Assume a bank loan requires an interest payment of $85 per year and a principal payment of $1,000 at the end of the loan's eight-year life. What would be the present value of the loan if the interest rate is 8 percent?

Answers

Answer 1

Considering the situation described above, what would be the present value of this loan is $1,000.

This is explained below:

Given that the loan interest rate is $85 85/1000 = 8.5

Then the market interest rate is => 8.5 percent

Therefore, given that there is no difference between the market rate and the loan rate, then the loan is expected to be sold at $1,000 which is the face value of the loan.

To prove it, we have the following:

PV of the annuity of $85 during 8 years at an 8.5% market rate

C => 85

Time => 8

Rate => 0.085

C × { [1 - ( 1+ r ) ] ^-time } ÷ rate = PV

85 × [1 - (1 + 0.085)^-8] ÷ 0.085 = PV

PV =. $479.3306

Present value of the maturity date:

Maturity 1000

Time => 8

Rate => 0.085

Maturity ÷ (1+rate)^rate = PV

1000 ÷ (1+0.085)^8 = PV

PV => $520.6694

Therefore, the Total present value

=> PV c $479.3306 + PV m $520.6694

=> Total $1,000.

Hence, in this case, it is concluded that the correct answer is $1,000.

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Related Questions

find (a) pq to the nearest tenth and (b) the coordinates of the midpoint of pq p(2,2) q(-3,-6)

Answers

[tex]~~~~~~~~~~~~\textit{distance between 2 points} \\\\ P(\stackrel{x_1}{2}~,~\stackrel{y_1}{2})\qquad Q(\stackrel{x_2}{-3}~,~\stackrel{y_2}{-6})\qquad \qquad d = \sqrt{( x_2- x_1)^2 + ( y_2- y_1)^2} \\\\\\ PQ=\sqrt{[-3 - 2]^2 + [-6 - 2]^2}\implies PQ=\sqrt{(-5)^2+(-8)^2} \\\\\\ PQ=\sqrt{25+64}\implies PQ=\sqrt{89}\implies \boxed{PQ\approx 9.4}[/tex]

[tex]~~~~~~~~~~~~\textit{middle point of 2 points } \\\\ P(\stackrel{x_1}{2}~,~\stackrel{y_1}{2})\qquad Q(\stackrel{x_2}{-3}~,~\stackrel{y_2}{-6}) \qquad \left(\cfrac{ x_2 + x_1}{2}~~~ ,~~~ \cfrac{ y_2 + y_1}{2} \right) \\\\\\ \left(\cfrac{ -3 + 2}{2}~~~ ,~~~ \cfrac{ -6 + 2}{2} \right)\implies \left(\cfrac{-1}{2}~~,~~\cfrac{-4}{2} \right)\implies \left( -\cfrac{1}{2}~~,~~-2 \right)[/tex]

does anyone know the square root of 65

Answers

Answer:

8.062257748

If you need any other help , please let me know ! [ you'll have to pay ]

a 1 Mrs. Erskine spent $40.50 for a pair of shoes, $56.95 for jeans, and $25.75 for a shirt. Which of the following shows two equivalent expressions, using the associative property of addition, that can be used to find the amount Mrs. Erskine spent? A (40.50 + 56.95) + 25.75; 25.75 + (40.50 + 56.95) B 40.50 +(56.95 + 25.75); (40.50+ 56.95) + 25.75 C 40.50 + (56.95 + 25.75); (40.50. 56.95) + (40.50 .25.75) D (40.50 +56.95) + 25.75; (40.50 + 56.95 +25.75) • 1 o​

Answers

Answer:

A

Step-by-step explanation:

Commutative Property(a + b) + c = c + (a + b)

(40.50 + 56.95) + 25.75 ; 25.75 + (40.50 + 56.95) correctly represent the situation using the commutative property.

Why does Mrs snuggle call her sons ranch solar focus

Answers

Answer:

It is the spot where sons raise meat.

Use the Venn diagram to calculate probabilities.

