Answer:
$4,541.67 per month.
Explanation:
From the question above, we see that the interest rate is 18%, therefore:
0.18 X 25,000 = 4,500 interest for one year.
But the loan is for 6months, that's half a year, therefore we have:
4,500 / 2 = 2,250 will be paid as interest for 6months.
The total amount paid monthly will therefore be spread evenly over 6months thus:
(2,250 + 25,000) / 6 = $4,541.67 will be paid per month.
The florist can handle this loan because she wants to complete the sale of an unused property.
The value of the money was not too long ago based on a country's own amount of gold. The value of money has not been based on anything since 1971. In fact, money is now founded on the abstract concept of confidence. Money's value is not more linked with the amount of gold held, but rather to how much trust in the economy of a particular country exists, and its debt (bond) markets are a proxy indicator of a country's level of trust. The less faith in an economy, the greater the return on risk will be required by market forces. The less trust there is, the less demand is for the bonds of a country. As the bond price falls, the bond's return increases. In comparison with the risk of making the loan, a trade takes place when the yield corresponds with the level of return investors willing. The 2009 Greek debt crisis is a simplistic example. With the Greek government's trust level falling, Greece's 10-year bonds ' yield started to increase from 5 to 30 percent when Greece defaulted on its debts.
The net income of the firm is $1,200
<h3>What is net income?</h3>
Net income refers to the amount an individual or business makes after deducting costs, allowances and taxes.
Net profit is also amount of money a business earns after deducting all operating, interest, and tax expenses over a given period of time.
First, we know that:
Return on equity
= Net income / Total equity
Fixing the given values, we'll have
20% = Net income / $6,000
Net income = $6,000 * 20%
Net income = $1,200
Therefore, net income of the firm is $1,200
Learn more about computation of net income here: brainly.com/question/24836146
Answer:
Lopez Sales Company
1. Amount of Gross Margin recognized by Lopez:
Sales = $81,600
Less cost of sales = $38,400
Gross Margin = $43,200
2. Amount of the gain on the sale of land recognized by Lopez:
Land:
Selling price = $81,000
less Cost = $43,200
Gain on sale = $37,800
Explanation:
a) Gross margin is the difference between the selling price and the cost price of a product. It is the profit determined before business running expenses are deducted to obtain the net income or margin.
It measures the ability of the business to generate enough income to cover expenses that are normally incurred in business, like rent, utilities, and salaries and wages.
b) The Gain on sale of any capital asset is the difference between the selling price and the cost (book value). This gain is reported separately in the income statement and is the subject of capital gains tax.