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Simora [160]
3 years ago
8

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

Business
1 answer:
alex41 [277]3 years ago
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.
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C. Nataly typically probes with tough, incisive questions

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3 years ago
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4 years ago
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Bonita Company had the following department information about physical units and percentage of completion: Physical Units Work i
Ahat [919]

Answer:

Equivalent units of production= 229,300

Explanation:

Giving the following information:

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Work in process, May 31 (40%) 49800

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3 years ago
Consider the following hypothetical facts about Mexico: The peso recently lost over 40% of its value relative to the dollar. Ove
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Answer:

The annualized return of the investment is R=0.286 or 28.6%.

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2) The Mexican government don't lose contol of the economy. Probability: 75%

In the Case 1, the local stock market will fall by 10% and the peso will lose 20%.

The return in dollars can be calculated as:

R=(1+\Delta SM)/(1-\Delta P)-1=(1-0.10)/(1+0.2)-1\\\\R=0.90/1.20-1=0.75-1=-0.25

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For the Case 2, we have that the local stock market will rise by 5% and the peso will appreciate by 5%.

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R=(1+\Delta SM)/(1-\Delta P)-1=(1+0.05)/(1-0.10)-1\\\\R=1.05/0.90-1=1.17-1=0.17

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E(R)=\sum p_iR_i=p_1R_1+p_2R_2=0.25*(-0.25)+0.75*(0.17)\\\\ E(X)=-0.0625+0.1275=0.065

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