Aproperty was purchased for $10,000.00 down and quarterly payments of $1,350 for 10 years. if the first payment was made on the date of the purchase and interest is 5.5 % compounded quarterly, a. what was the purchase price of the property? b. how much is the cost of financing? c. what is the effective rate of interest equivalent to a nominal rate of 5.5 % compounded quarterly?

cost of financing is $12108.62

interest is 5.614 %

Step-by-step explanation:

given data

payment = $10000

principal = $1350

time t = 10 year = 10 × 4 = 40

rate  r = 5.5 % = 5.4 /4 = 1.375 %

to find out

purchase price and cost of financing and rate of interest

solution

we know here purchase price is calculated as

purchase price = payment + present value    .................1

present value = principal (1+r) ( 1- / r )

put here value

present value = 1350 (1+0.1375) ( 1- / 0.01375 )

present value = 41891.3833

so from equation 1

purchase price = 10000 + 41891.3833

purchase price = $51891.38

and

so amount of payment is here

amount of payment = 10000 + 40×1350

amount of payment = $64000

so here cost of financing is here

cost of financing = 64000 - 51891.38

cost of financing = $12108.62

and

so here

1 + interest =

1 + interest =

interest = 0.0561448

interest = 5.614 %

the population of other specie of birds will decline or other specie of birds will find some alternate source of food to survive.

explanation:

according to the competitive exclusion principle, which is also known as gause's law, two specie living in the same niche and feeding on the same resource cannot co-exist stably.

as we have well studied the theory of natural selection which states that only those organisms survive which have better tendency to compete for food and adapt to the environmental conditions.

coming towards the question, what wi ll happen when one species outcompetes the other for the small fish , the other specie will not get enough food and will start to die or decline in population. eventually either other specie needs to find another alternative food source for itself or migrate at some other location where there is less competition otherwise it will just not exist anymore at that niche.

hope it !