The Porter's Five Forces approach helps identify an industry's shortcomings by identifying and analysing competitive forces that affect every business.
What Function Do Porter's Five Forces Serve?Managers and analysts can better understand the competitive environment a company operates in and how it is positioned within it by using Porter's Five Forces Model.
What Are a Few Porter's Five Forces Drawbacks?The Five-Force model has had some limitations, including being backward-looking, which limits the relevance of its conclusions to the short term and is exacerbated by the effects of Globalisation. Another major flaw is the propensity to utilise the five forces on evaluate a specific firm rather than the entire industry, for which the framework was designed for.
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true or false: a 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less. true or false: a 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less. false true i don't know.
It is true that a 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less.
What is the difference between a 15-year and 30-year mortgage?Although 15-year mortgages can be a reasonable option for some buyers, most homebuyers usually opt for 30-year fixed-rate loans.Our monthly payments can be more manageable if you take out a 30-year mortgage.Although a 15-year mortgage has larger monthly payments overall, the overall cost of the loan is lower.A 30-year mortgage often has a higher interest rate because banks are less risky with 15-year loans than 30-year loans, and because banks can afford to provide shorter-term loans more affordably than longer-term loans.The shorter loan is preferable if an investor can afford the larger payment, particularly if they are nearing retirement and will be reliant on a fixed income.To learn more about fixed income, refer:
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strategy is an integrated and coordinated set of commitments and actions to develop core competencies and gain a competitive advantage. b. core competencies are resources and capabilities that can be developed through r
The goal of company strategy is to create core skills and acquire a competitive advantage. A coordinated and integrated set of promises and actions is a strategy. If a resource or skill is precious, uncommon, expensive to duplicate, and non-replaceable, it qualifies as a core competency.
What is strategy and example?A company's strategy refers to its long-term goals as well as the strategy it has in place to reach those goals. In other terms, it serves as an example of the plan used to accomplish the stated objective. A tactic is a specific action that is carried out in order to achieve the goals set forth in the strategy. All common elements of strategy include establishing objectives and goals, selecting actions to achieve the goals, then allocating to carry out the tasks.
Why is strategy very important?Our business's purpose is defined and given a set of values by our strategy. It facilitates our comprehension of what true success implies. It offers a route for our company, outlines our destination, and recommends helpful rest stops along the way. The secret to determining the most crucial components of a strategic plan is to select goals and objectives that maximize your potential while minimizing resource usage and risk.
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explain how a subsidy to producers can correct for a positive externality. a subsidy can correct for a positive externality because
A tax can correct for a negative externality, while a producer subsidy can correct for a positive externality. This is because the tax moves the expense to the businesses, reducing output while the subsidy boosts supply.
There are many different types of subsidies, such as direct (cash gifts, interest-free loans) and indirect (tax breaks, insurance, low-interest loans, accelerated depreciation, rent rebates). They can also be general or specific, legitimate or prohibited, and moral or immoral.Governments may offer cash, tax exemptions, or other forms of financial support to specific companies or economic sectors called subsidiesSubsidies are intended to support or sustain elements of a nation's infrastructure or economy that are seen as being crucial.To know more about Subsidy here
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automatic stabilizers lead to changes in taxation and government spending as economic output varies. how do automatic stabilizers impact tax revenue and government spending during a recession? tax revenue will decrease and government spending will go up. suppose that the government is required to balance the budget. which is an appropriate discretionary approach during a recession, and what effect would it have to the economy? cut taxes to encourage consumer spending, which would minimize the effects of the recession. invest in public infrastructure that promotes employment and stimulates the economy. cut government spending to equal tax revenue, possibly magnifying the effects of a recession. increase government spending to stimulate the economy, causing an increase in overall aggregate demand.
Automatic stabilizers are mechanisms in the economy that automatically adjust fiscal policy (taxation and government spending) in response to changes in economic output.
During a recession, when economic output decreases, automatic stabilizers lead to a decrease in tax revenue and an increase in government spending.
The first option you provided, "cut taxes to encourage consumer spending, which would minimize the effects of the recession," is an example of discretionary fiscal policy, which refers to conscious decisions made by the government to alter fiscal policy in order to influence economic activity.
The second option you provided, "invest in public infrastructure that promotes employment and stimulates the economy," is also an example of discretionary fiscal policy.