Circles A, B, and C overlap. Circle A contains 3, circle B contains 9, and circle C contains 6. The overlap of A and B contains 1, the overlap of B and C contains 4, and the overlap of C and A contains 7. The overlap of the 3 circles contains 6. Number 8 is outside of the circles.

Which probability is correct?

P(A|B) = One-half
P(B|A) = StartFraction 7 Over 20 EndFraction
P(A|C) = StartFraction 6 Over 23 EndFraction
P(C|A) = StartFraction 13 Over 17 EndFraction

Answers

Using the probability concept and the Venn diagram described, the correct option is given by:

P(C|A) = 13/17.

What is a probability?

A probability is given by the number of desired outcomes divided by the number of total outcomes.

P(A|B) is given by the sum of the values that involve both A and B by the sum of all values that involve B, hence:

D = 1(overlap of A and B) + 6(Overlap of the 3).T = 9 + 1 + 4 + 6 = 20.

Hence:

P(A|B) = 7/20.

Following the same logic, we have that:

P(B|A) = (1 + 6)/(3 + 1 + 7 + 6) = 7/17P(A|C) = (7 + 6)/(6 + 4 + 7 + 6) = 13/23P(C|A) = (7 + 6)/ (3 + 1 + 7 + 6) = 13/17.

Hence the last option is correct.

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Answer:

the correct answer is 13/17

I got it right on edge 2022

Step-by-step explanation:

how many minutes have it been if the start time is 5:30 p.m. and the end time is 5:49​

Answers

Answer:

19 minutes.

Step-by-step explanation:

49  - 30

= 19 minutes.

help pls and ty :D !!​

Answers

Try this suggested option, answers are marked with colour.

Find -3A if A=…………….

Answers

Answer:

Option A is correct !

------- HappY LearninG <3 ------

HELP ASAPPP PLEASE AND THANK YOU

Answers

Answer:

x < - 25

Step-by-step explanation:

| x + 3 | > 22

Case 1 : x + 3 > 22 [WORKED]

x > 22 - 3

x > 19

Case 2: - (x + 3) > 22

- x - 3 > 22

- x > 22 + 3

x < - 25

As case 1 and 2 don't overlap, so the answer of x should be:

x < - 25 or x > 19

What is the value of the expression below when f = 2.5


8 + 4f
A. 132
B. 18
C. 42
D. 28

Answers

Answer:

x = 48

Step-by-step explanation:

(x - 6)⁰ + ( 2x + 42)⁰ = 180⁰

x - 6⁰ + 2x + 42⁰ = 180⁰

x + 2x - 6⁰ + 42⁰ = 180⁰

3x + 36⁰ = 180⁰

3x + 36⁰ - 36⁰ = 180⁰ - 36⁰

3x = 144⁰

3x / 3 = 144⁰ / 3

x = 48

Hope this helps, thank you :) !!

the answer is B
explanation

What would be the cross section of a rectangular prism that is sliced horizontally?
F.trapezoid
G.Triangle
H.Rectangle
I.Circle

Answers

Answer:

Rectangle

Step-by-step explanation:

Horizontal is going across. So when you slice the rectangular prism, you end up with rectangle

Answer:

It is a rectange

Step-by-step explanation:

No matter how high up or low you cut a horizontal cross section on a rectangular prism, it is always a rectangle.

Find triangle angle A when a=4, b=8, c=6

Answers

Answer:

A=28.95502437A=28.95502437B=104.47751218B=104.47751218C=46.56746344C=46.56746344a=4a=4b=8b=8c=6

can anyone help me find the area of these two pls ? ty

Answers

equation pi X r^2 first one = 158.37
second one 50.27

Heeeeeeeelp
Find the sum of the even numbers from 66 to 152, inclusive.

Answers

Answer:

72+30=102

Step-by-step explanation:

0+2=2

7+3=10 so the answer

10

+002

102

Simplify. (1/2k)(4k)+12
14 k
2 k^2+12
14 k^2
2 k+12

Answers

Answer:

2k^2+12

Step-by-step explanation:

remove parentheses, simplify calculate

i really need help with this ​

Answers

Answer:

The second answer is decreases.

