Many companies secure financing from various sources with various payback periods. Not all funding sources are the same, and in fact, some can come with a pretty high cost to the firm. These costs could include high interest rates, long payback periods, and increased ownership in the firm which could result in lost control.

Analyze the funding options listed, and determine if the option is usually a short-term or long-term strategy.

a. Line of credit
b. Commercial paper
c. Trade credit
d. Bank load of 10 months
e. Bond
f. Stock
g. Bank load of 20 months

Answers

Answer 1

Answer and Explanation:

The classification of the funds as a short term or long term strategy as follows;

a. Line of credit = short term financing

b. Commercial paper = short term financing

c. Trade credit = short term financing

d. Bank load of 10 months = short term financing

e. Bond = long term financing  

f. Stock = long term financing  

g. Bank load of 20 months = long term financing

In this way, the classifications of the funds has to be done


Related Questions

On May 1, 2021, Meta Computer, Inc., enters into a contract to sell 5,500 units of Comfort Office Keyboard to one of its clients, Bionics, Inc., at a fixed price of $94,600, to be settled by a cash payment on May 1. Delivery is scheduled for June 1, 2021. As part of the contract, the seller offers a 25% discount coupon to Bionics for any purchases in the next six months. The seller will continue to offer a 5% discount on all sales during the same time period, which will be available to all customers. Based on experience, Meta Computer estimates a 50% probability that Bionics will redeem the 25% discount voucher, and that the coupon will be applied to $44,000 of purchases. The stand-alone selling price for the Comfort Office Keyboard is $19.20 per unit.

Required:
a. . How many performance obligations are in this contract?
b. Prepare the journal entry that Meta would record on May 1, 2021.
c. Assume the same facts and circumstances as above, except that Meta gives a 5% discount option to Bionics instead of 25%. In this case, what journal entry would Meta record on May 1, 2021?

Answers

Answer:

A. 2

B. May 1, 2021

Dr Cash $94,600

Cr Deferred revenue $89,870

Cr Deferred revenue-coupons $4,730

C. May 1, 2021

Dr Cash $94,600

Cr Deferred Revenue $94,600

Explanation:

A. Based on the information given the numbers of PERFORMANCE OBLIGATIONS that are in this contract is 2 which are:

KEYBOARD and CUSTOMER OPTION FOR FUTURE DISCOUNT

B. Preparation of the journal entry that Meta would record on May 1, 2021.

May 1, 2021

Dr Cash $94,600

Cr Deferred revenue $89,870

($94,600-$4,730)

Cr Deferred revenue-coupons $4,730

(5%*$94,600)

C. Preparation of the journal entry that Meta would record on May 1, 2021

May 1, 2021

Dr Cash $94,600

Cr Deferred Revenue $94,600

In a closed economy, saving and investment must be equal, but this is not the case in an open economy. In the following problem, you will explore how saving and investment are connected to the international flow of capital and goods in an economy. Before delving into the relationship between these various components of an economy, you will be asked to recall some relationships between aggregate variables that will be useful in your analysis.

Recall the components that makeup GDP. National income (Y) equals total expenditure on the economy's output of goods and services. Thus, where C= consumption, I= investment, G =government purchases, X=exports, M =imports, and NX= net exports.
Y= _____

Also, national saving is the income of the nation that is left after paying for _____. Therefore, national saving (S) equals:
S=_____

Rearranging the previous equation and solving for Y yields, Y= _____ Plugging this into the original equation showing the various components of GDP results in the following relationship:
S=_____

Answers

Answer:

Y = C + I + G + NX

S = Y - C

S = I + G + NX

Explanation:

National Income Y = C + I + G + NX ; {where consumption, investment, government purchases, net exports ie exports - imports are corresponding expenditure of households, firms, government, rest of the world}

National Saving (S) is income (Y) left after paying for consumption (C) . So, S = Y - C

Using above equations, Y = C + S , Y = C + I + G + NX

C + S = C + I + G + NX

So, S = I + G + NX

Journalize the following transactions, using the allowance method of accounting for uncollectible receivables
Mar. 17: Received $2,700 from Keith MacPhearson and wrote off the remainder owed of $6,370 as uncollectible.
Mar. 17 July 29: Reinstated the account of Keith MacPhearson and received $6,370 cash in full payment.

