If you borrow $5,000 at an annual interest rate of 9.0% for six years, what will your repayment(s) be if this is a discount loan?
What will be an ideal response?
Answer: FV = PV × (1 + r)n = $5,000 × (1.09)6 = $8,385.50 in year six only.
Explanation: A discount loan pays in full at maturity.
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Dynamic comparative advantage involves
a. industrial policy to create comparative advantage. b. less governmental involvement in the economy. c. reduced rules and regulations imposed by foreign governments. d. accepting and working with existing resources.
What are five ways that an organization could reduce product costs? Provide an example of how each method would cause cost reduction
Which of the following is/are true?
a. After cost of sales, the income statement typically shows deductions for other expenses associated with operations (other operating expenses). b. Many firms present a subtotal called operating income or operating profit, the difference between revenues and expenses associated with core operating activities. c. two common types of operating expenses are selling, general, and administrative expenses (SG&A) and research and development expenses (R&D). d. all of the above e. none of the above
The beta of a portfolio
A) does not change over time. B) is irrelevant, only the betas of the individual assets are important. C) is the weighted average of the betas of the individual assets in the portfolio. D) is the sum of the betas of all assets in the portfolio.