Raymond's Leasing Company signed an agreement to lease an asset that has a fair value of $800,000 on December 31, 2014. The lease will be paid in seven equal annual payments of $138,730, beginning on December 31, 2014. The interest rate included in the lease agreement is most nearly equal to
A. 8%.
B. 7%.
C. 6%.
D. 5%.
Answer: B
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Solve the problem. Round to the nearest hundredth, if necessary.84 is 70% of what number?
A. 120 B. 1200 C. 58.8 D. 12
For which of the following transactions would the present value of an annuity due concept be most appropriate for calculating the present value of the asset acquired or liability assumed?
A. A rental agreement is entered into with the initial payment due immediately. B. A rental agreement is entered into with the initial payment due one month from the signing of the agreement. C. A note payable is obtained from a bank requiring monthly payments for six years, beginning at the end of the current month. D. A machine is acquired by paying $20,000 cash and agreeing to pay equal annual amounts of $10,000 each at the end of the next three years.
Provide an appropriate response.A plan in which payments are made at the beginning of each period is called a(n) ________.
A. future annuity B. annuity due C. ordinary annuity D. None of the above
Maria used to do her math homework regularly and studied diligently for exams, although she continued to have difficulty getting passing grades. Disheartened, Maria began to put less effort into her homework, and eventually she failed her math class. This is an example of what type of behavior?
A. reinforcement B. stimulus generalization C. social-cognitive diversion D. punishment