Answers

Answer:

                                 Journal entry

Date Account & Explanation                     Debit      Credit

Mar 17.    Cash                                                 $2,700

               Allowance for doubtful accounts   $6370  

                        Account receivable                                $9,070

Jul 29     Account receivable                         $6,370

                        Allowance for doubtful accounts           $6,370

              (To record amount reinstated)

               Cash                                                 $6,370

                         Account receivable                                 $6,370

              (To record amount received)

XYZ Insurance Company uses class rating to determine the rate to charge for insurance.
For one type of insurance the pure premium XYZ actuaries calculated is $75 per unit.
If XYZ's expense ratio is 30%, what is the gross rate for this coverage?
O a. $107.14
O b. $96.28
O C. $85.19
O d. $115.62​

Answers

Answer:  a. $107.14

Explanation:

The gross rate for insurance coverage represents the amount that the insurance provider needs to pay for losses as well as the amount needed to pay for expenses such as sales expenses and still be able to have a profit.

Given the expense ratio and the pure premium is:

= Premium / ( 100 - expense ratio)

= 75 / (100 - 30%)

= $107.14

On May 8, Dome filed a financing statement that adequately identified the collateral. On June 9, Tint sold one computer to Bean for personal use and four computers to Green Co. for its business. Which of the following is correct?
A. The computer sold to Bean will riot be subject to Dome's security interest
B The computers sold to Green will be subject to Dome's security interest
C. The security interest cloes rnot include the prioceeds from the sale of the.computers to Green
D. The security interest muy not cover after-acquired property evenif the parties agree 2 pts

Answers

Answer: A. The computer sold to Bean will not be subject to Dome's security interest

Explanation:

The computers sold to Bean have passed ownership from Tint to Bean and so cannot be subject to whatever agreements Tint had with Dome Bank because those agreements were contingent on Tint owning the computers.

For instance, if you buy a car from a dealership which had acquired those cars by using loans from a bank, you are not liable to pay the interest on the loan that the dealership took to buy the car.

Ahsan Company makes 60,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: Direct materials $12.60 Direct labor 17.20 Variable manufacturing overhead 4.10 Fixed manufacturing overhead 15.00 Unit product cost $48.90 An outside supplier has offered to sell the company all of these parts it needs for $69.70 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $319,600 per year. If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, $4.30 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company's remaining products. How much of the unit product cost of $48.90 is relevant in the decision of whether to make or buy the part? Multiple Choice $44.60 $17.20 $69.70

Answers

Answer:

Ahsan Company

Only $44.60 of the unit product cost of $48.90 is relevant in the decision of whether to make or buy the part.

Explanation:

a) Data and Calculations:

Annual units of parts produced = 60,000

Unit product costs:

Direct materials                              $12.60

Direct labor                                       17.20

Variable manufacturing overhead    4.10

Fixed manufacturing overhead      15.00

Unit product cost                         $48.90

Outside supplier's offer price per unit = $69.70

Relevant /avoidable costs:

Direct materials                                   $12.60

Direct labor                                            17.20

Variable manufacturing overhead         4.10

Fixed manufacturing overhead           10.70

Unit product cost                              $44.60

Opportunity cost ($319,600/60,000)   5.33

Total avoidable/relevant costs/unit $49.93

ABC Corporation is considering the purchase of a machine that would cost $220,000 and would last for 9 years. At the end of 9 years, the machine would have a salvage value of $20,500. By reducing labor and other operating costs, the machine would provide annual cost savings of $35,000. The company requires a minimum pretax return of 9% on all investment projects. (Ignore income taxes.) Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed project is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
a. $(745)
b. $(95,000)
c. $(16,092)
d. $9,665

Answers

Answer:

a. $(745)

Explanation:

The computation of the net present value is shown below;

As we know that

Net present value = Present value of Cash inflow - Present value of Cash outflow

= ($35,000 × 5.995+  $20,500 × 0.46) - $220,000

= -$745

We simply deduct the cash outflow present value from the cash inflow present value so that the net present value could come

hence, the option a is correct

How do I solve this? It’s a real estate question.

