subject
Business, 24.08.2021 02:30 wendyyy7774

Sixteen years ago, the Archer Corporation borrowed $6,350,000. Since then, cumulative inflation has been 87 percent (a compound rate of approximately 4 percent per year). a. When the firm repays the original $6,350,000 loan this year, what will be the effective purchasing power of the $6,350,000? (Hint: Divide the loan amount by one plus cumulative inflation).
b. To maintain the original $6,350,000 purchasing power, how much should the lender be repaid? (Hint: Multiply the loan amount by one plus cumulative inflation).

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 20:20
Jimmy owns an ice cream parlor. he designs a schedule for the different tasks the employees have to perform in order to prevent monotony at work. according to the schedule, if an employee makes waffle cones on a day, he serves ice creams the next day and clears the tables on the day after that. jimmy is using the approach at his ice cream parlor.
Answers: 2
question
Business, 22.06.2019 13:30
How does hipaa address employee’s access to e-phi?
Answers: 1
question
Business, 22.06.2019 15:30
Calculate the required rate of return for climax inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 2.30, and (5) its realized rate of return has averaged 15.0% over the last 5 years. do not round your intermediate calculations.
Answers: 3
question
Business, 22.06.2019 19:10
You have just been hired as a brand manager at kelsey-white, an american multinational consumer goods company. recently the firm invested in the development of k-w vision, a series of systems and processes that allow the use of up-to-date data and advanced analytics to drive informed decision making about k-w brands. it is 2018. the system is populated with 3 years of historical data. as brand manager for k-w’s blue laundry detergent, you are tasked to lead the brand's turnaround. use the vision platform to to develop your strategy and grow blue’s market share over the next 4 years.
Answers: 2
You know the right answer?
Sixteen years ago, the Archer Corporation borrowed $6,350,000. Since then, cumulative inflation has...
Questions
question
Mathematics, 25.01.2022 01:40
question
Mathematics, 25.01.2022 01:40
Questions on the website: 13722367