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Anni [7]
3 years ago
10

"If $120,000 is borrowed for a home mortgage, to be repaid at 9% interest over 30 years with annual payments of $11,680.36, how

much interest (as opposed to return of capital) is paid in the last year of the loan"
Business
2 answers:
Sunny_sXe [5.5K]3 years ago
8 0

Answer:

$964

Explanation:

to calculate this I will prepare a payment schedule on excel:

  • APR = 9%
  • principal = $120,000
  • n = 30 annual payments
  • payment = $11,680.36

the last years payments will include $964 paid in interests and $10,716 in principal

As more payments are made, the principal balance n the loan decreases, so the next payment will include less interests and more principal.

Download pdf
Elza [17]3 years ago
7 0

Answer:

$ 1,592,121.121

Explanation:

Present Value at T=0 is $120,000

N = 30

I = 9%

PMT = $11,680.36

We shall calculate the Future Value without PMT and then with PMT. The difference would be the amount of interest paid.

FV at T = 30 with PMT is -$3,184,242.537

FV at T = 30 without PMT is -$1,592,121.416

The total interest paid on the loan is = $ 1,592,121.121

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vazorg [7]

The following accounts which are classified as shareholders' equity are Additional paid-in capital, Common stock ,Retained earnings.

Option A, B, C is correct.

<h3>Shareholder Equity:</h3>

Shareholder Equity is the amount invested in the business by the owner of the business. This includes the money they have invested directly and the accumulation of earnings earned by the company that has been reinvested since its inception.

<h3>Is equity a liability or an asset?</h3>

Equity is the company's total assets minus total liabilities. It can be defined as the total amount of dollars that a company would be left with if it liquidated all its assets and paid off all its liabilities. This is then distributed to shareholders.

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5 0
1 year ago
How do you determine retained earnings at year end
Sonbull [250]

Explanation:

The retained earnings are calculated by adding net income to (or subtracting net losses from) the previous term's retained earnings and then subtracting any net dividend(s) paid to the shareholders. The figure is calculated at the end of each accounting period (quarterly/annually.)

Hope it helped u if yes mark me BRAINLIEST

4 0
3 years ago
Read 2 more answers
Charles wants to start a décor business and takes a loan of $35,000 from the bank to set up the business. Once the business is u
miv72 [106K]

Answer:

Sole Proprietorship

Explanation:

Charles is planning to start a sole proprietorship business. It is the most common form of business ownership.

This is the form of business owned, managed and operated by a single individual. Here, there is no distinction between the business and the owner. The owner of the business will have total control of all the profits incurred in the business and solely be responsible for all losses incurred as well.

5 0
3 years ago
Harry Trading Company must choose its optimal capital structure. Currently, the firm has a 20 percent debt ratio and the firm ex
AnnyKZ [126]

Answer:

They should not make the change because the price of the stocks will decrease.

Explanation:

the current price of the stocks using the perpetuity formula = dividend / required rate of return

current price with current capital structure = $5.64 / 0.123 = $45.85

if the company changes its capital structure by increasing debt, the price of the stocks will be

$5.92 / 0.136 = $43.53

since the price of the stocks would actually decrease if the capital structure changes, the change should not be made. The stockholders' wealth is measured by the price of the stocks, and if the price of the stocks decreases, then the stockholders' wealth also decreases.

4 0
3 years ago
People are going to be different. The focus of managers should be to ________. Group of answer choices make sure the practices w
Solnce55 [7]

Answer:

find ways to develop strong relationships with and engage the entire workforce.

Explanation:

People are going to be different. The focus of managers should be to find ways to develop strong relationships with and engage the entire workforce.

A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.

Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information. Also, they are required to engage their staff members (entire workforce) in the most efficient and effective manner.

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