Answers

A.2.2 points(the answer)(you’re welcome)

Select the correct answer from each drop-down menu.
What techniques can you use to control inventory costs?

(economic order, Just in time, Carrying) ______ quantity indicates the minimum quantity of goods to reach before reordering inventory.
(Reliable Stock, Safety Stock, Scheduled Stock) _____ is the quantity of goods to keep as a buffer to utilize in times of emergency.

Answers

Answer:

First one: Economic Order; Second One: Safety Stock

Explanation:

I know the second one's right because it frequently shows up on PLATO modules for business. The first one is economic order according to investopedia.com. I looked up both carrying quantity and just in time quantity, too-- it seems as carrying quantity isn't a thing, and just in time quantity focuses on decreasing waste. See my comments on your question for quotes from the source.

Hope this helps you!!

Margaret Lindley paid $15,160 of interest on her $301,600 acquisition debt for her home (fair market value of $501,600), $4,160 of interest on her $30,160 home-equity debt, $1,160 of credit card interest, and $3,160 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,160 of interest income this year and no investment expenses. How much of the interest expense may she deduct this year

Answers

Answer:

Margaret Lindley

Margaret Lindley can deduct  $12,320 of the interest expense this year.

Explanation:

a) Data and Calculations:

Interest on $301,600 acquisition debt for her home = $15,160

Fair market value of home = $501,600

Interest on her $30,160 home-equity debt = $4,160

Credit card interest = $1,160

Margin interest expense = $3,160

Interest income received = $10,160

Deductible interest expense:

Interest on debt for her home = $15,160

Interest on home-equity debt =   $4,160

Margin interest expense =           $3,160

Interest income received =       ($10,160)

Deductible interest expense = $12,320

b)  Margaret cannot deduct her credit card interest because it is considered as a type of personal consumer finance interest.  This type of interest expense is not tax-deductible.

Quelle è il articolo che parla dalla ugualianza

Answers

Il principio è contenuto nell'articolo 3 della Costituzione, uno dei più importanti e noti, che che dice: Tutti i cittadini hanno pari dignità sociale e sono eguali davanti alla legge, senza distinzione di sesso, di razza, di lingua, di religione , di opinioni politiche, di condizioni personali e sociali.

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,592,000. Its useful life was estimated to be six years with a $168,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows: ($ in 1000)
Year Straight-Line Declining Balance Difference
2018 $404 $864 $460
2019 404 576 172
2020 404 384 (20)
$1,212 $1,824 $612
Required:
Prepare any 2013 journal entry related to the change.

Answers

Answer:

Dr Accumulated Depreciation $612

Cr Retained Earnings $612

Explanation:

Preparation of journal entry related to the change.

Based on the information given the Journa entry related to the change is:

Dr Accumulated Depreciation $612

Cr Retained Earnings $612

($1,212-$1,824)

( To record the change of depreciation methods)

What are the differences between progressive, regressive and flat taxes?

Answers

Answer:

Find answers below.

Explanation:

Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.

The difference between a progressive, regressive and flat tax are;

1. Progressive taxation: it involves charging individuals having higher incomes a higher percentage of their total income.

- For instance, John pays 30% on $70,000 and Joyce pays 10% on $45.000.

2. Regressive taxation: it involves charging individuals with low incomes a higher percentage of their total income and vice-versa.

- For instance, John pays 15% on $60,000 and Joyce pays 20% on $36,000.

3. Flat tax: it's a tax system which typically involves applying a single tax rate to all levels of income earned by employees, regardless of the amount being earned.

- For example, all of the employees in a country are levied 15% tax on the amount of money earned.

Five years​ ago, you invested in the Future Investco Mutual Fund by purchasing shares of the fund at the price of per share. Because you did not need the​ income, you elected to reinvest all dividends and capital gains distributions. ​ Today, you sell your shares in this fund for ​$ per share. If there were a ​% load on this​ fund, what would your rate of return​ be?

