Answer:
i. How much do you owe on the loan today?
- remaining principal balance = $484,331.31
ii. How much interest did the firm pay on the loan in the past year?
- during year 2, $23,458 was paid in interests ($28,833.33 was paid in interest during year 1).
iii. Suppose starting next year (fourth year) the loan rate jumps to 7.2% APR. What is the remaining balance? What will be the monthly payment?
- the remaining balance at the beginning of year 4 is $475,916
- the new monthly payment will be $3,375.72
Explanation:
I prepared two amortization schedules using an excel spreadsheet. The principal on the loan was $500,000. The first one has a fixed 4.8% APR for the whole 30 years. In the second one, the APR changes to 7.2% at the beginning of year 4.
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Answer:
The value of m is Three (3)
Explanation:
The annualized return or annual return on investment s the percentage that tells you how much an investment has increased in value on average per year over a period of time.
Annual return can be a preferable metric to use over simple return when you want to evaluate how successful an investment has been or to compare the returns of two investments you've held over different time frames on equal footing.
Now, to calculate the annual returns,
We look up the current price and purchase price.
If the stock has undergone any splits, make sure the purchase price is adjusted for splits. If it isn't, you can adjust it yourself. For example, if you held a stock for 4 years, during which time it has had a 2:1 and a 3:1 split, then you can calculate your split-adjusted purchase price by dividing your purchase price by 6 (2 x 3).
Then we calculate the simple return percentage
After which we go ahead to annualize it.
Answer:
option C
Explanation:
In simple words, refers t the written statement that depicts the availability of funds in hand for a firm and hope they are gonna use it in future. Every organisation makes a budget so that they can use their resources in the most efficient way.
Budgets are made for the upcoming period but are based on the predictions made by the management and on the basis of past experiences. Thus, budgets should be made flexible and should be distributed to all the stakeholders as the real variable might diverge from the assumed variables. However budget should be in a realistic approach as they work as a major statement for evaluation.
Answer:
$50,400
Explanation:
To do this first start by multiplying .12 x 35,000. The answer should be $4,200. After this multiply 4,200 by 12 in order to get the amount of money earned over a 12 month period. This will give you $50,400.
