of equipment for sales staff 14,000 accounting staff salaries 64,000 administrative salaries 144,000 required: 1. prepare a contribution margin income statement for the year. 2. compute contribution margin per unit and contribution margin ratio. 3. for each dollar of sales, how much is left to cover fixed costs and contribute to income?
1) 215850 is the contribution margin income statement for the year.
2)126 per unit is the computed contribution margin per unit and the contribution margin ratio is 38.18%
3) For each dollar of sales, 126 per unit is left to cover fixed costs and 38.18% contributes to income
1. Prepare a contribution margin income statement for the company.
Sales (4800*330) 1584000
Less: Variable expenses
Plastic for casing (158400)
Wages of assembly workers (470400)
Drum stands (201600)
Sales commissions (148800)
Total variable expense (979200)
Contribution margin 604800
Less: Fixed expense
Taxes on factory (7000)
Factory maintenance (14000)
Factory machinery depreciation (74000)
Lease of equipment for sales staff (14000)
Accounting staff salaries (64000)
Administrative management salaries (144000)
Total fixed expense (317000)
Income before tax 287800
Less: Income tax (71950)
Net income 215850
2) Contribution margin per unit = 604800/4800 = 126 per unit
Contribution margin ratio = 126 × 100/330 = 38.18%
A sale is a transaction among two or more events in which goods or services are exchanged for money or different assets. inside the monetary markets, a sale is an agreement between a customer and vendor regarding the price of a security and its shipping for agreed-upon reimbursement.
Sales play a key position in the construction of loyalty and acceptance as true among customers and groups. trust and loyalty are the main motives why a consumer could choose to suggest your enterprise to a friend or member of the family or write an awesome review of your product or service online.
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At the end of the year 2 accounting period, deyoung company determined that the market value of its inventory was $79,800. The historical cost of this inventory was $81,400. Defazio uses the perpetual inventory method. Assuming the amount is material, how will the entry necessary to reduce the inventory to the lower of cost or market affect the elements of the company’s financial statements?.
The entries required to reduce inventory to a decreased value by reducing a company's overall assets and gross margin. Beside that, by reducing internet profit of the company also can make inventory decrease to the lower of cost or market affect.
Marginal cost refers to the value to provide one additional unit of manufacturing. It is a crucial idea in price accounting as marginal value helps decide the maximum green stage of manufacturing for a production process. It is calculated by determining what costs are incurred if one extra unit is best and what prices are incurred if best one extra unit is manufactured. The relation between marginal cost and inventory is marginal price represents the incremental expenses incurred while generating extra devices of an excellent or service. It is calculated by taking the whole alternate in the price of manufacturing greater items and dividing that through the alternate in the variety of products produced.
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for a property that is subject to a long term lease an appraiser would most likely estimate potential gross income on the basis of:
For a property that is subject to a long term lease an appraiser would most likely estimate potential gross income on the basis of scheduled rent.
Does lease mean rent?The duration of the contract is the primary distinction between leased and rented properties, though. A rental contract will normally be brief only a few months—unlike a lease, which will typically cover the lengthier term specified in the agreement, which is typically and over a year.
How do leases function?The conditions under which one group decides to lease a resource this case, estate by some other party are outlined in a lease. It ensures that the tenant, also known also as lessee, will have access to the property and, in return, will make monthly payments to the lessor (the landlord or owner of the property).
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the jimenez family purchased a new home. to fully furnish their new home, they took a loan from their credit union that charges 12% per year compounded monthly . the loan amount was $16,000. they wish to pay off this loan in 5 years. how much is their monthly payments?
To fully furnish their new home they took loan from their credit union then the monthly payment system is Present value of an annuity
Given a specific rate of return, or discount rate, the present value of an annuity is the current value of the future payments from an annuity. As the discount rate rises, the annuity's present value falls. increases. The formula for calculating an annuity's present value is: PV = Individual Annuity Payment Amount x P = PMT [1 - [(1 / 1+r)n] / r] where P is the annuity stream's present value. PMT stands for the sum of each payment. r equals the interest or discount rate.
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