Answers

Answer:

7.12%

Explanation:

Full question "Three years? ago, you invested in the Future Investco Mutual Fund by purchasing 1,000 shares of the fund at the price of $ 19.51 per share. Because you did not need the? income, you elected to reinvest all dividends and capital gains distributions. ? Today, you sell your 1,100 shares in this fund for ?$22.02 per share. If there were a 1?% load on this? fund, what would your rate of return? be? The compounded rate of return on this investment over the? three-year period is?"

Value of investment three year ago = 1,000 * $19.51 = $19,510

Value of investment today = 1,100 * $22.02 = $24,222

Load = 1%. Net Proceed from sale of investment = $24,222 * (1 - 1%) = $23,979.78

Rate of return in three year = ($23,979.78 - $19,510) / $19,510

Rate of return in three year = $4,469.79 / $19,510

Rate of return in three year = 0.229103

Rate of return in three year = 22.91%

Annual Return = [(1 + 22.91%)^(1 / 3)] - 1

Annual Return = 1.0712 - 1

Annual Return = 0.712 - 1

Annual Return = 7.12%

On January 1, 2018, the Chaucer’s Restaurant decides to invest in Lake Turner bonds. The bonds mature on December 31, 2023, and pay interest on June 30 and December 31 at 4% annually. The market rate of interest was 4% on January 1, 2018, so the $90,000 maturity value bonds sold for face value. Chaucer’s intends to hold the bonds until December 31, 2023.

Required:
a. Journalize the transactions related to Chaucer’s investment in Lake Turner bonds during 2018.
b. In what category would Chaucer’s report the investment on the December 31, 2018, balance sheet?

Answers

Answer:

a)

January 1, 2018

Dr Investment in bonds 90,000

    Cr Cash 90,000

June 30, 2018

Dr Cash 1,800

    Cr interest revenue 1,800

December 31, 2018

Dr Cash 1,800

    Cr interest revenue 1,800

b) This investment must be reported under long term assets since they are classified as Held to Maturity.

the preferred stock of BGE, inc. is sold at $37 and pays a divident of $5. And the net price of the secuirty after issurancee costs is estimated to be $32.93 what is the cost of preferred stock for BGE? g

Answers

Answer:

15.18%

Explanation:

Cost of preferred stock = Annual dividend/Net Proceeds

Cost of preferred stock = $5 / $32.93

Cost of preferred stock = 0.1518372305

Cost of preferred stock = 15.18%

So, the cost of preferred stock for BGE is 15.18%.

FINANCIAL LITERACY
WILL MARK BRAINLIEST PLS HELP ASAP!!

Answers

Answer:

i dk

Explanation:

tthanks for the points tho

Several critics of the drug companies have claimed that the companies' practice of testing drugs on poor people in developing countries violates principles of justice. Why would they say this

Answers

Answer:

Because people in developing countries are less educated and don't understand the implications of being used for drug trials

Explanation:

Drug trials are carried out to test new drugs that companies want to introduce to the market.

The drugs are usually first tested on animals and in the final testing phase human trials are used to gauge how the drug will affect people.

In 1980 the FDA gave approval for testing in other countries. A lot of companies now started using developing countries for their drug trials.

This practice violates the principles of justice because the people in developing countries are mostly illiterates that don't the potential risks drug trials have.

The subjects of the trials are usually given some cash to participate in the trials. They consider it easy money.

Firm X develops and licenses its designs to be produced by outside manufacturers. Firm Y develops and manufactures its own designs. If the total invested capital of the two firms is the same, which likely has more equity capital and why

Answers

Answer:

Firm X

Explanation:

In simple words, since the firm X is asset heavy they will have more equity capital in their accounts. On average, companies that adopt asset-light models achieve higher profits. Both provide the identical invested capital, but X has more equity wealth so it can have higher returns on investments.

Thus, from the above we can conclude that the correct answer is firm X.

Phishing:_______
a) A con executed using technology, typically targeted at acquiring sensitive information, or tricking someone into installing malicious software.
b) A term that, depending upon the context, may be applied to either, 1) someone who breaks into a computer system, or 2) a particularly clever solution.
c) When someone uncovers computer weaknesses, without exploiting them.
d) When a protester seeks to make a political point by leveraging technology tools, often via system integration, defacement, or damage.