The third option you provided, "cut government spending to equal tax revenue, possibly magnifying the effects of a recession," is not an appropriate discretionary approach during a recession, as it could potentially magnify the negative effects of the recession by reducing overall aggregate demand.
The fourth option you provided, "increase government spending to stimulate the economy, causing an increase in overall aggregate demand," is an appropriate discretionary approach during a recession, as it can help to stimulate the economy by increasing overall aggregate demand and potentially offsetting the negative effects of the recession.
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a company buys electronic components, assembles them into pcs, and then ships them to customers. in this case the electronic components are for the company. a.inputs b.processes c.products d.outputs e.services
A business purchases electronic parts put them together into computers, and then sends them to clients. In this instance, the company's inputs are the electronic components.
What is the name of the electronic component?Other names for the same item include an electronic device, a circuit element, or an electronic component. a fundamental component, often a single package with two or more leads or metal contacts, of an electronic circuit
what are the types of electronic components available?Diodes, resistors, transistors, capacitors, inductors, and resistors are some of the components that make it up. The components are linked together using conductive wires or traces. A circuit, however, can only be said to be finished if it forms a loop and begins and ends at the same location.
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What Is An Example Of Opportunity Cost In Your Life?
fetzer company declared a $0.15 per share cash dividend. the company has 320,000 shares authorized, 304,000 shares issued, and 12,800 shares in treasury stock. the journal entry to record the payment of the dividend is:
Debit Common Dividend Payable - $43,680; credit Cash $43,680.
Since stated payments to shareholders are often made within a year, Dividends Payable are categorised as a current obligation on the balance sheet.
Retained earnings are the cumulative gains that are kept by a firm rather than distributed to shareholders and are used to pay cash dividends.
The correct journal entry would thus be a debit to the retained profits account following the declaration and a credit of the same amount to the dividends payable account.
A corporation's payout of earnings to its shareholders is known as a dividend. A corporation is allowed to distribute a portion of its profit as a dividend to shareholders when it generates a profit or surplus.
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andrea lost her job as an accountant because her company gave the contract for keeping accounts to a firm in asia. the company did so to reduce the costs, as it could find cheap labor in the asian countries. andrea lost her job due to which type of economic activity? a. recession b. inflation
Out of the choices provided above, it can be said that Andrea lost her job due to the economic activity of outsourcing. Therefore, the option C holds true.
Outsourcing can be referred to or considered as the process of making a contract with other firms to complete a task or a business department of an organization, so that the organization is able to focus on other important processes of business operations. It also helps in bringing specialization, thereby cutting the costs for the companies in the longer run.
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Complete question
Andrea lost her job as an accountant because her company gave the contract for keeping accounts to a firm in Asia. The company did so to reduce the costs, as it could find cheap labor in the Asian countries. Andrea lost her job due to which type of economic activity?
A. recession
B. inflation
C. outsourcing
D. depression
E. deflation
A financial statement that reports assets, liabilities, and owner’s equity on a specific date is called: _______
The term "balance sheet" refers to a financial statement that lists assets, liabilities, and owner's equity as of a certain date.
Why is money significant?The majority of financial research focuses on issues relating to money. To everyone or any business, it is a crucial element. It is crucial to a business since all companies need to make money to survive. Because of this, it is thought of as a specialized business in need of trained personnel.
What is fundamental financial understanding?This information aids in risk management and preserving the stability of the financial system. Accounts, mobile and internet banking, debit and credit cards, checks, PAN cards, ATM awareness, loans, investments, insurance, and taxes are covered in the financial fundamentals.
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which of the following is an example of an automatic stabilizer? group of answer choices new environmental regulations increase the number of citizens out of work. social security taxes are raised. congress cuts taxes. economic growth increases budget surplus. congress increases the minimum wage.
The example of an automatic stabilizer is social security taxes are raised. congress cuts taxes.
Automatic stabilizers are functions of the tax and transfer structures that mood the financial system when it overheats and stimulate the economic system while it slumps, without direct intervention by way of policymakers. automatic stabilizers offset fluctuations in economic interest without direct intervention via policymakers.
Computerized stabilizers are a type of fiscal coverage, that's desired by way of Keynesian economics as a device to combat economic slumps and recessions.
The number one gain of the automatic stabilizers is: they require no new legislative movement, so there is no legislative lag before these gear reply to fluctuations in the commercial enterprise cycle.
