All categories

3 years ago

A company borrows 100,000 today at 12% nominal annual interest. the monthly payment of a 5 year loan is most nearly:

1 answer:

5 0

Formula for the monthly payment:
M = P * r * ( 1 + r )^n / (( 1 + r )^n + 1 )
where: P = $100,000 r = 0.12 : 12 = 0.01 n =12 * 5 = 60
M = 100,000 * 0.01 * ( 1 + 0.01 )^60 / (( 1 + 0.01 )^60 + 1 ) =
= 1,000 * ( 1.01 )^60 / (( 1.01 )^60 + 1 ) =
= 1,000 * 1.8167 / 0.8167 = 1,000 * 2.22444 =
= $2,224.44
The monthly payment is $2,224.44.

You might be interested in

Knowledge capital is nonrival in the sense that Select one: a. firms do not compete to be the first to develop new technologies.

inna [77]

Answer:

C. Two people can use the same knowledge to develop and produce a product

Explanation:

Knowledge capital can be regarded as

the value of an organization which is comprised of its knowledge, learned techniques as well as relationships and innovations. Knowledge capital

can as well be regarded as intellectual capital, which is intangible and brings great value to the company which in turn gives competitive edge over rivals.

It should be noted that Knowledge capital is nonrival in the sense Two people can use the same knowledge to develop and produce a product

6 0

3 years ago

Lisa Co. paid cash for all of the voting common stock of Victoria Corp. Victoria will continue to exist as a separate corporatio

lutik1710 [3]

Answer: worksheet

Explanation:

The entries for the consolidation of Lisa and Victoria would be recorded in a worksheet.

Consolidation worksheet refers to the tool that is used in the preparation of the consolidated financial statements of both a parent company and the subsidiaries.

The consolidation worksheet is important as it shows the individual book values for the parents company and the subsidiaries.

8 0

3 years ago

Cool Fan Company sells 10,000 units to wholesalers each year at $60 per unit. The materials cost $10 per fan and unit labor cost

eimsori [14]

Answer:

e. $ 350,000

Explanation:

Given: Total number of units= 10000.

Selling price= $60 per unit.

The material cost= $10 per fan

Labor cost= $15 per unit.

Promotion and marketing cost= $100000.

Facility expense= $80000.

Other overhead cost= $20,000.

Now, finding the variable cost of fan.

Variable cost= $Total\ material\ cost + Labor\ cost$

Variable cost= $(\$ 10\times 10000+ \$ 15 \times 10000)$

⇒ Variable cost= $\$ 100000+\$ 150000= \$ 250000$

∴ Variable cost= $250000.

Selling price= $(\$ 60\times 10000)= \$ 600000$

∴ Selling price of fan is $600000.

Unit contribution= $(selling\ price - variable\ cost)$

Next find the unit contribution of each fan.

⇒ Unit contribution= $(\$ 600000 - \$ 250000)$

∴ Unit contribution of each fan is $350000.

8 0

3 years ago

A CEO who communicates about the opportunities and challenges facing the company to employees at all levels and in all departmen

Firdavs [7]

Try looking for the worksheet with the answer key

4 0

3 years ago

Government policymakers decided to reduce the rate of inflation from 3% to 1.6%. As a result, the unemployment rate increased fr

andreyandreev [35.5K]

Answer:

Government policymakers decided to reduce the rate of inflation from 3% to 1.6%. As a result, the unemployment rate increased from 4.8% to 6.2%. The sacrifice ratio is:______

d. none of the above

Explanation:

a) Data and Calculations:

Old inflation rate = 3%

New inflation rate = 1.6%

Old unemployment rate = 4.8%

New unemployment rate = 6.2%

Ratio of old inflation rate to old unemployment rate = 3 : 4.8 = 0.625

Ratio of new inflation rate to new unemployment rate = 1.6% : 6.2% = 0.258

Sacrifice ratio = Difference between the two ratios = 0.367 (0.625 - 0.258)

b) The sacrifice ratio is the difference between the old ratio and the new ratio of inflation rate to unemployment rate.

6 0

2 years ago