Nico establishes a seven-year, 8 percent loan with a bank ...

[jparksx]

Nico establishes a seven-year, 8 percent loan with a bank requiring annual end-of-year payments of 960.43. Calculate the original principal amount.
 
  What will be an ideal response?

Question 2

Which of the following is true of sole proprietorships and corporations?
 
  A) It is difficult to transfer ownership of corporations compared to that of sole proprietorships.
  B) Income from both forms of organizations are taxed only at the corporate level.
  C) Both sole proprietorships and corporations are equally scrutinized and regulated by government bodies.
  D) In sole proprietorships, owners have unlimited liability; whereas, in corporations, owners have limited liability.

[Pariscourtney]

Answer to Question 1

PVA = (960.43/0.08)1-(1/(1.08)7) = 5,000

Answer to Question 2

D

[jparksx]

TYSM

[amcvicar]

Excellent