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Healthcare Finance
What is the difference between simple interest and compound interest?
Simple interest is gauged on the basis of the loan's principal amount while the compound interest is derived on the basis of the principal amount and also the accumulated interest. Simple interest has been attained when one multiplies the principal amount with both interest rate as well as the payment period with in a loan. On the other hand, compound interest is derived when one multiplies the principal amount with one and add the resulting figure with the annual interest rate, which is elevated to the figure of compound periods subtracted by one (Horngren et al., 2012).
What is the formula for determining the future value of an amount?
The formula for calculating the future value of an amount is as follows:
Future Value = Present Value x (Future Value factor for n = number of years, i = certain percentage)
What is the future value of $10,000 for an interest rate of 16% and 1 annual period of compounding?
10,000 x ((1 + 0.16)1)
= $11,600
For an annual interest rate of 16% and 2 semi-annual periods of compounding?
10,000 x ((1 + 0.16)4-1)
10,000 x ((1 + 0.16)3)
= $15,608.96
For an annual interest...
Define an annuity
An annuity is defined as a fixed or predetermined amount of money that is paid to an individual every year, more often than not for the rest of his or her life.
5. In the future value annuity table at any interest rate for 1 year, why is the future value interest factor of this annuity equal to 1.00?
The values in the future value annuity table are generated by the formula:
FV = $1 ((1+i)^n - 1)/i if n = 1, that comes to be
FV = 1( 1+i)^1-1)/i
= 1( 1+i - 1)/i
= i/i
6. Explain the difference between a joint venture and a merger
A merger is a transaction where two companies come to the agreement to incorporate their operations in a rather co-equal manner for the reason that they have resources and capabilities that together might generate a stronger competitive advantage. On the other hand, a joint venture is the cooperation of two or more entities whereby each of the entities come to the agreement of sharing profit, loss and also control of operations in a particular enterprise. The major difference between the two is that with the…
References
Keat, P. G., Young, P. K. Y., & Erfle, S. E. (2013). Managerial Economics: Economic Tools for Today's Decision Makers. New York: Preason.
Horngren, C.T., Datar, S.M., and Rajan, M. (2012). Cost Accounting: A Managerial Emphasis. New Jersey: Prentice Hall, Fourteenth Edition.
Healthcare Finance What are the four sources of long-term debt financing? What are the five characteristics of long-term debt financing? Long-term debt is employed to finance business investments that have lengthier payback periods. There are four sources of long-term debt financing, which include: term loans, bonds, hire purchase and debentures. There are different features of long-term debt financing. One of the characteristics is that long-term debt typically has a greater principal balance
Healthcare Finance What are the four sources of long-term debt financing? What are the five characteristics of long-term debt financing? Long-term debt is employed to finance business investments that have lengthier payback periods. There are four sources of long-term debt financing, which include: term loans, bonds, hire purchase and debentures. There are different features of long-term debt financing. One of the characteristics is that long-term debt typically has a greater principal balance
Healthcare Finance In order to be successful in the present complex and frequently unfavorable business settings, a healthcare organization's strategic direction should be estimated, focused, and financially sustainable. Strategic business planning is an indispensable instrument to aid organizations focus strategic choices within the financial actualities of their environment. An efficient strategic business planning cycle includes making an evaluation, identification of business objectives, making strategies, performing an impact analysis and developing an
Healthcare Reform Revised We know that the burden of diseases is increasing all over the world. The percentage of people suffering from diabetes, cardiovascular and pulmonary diseases has considerably increased in the last decade. It is noteworthy here that the importance of preventive care now comes at par with the importance of curative care. Considering the prevalence of diseases and the health status of the American population, President Obama introduced a
constitute itself as a business plan for a heart hospital, with a determine goals to establish the main factors and outcomes that may determine both the outlet's utility and its success as an economic entity. We will aim to analyze the reason for investing in a heat hospital, the financial assumptions we are dealing with, as well as the risks associated with such a project. From the very beginning, we
Lack of accountability, transparency and integrity, ineffectiveness, inefficiency and unresponsiveness to human development remain problematic (UNDP). Poverty remains endemic in most Gulf States with health care and opportunities for quality education poor or unavailable, degraded habitats including urban pollution and poor soil conditions from inappropriate farming practices. Social safety nets are also entirely inadequate and all form part of the nexus of poverty that is widely prevalent in Gulf countries.