Answers

Answer:

a)

Explanation:

Phishing is a type of deception in which an intruder disguises himself in email or other means of communication as a reputable individual or person. Attackers would normally use phishing e-mails to spread a range of malicious links or attachments. Some people will gather login credentials or victims' account details.

So as per above definition only option A seems the correct alternative among al the other option when discussing about Phishing.

A con executed using technology, typically targeted at acquiring sensitive information, or tricking someone into installing malicious software.

You sold two EUR futures contract at the closing price on 3/01. Each EUR futures contract requires the delivery of EUR125,000. Suppose, the initial and maintenance margin for each EUR futures contract are $1,500 and $1,000, respectively. Assume that you do not withdraw from your margin account during this period, but that you do meet your margin calls if you get any

Date 3/01 3/02 3/03 3/04
EUR Spot Price $1.3579 $1.3527 $1.3588 $1.3580
July EUR Futures Contract Price $1.3750 $1.3782 $1.3827 $1.3713

The profit / loss posted to your account at the close of 3/02 is ______

Answers

Answer:

What

Explanation:

One out of every ten jobs falls into the marketing category.

True
False

Answers

Answer:

true

Explanation:

one out of every ten jobs falls into the marketing category

Microsoft sells two types of office software, a word processor it calls Word, and a spreadsheet it calls excel. Both can be produced at zero marginal cost. There are two types of consumers for these products, who exist in roughly equal proportions in the population: authors, who are willing to pay $120 for Word and $40 for excel, and economists who are willing to pay $50 for word and $150 for excel.
a. Ideally, Microsoft would like to charge authors more for Word and economists more for excel. Why would it be more difficult for microsoft to do this?
b. Suppose that Microsoft execs decide to sell word and Excel Seperately, what price should Microsoft set for word? (Hint: is it better to sell only to authors, or try to sell to both authors and economists?) What price should Microsoft set for excel? What will microsoft's profit be from a representative group of one author and one economist?
c. Suppose the Microsoft decides to bundle together Word and Excel in a package called Office, and not offer them individually. What price should Microsoft set for the package? Why? How much profit will Microsoft generate from a representative group of one author and one economist?
d. Does bundling allow Microsoft to generate higher profit than selling Word and Excel seperately?

Answers

Answer:

a

Explanation:

Petty Cash Fund Entries
Journalize the entries to record the following:
Check No. 12-375 is issued to establish a petty cash fund of $500.
The amount of cash in the petty cash fund is now $40. Check No. 12-476 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $212; miscellaneous selling expense, $156; miscellaneous administrative expense, $61. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $500, record the discrepancy in the cash short and over account.)
Petty Cash Fund Entries
Journalize the entries to record the following:
Check No. 12-375 is issued to establish a petty cash fund of $500.
The amount of cash in the petty cash fund is now $40. Check No. 12-476 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $212; miscellaneous selling expense, $156; miscellaneous administrative expense, $61. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $500, record the discrepancy in the cash short and over account.)
a. Journalize the entry to establish the petty cash fund. If an amount box does not require an entry, leave it blank.
b. Journalize the entry to replenish the petty cash fund. If an amount box does not require an entry, leave it blank.

Answers

Answer:

A. Dr Petty cash fund $500

Cr Cash $500

B. Dr Office supplies expenses $212

Dr miscellaneous selling expense $156

Dr miscellaneous administrative expense $61

Dr Cash short and over 31

Cr Petty cash fund $460

Dr Petty cash fund $460

Cr Cash $460

Explanation:

A. Preparation of the journal entry to establish the petty cash fund.

Dr Petty cash fund $500

Cr Cash $500

(To establish the petty cash fund)

B. Preparation of the journal entry to replenish the petty cash fund.

Dr Office supplies expenses $212

Dr miscellaneous selling expense $156

Dr miscellaneous administrative expense $61

Dr Cash short and over 31

($500-$212+$156+61+$40)

Cr Petty cash fund $460

($212+$156+$61+$31)

