Answer: The managers of Kendall’s Home Decorators are making a projection for the future, also known as a <em><u>forecast.</u></em>
<em>Forecasting is know as the technique of predicting future supported on past and present event or data , commonly done by analyzing trends. </em>
<em>Here in this case the managers of Kendall’s Home Decorators are predicting the demand.</em>
<u><em>Therefore the correct option is (a)</em></u>
Answer:
total amount deposit at end of every 6 month is $445.37
Explanation:
Future value required= 4000
Total 6 months Period in 4 years (n) = 4*2 = 8
Interest rate 6.56% or 0.656 compounded Semiannual
semiannual interest rate (r) =0.0656/2= 0.0328
Future value of annuity formula = P *{ (1+r)^n - 1 } / r
4000 = P*(((1+0.0328)^8)-1)/0.0328
4000= P* 8.98
P = $ 445.37
total amount deposit at end of every 6 month is $445.37
Answer:
The one that has been operating for the past ten years.
Explanation:
This is so because, the bank will consider it of factors which will include:
1. the stage in the life cycle of the company.
2. the credit risk level of the company.
3. the attractiveness of the company to investors.
4. the going concern assumption of the company.
Overall, the interest rate will be dependent on the kind of credit rating of the company. for a company which has been existing for long and which is thriving, the credit rating will be low. hence the bank will be taking a lower risk in giving the loan; hence the lower interest.
However for a new entity with a higher credit risk, the bank is taking a high risk lending money to such company, hence it will loan the new company at a higher interest rate.
The answer which is an advantage of buying a home is tax benefits. You will get many benefits from buying a home, more than if you were renting it.