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last year, fullerton enterprises had average inventories (raw materials, work-in-process, and finished goods) of $7.5 million. during this same year, the cost of goods sold was $30 million. the company operates 50 weeks per year. what is their inventory turnover? turns (enter your response rounded to two decimal places.)
The $30 million cost of products sold. The business is open 50 weeks a year. The turnover of their inventory is 12.50.
What does the term "turnover" mean?Accounting's idea of turnover demonstrates how quickly a corporation does business. The bills receivable and inventories ratios are the two most used approaches to determining an industry's turnover. The amount of a portfolio sold in a particular month or year is known as turnover in the investment world.
How is turnover rate determined?The quantity of terminations within a given period is divided by the initial employee count to determine the turnover rate. If we have 250 people at the beginning of the year and 10 of them leave their jobs during that time, our turnover rate is 10/200, or 0.05.
Briefing:Inventory turnover rate = cost of items sold / ( average inventory )
=(30)/(7.5)
=4.00
Weeks on hand = (week of operation)/ (inventory turnover rate)
=(50) / (4)
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Which of the following is not a non-tariff barrier?
a. voluntary export restraint
b. health and product standards
c. enviromental protection law
d. ad-valorem duties
The one that is not a non-tariff barrier is option D. ad-valorem duties
What is a tariff barriers?Tariff barriers refers to a barrier to trade between particular countries or specific areas involving nations which occurs in the form of abnormally excessive taxes levied by a government on imports or occasionally exports for purposes of protection, support of the balance of payments, or the raising of revenue.
Tariff barriers is also considered to be several tariffs or duties imposed on foreign trade transactions to impose trade restrictions. From the available options, ad-valorem duty is tariff barrier, while the others are non-tariff barriers to trade.
Ad-valorem duty is imposed on import goods as percentage of the total value of goods imported.
Therefore, the correct answer is as given above
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if a taxpayer fills out their w-4 in a way that does not withhold enough money to cover their tax obligation, what is the most likely outcome after they file their taxes?
If a taxpayer fills out their W-4 in a way that does not withhold enough money to cover their tax obligation, they may end up owing money when they file their taxes.
What is a taxpayer?
Generally, This can happen if the taxpayer did not have enough tax withheld from their paychecks during the year or if they received additional income that was not subject to withholding, such as self-employment income or income from renting out a property.
If taxpayer owes money when they file their taxes, they will need to pay the amount due by the tax filing deadline, which is typically April 15th of the following year. If the taxpayer is unable to pay the full amount due, they may be able to set up a payment plan with the IRS to pay the balance over time. However, interest and penalties may accrue on the unpaid balance.
It is important for taxpayers to make sure that they are having enough tax withheld from their paychecks throughout the year. This can help to avoid the possibility of owing money when they file their taxes and can also help to avoid underpayment penalties.
Taxpayers can use the IRS's Withholding Calculator to help determine the appropriate amount of tax to have withheld from their paychecks.
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to manufacture 1,000 pairs of shoes in a week, a firm can use 1,500 workers and 50 machines or 100 machines and 2,000 workers. which method is more technically efficient?
Therefore, a company may produce 1000 pairs of shoes in a week with 1500 workers and 50 machines, which is a more technically effective approach than using 2000 workers and 100 equipment.
What is called workers?A person, animal, or object that works; particularly, one who is hired to perform physical or mental labour for pay, especially in order to make a livelihood, as in a trade, industry, business, office, etc. or on a farm, ranch, etc. An individual who works for a cause, group, etc. The middle class includes people who earn salaries as lawyers, librarians, high school teachers, and other professions. The working class includes people who work as miners, gardeners, or window washers. Workers are sterile, sexually immature individuals of an ant, bee, wasp, or termite colony.
What is the role of workers?Following workplace plans of action to handle and deal with any potential workplace danger, including workplace violence, is the responsibility of employees. Take advantage of the training opportunities provided by the company, such as training on preventing workplace violence. Employees are crucial because, among other things, they fulfil your objective and have sway over your customers. They complete your assignment. The fact that employees are directly accountable for completing your objective is one of the main reasons why they are crucial to an organization's success.