(To replenish the petty cash fund)

Dr Petty cash fund $460

($212+$156+$61+$31)

Cr Cash $460

Why wages differ
For each of the scenarios in the following table, indicate the most likely reason for the difference in earnings.
Scenario
Differences in Human Capital
Compensating Differential
Differences in Natural Ability
Labor Unions
An economics consulting firm hires Rina, a recent PhD graduate in economics, and pays her an annual wage of $76,000. It also hires Bob, a recent master's degree graduate in economics, and pays him an annual wage of $64,000.
Major league baseball pitchers earn more than minor league baseball pitchers.
Two automotive technicians have the same amount of schooling and work experience, but earn different wages. The first works the day shift for an auto manufacturer factory for an annual wage of $53,000 per year, and the second works the night shift for the same company for an annual wage of $64,000 per year.

Answers

Answer:

Scenario Differences In Human Capital Compensating Differential Differences In Natural Ability Labor Unions An Economics Consulting Firm Hires Rina, A Recent PhD Graduate In Economics, And Pays Her An ... For each of the scenarios in the following table, indicate the most likely reason for the difference in earnings.

Explanation:

Answer:

hehaba

Explanation:

PLEASE HELP!!

A wholesale company sold one of its trucks for $5,150. The truck cost $28,795 when it was
bought eight years ago.
a. What was the total depreciation on the truck for the eight-year period?

Answers

Answer:

the answer is 23,645. i hope this helps :)

Explanation:

please help me out with this problem ​

Answers

Answer: organizing

Explanation:

The correct answer is Organizing

has a standard of 2 direct labor hours per unit. The standard wage rate of each worker is $32.50 per hour. In July, the company produced 4,770 units and paid workers $190,000 for a total of 8,940 direct labor hours. Compute the direct labor efficiency variance.

Answers

Answer:

$130 Favourable

Explanation:

Given the above information,

Standard hours = 2 × 4770 = 9,540

Actual hours = 8,940

Standard rate = $32.50

Then, Direct labor efficiency variance is computed as

= ( Standard hours allowed for production - Actual hours taken) × Standard rate per direct labor hour

= [(2 × 4,770) - 8,940] × $32.50

= [9,540 - 8,940] × $32.50

= 600 × $32.50

= $130 Favourable

Roger must create a feasibility study to see how the money from the investor could be spent to best enhance the business's money-making potential. He knows there are several things that should go in the plan, but some are unnecessary. Which of the following does NOT belong in the feasibility study?

Answers

Answer: quality plan

Explanation:

A feasibility study is used to know if a project is feasible and therefore worth undertaking or not. It is an analysis that takes into consideration of all the factors that are relevant to the project into account. These factors include the technical, economic, legal, political factors etc in order to ascertain if the project will be successful.

The option that doesn't belong in the feasibility study is the quality plan. This isn't part of the feasibility study and therefore is the correct option. Other options belong in the feasibility study.

Quality plan: A feasibility study is used to know if a project is possible and therefore worth undertaking or not.

Who is Investor

It is an analysis that takes into consideration all the elements that are relevant to the project into account. These characteristics include the technical, economic, legal, political factors, etc. to ascertain if the assignment will be successful.

When The option that doesn't belong in the feasibility study is the quality plan. This isn't part of the feasibility study and therefore is the correct option. Other choices belong in the feasibility study.

Find out more information about Investor here:

https://brainly.com/question/24475209

Maestro Inc has a $1,000, 6% coupon bond with interest payable semiannually and a remaining term of 20 years. The market yield on similar bonds is 10%. What percentage of face value is the bond selling for today

Answers

Answer:

65.682%

Explanation:

The computation of the percentage is shown below;

But before that first determine the present value i.e.

Given that

Future value = $1,000

PMT = $1,000 × 6% ÷ 2 = $30

RTAE = 10% ÷ 2 = 5%

NPER = 20 × 2= 40

the formula is shown below;

= -PV(RATE,NPER,PMT,FV,TYPE)

After applying the above formula, the present value is $656.82

Now the percentage is

= $656.82 ÷ $1,000

= 65.682%

Other Questions
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