Step-by-step explanation:

As X -value increases, the y-value decreases. If you reply back with the options for the first half of the question I'll do my best to answer that as well

couldddddddddd i have some help super fast?

Answers

Answer:

[tex]\textsf{a)} \quad P=-20(x-2)^2+3380[/tex]

b)  cost of ticket = $13

    max profit = $3380

    number of tickets sold = 260

Step-by-step explanation:

Profit equation:   [tex]P=20(15-x)(11+x)[/tex]

Part (a)

Vertex form of quadratic equation:  [tex]y=a(x-h)^2+k[/tex]

(where (h, k) is the vertex and [tex]a[/tex] is some constant)

First, write the given profit equation in standard form [tex]ax^2+bx+c[/tex]:

[tex]\begin{aligned}\implies P&=20(15-x)(11+x)\\& = 20(165+4x-x^2)\\& = -20x^2+80x+3300\end{aligned}[/tex]

Factor -20 from the first two terms:

[tex]\implies P=-20(x^2-4x)+3300[/tex]

Complete the square:

[tex]\implies P=-20(x^2-4x+4)+80+3300[/tex]

[tex]\implies P=-20(x-2)^2+3380[/tex]

Part (b)

The vertex of the profit equation is (2, 3380).

Therefore, the cost of the ticket is when x = 2 ⇒ $11 + 2 = $13

The maximum profit is the y-value of the vertex:  $3380

The number of tickets sold at this price is:

⇒ max profit ÷ ticket price

= 3380 ÷ 13

= 260

In ΔTUV, u = 330 inches, t = 800 inches and ∠T=53°. Find all possible values of ∠U, to the nearest degree.

Answers

Answer: 19

Step-by-step explanation:

Graph y = 2x - 7.
Help pleaseee

Answers

Answer:

Follow my directions:

Step-by-step explanation:

Your Slope-Intercept Form: y=2x-7

1.) Find (0,-7) that shall be your y-intercept.

2.) From your y-intercept [ (0,-7) ]  you need to go up 2 and over 1.

**Meaning go up on the y-axis 2 times and go right 1.

     

A family drives 412 miles in 110 of an hour. What is their rate of speed in miles per hour?

Answers

Answer:

3.74 mph

Step-by-step explanation:

412÷110=3.74

Jill was looking at a picture of herself and 3 friends. She measured the height of her image as 10 centimeters. If Jill is actually 60 inches tall, which equation can she use to find h, the actual height in inches, of one of her friends who is c centimeters tall in the picture?

Answers

The actual height in inches,will be  [tex]\dfrac{1}{6} c[/tex]  of one of her friends who is c centimeters tall in the picture

What is hieght?

Height is measure of vertical distance, either vertical extent (how "tall" something or someone is) or vertical position.

lets call the height x :

[tex]\dfrac{10}{60} = \dfrac{h}{x}[/tex]

[tex]x = \dfrac{1}{6} h[/tex]

Hence the actual height in inches,will be  [tex]\dfrac{1}{6} c[/tex]  of one of her friends who is c centimeters tall in the picture.

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In 1900 Kansas City had a population of 163,000In 2020 it has a population of 1,686,000Show me exponential growthHow many years after 1900Did it take for the population to double

Answers

The exponential growth is 1.95% and after 35.72 years the population will double.

What is an exponential function?

It is defined as the function that rapidly increases and the value of the exponential function is always a positive. It denotes with exponent [tex]\rm y = a^x[/tex]

where a is a constant and a>1

Let's suppose the exponential growth function is:

[tex]\rm y = Ae^{rt}[/tex]

A = 163,000

y = 1,686,000

t = 2020 – 1900 = 120 years

Plug all the values in the function:

[tex]\rm 1686000 = 163000e^{120r}[/tex]

[tex]\rm e^{120r} = 10.343[/tex]

Taking ln both side and solving:

r = 0.0194

r = 1.946 ≈ 1.95%

[tex]\rm 2A = Ae^{0.0194t}[/tex]  (the population to double)

After solving:

t = 35.72 years

Thus, the exponential growth is 1.95% and after 35.72 years the population will double.