Briefing:1. For 1500 workers 50 machines
Worker technical efficiency = 1500/1000
Worker technical efficiency = 1.5%
Machine technical efficiency = 50/1000
Machine technical efficiency = 0.05%
Average technical efficiency = (1.5%+0.05%)/2
Average technical efficiency = 1.525%
2. For 2000 workers 100 machines
Worker technical efficiency = 2000/1000
Worker technical efficiency = 2%
Machine technical efficiency = 100/1000
Machine technical efficiency = 0.1%
Average technical efficiency = (2%+0.1%)/2
Average technical efficiency = 1.05%
It is technically more effective to have 1500 employees and 50 machines because the average technical efficiency of 1.525% is higher than 1.05%.
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the open-market committee of the federal reserve announced that it plans to sell more government bonds to the public. this action will likely
It is likely that this will result in less money being available.
What is Open market?The phrase "open market" is often used to describe a near to free trade economic environment. The phrase is used to describe interbank trading in securities in a more precise, technical sense. There are little to no constraints on how enterprises can conduct themselves in a market that is open to competition.
A market without regulatory restrictions, such as taxes, license requirements, and government subsidies, is referred to as an open market. Without the influence of an outside market, buyers and sellers can freely exchange goods. Changes in demand and supply impact the pricing of products and services.
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huan zhang bought a 10-year bond that pays 8.25 percent semiannually for $911.10. what is the yield to maturity on this bond? (round your percentage answer to two d.p.)
Huan Zhang invested $911.10 on a 10-year bond with a semi-annual interest rate of 8.25 percent. This bond has a 9.66% yield until maturity.
What is annual interest rate?The percentage amount you typically see first when comparing financial products is the annual interest rate, also known as the standard annual interest rate or base rate. It's the base rate of interest you'll pay on a loan or earn on a savings account, excluding compounding and other costs. The annual interest generated by a payment due to investors or assessed to borrowers is referred to as the annual percentage rate (APR).The annual percentage rate, or APR, is a measure of the real cost of borrowing money over the course of a loan or the income generated by an investment.The amount charged over the principal amount by the lender is the rate of interest for business loans. These rates range from 11.25% to 33.75% annually.Therefore, the correct option is b) 9.66%
The complete question is:
Huan Zhang bought a 10-year bond that pays 8.25 percent semiannually for $911.10. What is the yield to maturity on this bond? ( Round your percentage answer to two decimal places.)
a. 8.68%
b. 9.66%
c. 10.67%
d. 7.60%
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for years, some foreign firms hesitated to send women managers on foreign assignments to countries, such as , because the firms assumed the women would not be accepted in the culture that frowned on women working outside the home. a. canada b. england c. australia d. japan
The correct answer is option D that is for years, some foreign firms hesitated to send women managers on foreign assignments to countries, such as, Japan.
This was because the firms assumed the women would not be accepted in the culture that frowned on women working outside the home.
A deeper failure to eradicate or even fight a discriminatory culture that makes it practically impossible for women to progress a profession while raising a family is concealed by Japan's narrowly construed success in integrating women into the workforce.
With a bipolarization of working hours among female employees, the gender difference in Japan's workplace is still clearly visible, casting a fresh shadow over the country's economy's faltering expansion. Women are increasingly making up the workforce in Japan as a whole.
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in 2007, about how many percent of people with private health insurance in the u.s. received it as an employer-provided benefit?
In 2007, the percentage of people with private health insurance in the Unite States, that received it as an employer-provided benefit is
88 percentWhat is private health insurance?As contrast to government-run insurance programs, private health insurance refers to health insurance policies promoted by the private health insurance business.
Approximately half of Americans currently have access to private health insurance. Employer-sponsored health insurance includes these plans.
Private health insurance is heavily regulated both at the state and federal levels even though it is not managed by the government. What healthcare services must be covered by group and individual health plans is frequently addressed by regulations and laws.
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a car is purchased for . after each year, the resale value decreases by . what will the resale value be after years? use the calculator provided and round your answer to the nearest dollar.
A car is purchased for . after each year, the resale value decreases by, 24,000 in lost value making the car's value zero .
If it lost 20% of its value in the first year, it would have lost 100% of its value by the fifth year, making it worthless.
In the first year, 20/100*24000 equals $4,800.
The value will be after the first year.
Consequently, the value will be in five years.
4800*5= $24,000 in lost value making the car's value zero .
