Assume a five-year equal payment amortization schedule with an annual interest rate of 12% and annual payments. If the beginning principal is $8,000, then the first interest payment will be how large?
A) $960.00
B) $1,200.00
C) $2,219.28
D) There is not enough information to answer this question.
Answer: A
Explanation: A) The first payment will be equal to the beginning balance times the annual interest rate = $8,000 × .12 = $960.00.
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Marcus Jones wants to invest $10,000 on January 1, 2014, so that he may withdraw 10 annual payments of equal amounts beginning January 1, 2029. If the fund earns 10% annual interest over its life, what will be the amount of each of the withdrawals?
A) $10,000 B) $14,709 C) $16,181 D) $28,402
In the context of Mintzberg's organizational structures, the professional bureaucracy achieves coordination through:
A. direct supervision of professionals. B. selective decentralization of professional teams. C. the standardization of professionals' skills. D. the standardization of professionals' work processes.
Calculate the profitability index for Project A. Show your calculations and round to two decimal places.
The following information is provided by Bethel Company:
The constant growth dividend model used to evaluate the prices of common stocks is conceptually similar to the model used to find the price of perpetual preferred stock or other perpetuities.
Answer the following statement true (T) or false (F)