A company must repay the bank a single payment of $20,000 cash in 3 years for a loan it entered into. The loan is at 8% interest compounded annually. The present value of 1 (single sum) at 8% for 3 years is 0.7938. The present value of an annuity (series of payments) at 8% for 3 years is 2.5771. The present value of the loan (rounded) is:

The present value of the loan is $15,877

Explanation:

Solution

Given that:

A company must pay back the bank a single payment of =$20,000

The loan of interest = 8%

Present value of 1 = 8% for 3 years (0.7938)

Present value of annuity = 8% for 3 years (2.5771

Now,

We solve for the loan present value

which is,

$20,000 * 0.7938 =$15, 877

For the annuity (series of payment) = $20,000 * 2.5771

= $51,542

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

answer; monopolistic competition;