Learn more about the exponential function here:

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Question 22: 4 pts Find the probability of rolling a 4 on a number cube and then choosing a red ball at random from a bag of 8 blue and 6 red balls.​

Answers

Answer:

1/14

Step-by-step explanation:

a four out of possible   6 rolls   = 1/6

6 red out of 14 balls      6/14

1/6  * 6/14 = 1/14

The Probability of rolling a 4 on a number cube and then choosing a red a ball at random is 1/14.

What is Probability?

Probability is "possibility that deals with the chance of occurrence of random event" .

According to the question,

A cube has 6 faces that is  (1,2,3,4,5,6). Total number of faces n(s) = 6.

Probability formula = (Number of favorable event)/(Total number of event).  

Probability of taking 4, P(4) = 1/6.

A bag containing 8 blue and 6 red balls. Total number of balls in a bag n(s) = 14.

Probability of taking red balls P(red balls) = 6/14.

In order to find that probability of rolling a 4 on a number cube and then choosing a red a ball at random only if multiply P(4) by P(red balls).

P(4) × P(red balls) = [tex]\frac{1}{6}[/tex] × [tex]\frac{6}{14}[/tex] = [tex]\frac{1}{14}[/tex].

Hence,  probability of rolling a 4 on a number cube and then choosing a red a ball at random is 1/14.

 

Learn more about Probability here

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A TV has a listed price of $530.99 before tax. If the sales tax rate is 7.25%, find the total cost of the TV with sales tax included.
Round your answer to the nearest cent, as necessary.

Answers

Answer:

569.49$

Step-by-step explanation:

7.25% = .0725

530.99 x 0.725 = 38.50

530.99$ + 38.50$

569.49$

Please I really need help

Answers

Answer:

85°

Step-by-step explanation:

The two angles are known as vertical angles, which are always congruent

Answer:

∠DEB = 85°

Step-by-step explanation:

Vertical Angle Theorem

When two straight lines intersect, they form two pairs of angles.  The vertically opposite (non-adjacent) angles are congruent.

Angles AEC and DEB are vertically opposite angles, therefore:

∠AEC = ∠DEB

As ∠AEC = 85° then ∠DEB = 85° also.


Someone please help me on this question I have to get 100 and I will give you Brainless and I did not mean to pick B

Answers

Answer:

option A

Step-by-step explanation:

The concept of parallel refers to lines that are perfectly relative to another

if you want to memorize this concept. always think of the EQUAL sign.

=

the equal sign has two lines that are perfectly horizontal. no matter if they are inclined, both lines reflect each other.

(2/3)x+4(y-2)=0 slope intercept form

Answers

Answer: y = -1/6x+2

Steps: Simplify the left side, Move all terms not containing y to the right side of the equation, Divide each term and simplify, and write in y = mx+b form.

I hope this helps.

If the temperature is 11 degrees and overnight it drops by 20 degrees, what is the new temperature in the morning? Explain how you arrived at your answer.

Answers

Answer:

-9 degrees.

Subtract 20 from 11 to get -9.

The inverse of G(x) is a function.
G(

Answers

Answer:

False

Step-by-step explanation:

To determine if the inverse of g(x) is a function, we will use the horizontal line test.

A horizontal line will pass through more than one point, so it is not a function

14 2/3 yards into feet?

Answers

Answer:

44.000000001 (exact) or rounded up 44

Step-by-step explanation:

14.666666667*3 because 1 yard= 3 feet

One yard is 3 feet, which means we will have to mutliple 14 2/3 by 3.

14 x 3 =42

2/3 of a yard is 2 feet, which means we must add 2 to 42--->

42+2= 44

14 2/3 yards is 44 feet.

Hope This Helps <3

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