In an effort to shop more responsibly and find a new home for the things in their closet that they no longer want, consumers are turning more and more to secondhand and antique clothing, which has led to a huge rise in the demand of resale in recent years.
Your minor purchases from resale shops, such as a pair of jeans or a formal dress, have a significant influence on the environment. Buying used clothing enables you to carry on the memories of the deceased through your choices.
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The correct question is :
A car is purchased for $24,000 . After each year, the resale value decreases by 20% . What will the resale value be after 5 years? Use the calculator provided and round your answer to the nearest dollar.
acorn corporation is considering a project with an initial cash outlay of $50,000 and expected after-tax inflows of $20,000, $40,000 and $6,000 over the three-year life of the project, respectively. is 13% the irr of this project?
IRR is $5313.28,IRR is helpful in instances where it is challenging to calculate a discount rate or when evaluating several projects side by side.
IRR is sometimes preferred over NPV, when?IRR is helpful in instances where it is challenging to calculate a discount rate or when evaluating several projects side by side. When there are several discount rates or different future cash flow directions, the NPV is preferable.
IRR can be calculated manually by following these steps: Identify two potential discount rates. Pick two discount rates that you'll employ before you start your calculations. Be sure to figure out the net present values. Using the two values you choose in step one, figure out the net present values based on each estimation. Make an IRR calculation.
Top response, we calculate IRR at NPV=0 as 20000/1.13 + 40000/1.13 + 6000/1.13 = $5313.28.
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if the fed wants to control inflation, it will try to get the supply of credit to fall and increase its cost by implementing what type of policy?
To combat inflation, the central bank's one main instrument is raising interest rates, which it does by increasing the cost of borrowing money in order to reduce demand for goods and services. The success or failure of the Fed's actions won't be known to economists for some time.
What are the techniques for reducing inflation?
Controlling the amount of money in the economy is an important monetary approach to combat inflation. The demand for things will decline and prices will fall if the money supply declines. When the government removes particular coins or paper money from circulation, this is another technique to reduce the amount of money in circulation.
How does the Fed control the money supply and inflation?
The Fed can influence the money supply by modifying reserve requirements, which generally refers to the amount of funds banks must hold against deposits in bank accounts. By lowering the reserve requirements, banks are able to loan more money, which increases the overall supply of money in the economy.
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midyear on july 31st, the andrews corporation's balance sheet reported: total liabilities of $186.494 million cash of $8.040 million total assets of $219.513 million total common stock of $5.080 million. what were the andrews corporation's retained earnings?
Andrew Corporation's retained earnings at midyear July 31st, given the assets and common stock, can be found to be $ 35. 979 million
How to find the retained earnings ?The retained earnings can be found in the extended Accounting equation which is :
Assets = Total liabilities + Common stock and Equity + Retained earnings
Given this formula , the retained earnings for Andrew Corporation is therefore :
Retained earnings = Assets - Total liabilities - Common stock and Equity
= 219.513 + 8. 040 - 186. 494 - 5. 080
= $ 35. 979 million
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When is the second trimester?
Question 30 options:
weeks 1-12
weeks 13-28
weeks 29-40 (or birth if after 40 weeks)
weeks 40-birth (if baby is overdue)
The second trimester of pregnancy is option B: weeks 13-28
What weeks does 2nd trimester start?In the second trimester, you usually start to see your bump. Your body will begin displaying the development of your unborn child between 16 and 20 weeks. It's possible for some women's bumps to go undetected until the third trimester or even the end of the second trimester. In the fourth month of pregnancy, the second trimester begins.
Many of the unfavorable consequences of early pregnancy vanish during the second trimester of pregnancy, which is sometimes referred to as the "golden period." You're likely to have less nausea, more restful sleep, and more energy throughout the second trimester.
Therefore, one can say that the first trimester of a pregnancy lasts from week one to week twelve, and there are three trimesters total. From week 13 until week 26's conclusion, the second trimester is referred to.
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what is the future value of $5,300 deposited today and kept in an account for 30 years earning 11% per year?
Answer:
you multiply 5300 by 111 and divide by 100 . the answer is 5883.Subtract 5300 from it and multiply by 30.Add it to 5300.
what can the fed do with each of its three primary tools to implement expansionary monetary policy during a recession
The Fed's three main initiatives to boost the economy are a lower discount rate, the purchase of government assets, and a lower reserve ratio. Another weapon for monetary policy that central banks employ is quantitative easing.
What three tools does the Fed have at its disposal to carry out monetary policy?
The Federal Reserve's "administered rates"—interest on reserve balances, the Overnight Reverse Repurchase Agreement Facility, and the discount rate—are the main instruments of monetary policy. To make sure that these rates are efficient, a further technique known as open market operations is required.
What forms of expansionary policy does the Fed employ?
Reduced reserve requirements for banks, increased purchases of government assets, and lower interest rates are the three tools the Federal Reserve uses to conduct an expansionary monetary policy. The goal of expansionary monetary policy is to make it simpler for people and businesses to borrow money and spend it, both of which help to stimulate the economy.
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reliability refers to a. restoration of the product once it has failed. b. maintenance, repair, or replacement of the product once it has failed. c. the length of time a product can be used before it fails. d. the ratio between uptime and uptime plus downtime.
Reliability refers to The length of time a product can be used before it fails.
Hence, Option C is correct.
Reliability in statistics and psychometrics refers to a measure's general consistency. If a measurement consistently yields similar results, it is said to be very reliable. Reliability in data analysis refers to how simple it is to reproduce a result. For instance, a result is dependable if it is obtained after measuring a cup of rice three times and yielding consistent results each time.A measure's reliability is its constancy. Internal consistency, consistency among things, and consistency across different researchers are the three types of consistency that psychologists take into account (inter-rater reliability).To know more about Reliability here
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What revenue stream can run into the billions of dollars for some professional sports teams?
Due to the high demand for sponsorships, sports and entertainment companies have unlimited control and can maximize the value of a sponsor by making repeated offers to increase the price.
What is sport? What purpose does it serve?Sports teach people the following things: Working as a team to accomplish a common goal while putting aside personal interests is known as teamwork. Leadership potential Orient several people with diverse backgrounds toward a common goal or objective. A strong leader encourages others to assume leadership positions.Due to the high demand for sponsorships, businesses in the sports and entertainment sectors have complete control and can increase the value of a sponsor by making repeated offers to increase the price.To learn more about Sports refer,
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The goal of federal reserve monetary policy is to affect the level of competition in the u.s.
a. True
b. False
Yes, the purpose of the financial coverage of the Federal Reserve is to influence the extent of opposition withinside the United States. It's true.
The Federal Reserve Act states that the Federal Reserve is answerable for sporting out financial coverage "with a view to efficaciously acquire the desires of most employment, solid prices. An economy wherein folks who need to paintings both have a task or are probably to discover one pretty quickly, in addition to one wherein the fee level (which refers to a extensive degree of the fee of products and offerings bought through consumers) is solid.
Create the situations vital for hobby quotes to stabilize at slight levels. Decisions approximately financial coverage are made at Federal Open Market Committee meetings (FOMC). The FOMC consists of the president of the Federal Reserve Bank of New York, the participants of the Board of Governors, and 4 of the opposite 11 Reserve Bank presidents, who're every elected to one-yr terms.
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what is (at least) one way we could improve financial education in the us to help solve the financial capability issues?
Financial education in the us to help solve Start a budget, Understand your credit score, Schedule some time to learn.
what is Schedule?
To describe the time or manner in which something is planned to be completed. For instance, if something is finished on time, it is finished at the appointed hour.Two minutes earlier than expected, the plane touched down in Johannesburg. Everything proceeded as planned.Making a schedule keeps you on track to reach your objectives and encourages you to consider what you want to do each day, each week, and each month.Serial Timetable: A sort of schedule known as a serial schedule requires that one transaction be finished before beginning another. Non-serial Calendar: Multiple transactions run concurrently or simultaneously on a non-serial schedule.To learn more about Schedule refer to
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barry newman's savings account has a balance of $1732. after 13 years, what will the amount of interest be at 5% compounded annually?
The yearly basis compounded interest rate of 5% seems to be $1533.94. (APPROX).
What exactly was meant by "interest"?
Interest is indeed the money borrowed or the expense of making loans. Investment is most frequently expressed as a annual percentage of something like the loan amount. The above portion is known as such loan amount cost of borrowing.
Briefing:
We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
Hence
A=$1732(1+5/100)^13
=$3265.94(APPROX)
Hence interest =A-P
=$3265.94 - $1732
=$1533.94(APPROX).
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