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Vera_Pavlovna [14]
3 years ago
5

On July 1, Shady Creek Resort borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each Jun

e 30 of $37,258. What amount of interest expense will be included in the first annual payment
Business
1 answer:
Vinvika [58]3 years ago
3 0

Answer:

Interest expense = $20,000

Explanation:

<em>Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.  </em>

The annual installment is computed as follows:  

Annual installment= Loan amount/annuity factor  

Annual installment is already given as = 37,258 (already given)

Interest payment = interest rate × Loan balance at the beginning of the year

DATA

Interest rate = 8%

Loan balance at the beginning of the year = $250,000

Interest expense = 8%× 250,000 = $20000

Principal paid = Annual installment - Interest = 37,258-20,000 = 17,258 <em>(this  is not required but to explain the concept)</em>

Interest expense = $20,000

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When the Office of National Drug Control Policy ran an ad with the headline, "Marijuana harmless? Didn't see the merging truck,"
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Answer:

Fear appeal

Explanation:

In order to know more about the answer, let's check out what advertising appeals are at first.

Advertising appeals are primarily used by professionals in their businesses in order to convince people to buy a product or to act against it. They tap on the emotional aspect of the buyers because they are deemed credible and powerful. There are many kinds of advertising appeals such as humor, fear, sex, nostalgic and guilt. However, we will be focusing on "fear appeal."

Fear Appeal- In marketing, fear appeal generally describes a strategy for motivating people in order to take particular action or divert behavior through threats. Such threats signal an impending harm.

The example above, "Marijuana harmless? Didn't see the merging truck," persuades that the use of Marijuana is harmful and in order to prevent having a negative experience, it is best to avoid or reduce the use or purchase of such item.

3 0
3 years ago
What is personal finance
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Personal finance<span> is the organizing your finances and making logical monetary decisions.</span><span> to the monetary decisions of an individual or family unit. It includes planning on your budget, savings, spending, resources, and wage. You must be careful with these decisions for future events and accidents can change plans.</span>
6 0
4 years ago
Read 2 more answers
Which of the following statements is most correct? Many large firms operate different divisions in different industries, and thi
Neporo4naja [7]

Answer:

All of the statements above are correct.

Explanation:

All of the following statements listed below are correct and true about business management;

1. Many large firms operate different divisions in different industries, and this makes it hard to develop a meaningful set of industry benchmarks for these types of firms.

Hence, industry average or benchmarks are more applicable to a small and medium enterprise than it's to large enterprises. The industry benchmark is a process that is focused on comparing an industry with other successful industries.

2. Financial ratios should be interpreted with caution because there exist seasonal and accounting differences that can reduce their comparability.

Hence, it is important to interpret financial ratios with care and reasonable logic as factors such as inflation and depreciation.

3. Financial ratios should be interpreted with caution because it may be difficult to say with certainty what is a "good" value is neither high nor low.

4. Ratio analysis facilitates comparisons by standardizing numbers.

Ratio analysis can be defined as the analysis and comparison  of various line items in the financial statements of a business such as the income statement or balance sheet, in order to gain insight into its operational efficiency, profitability and liquidity. Types of ratio analysis are liquidity, efficiency, solvency, market value, and profitability ratio.

8 0
4 years ago
On August 13, 2016, Bonita Services Co. purchased office equipment for $1390 and office supplies of $230 on account. Which of th
s2008m [1.1K]

Answer:

a. Equipment 1390 Supplies 230 Accounts Payable 1620

Explanation:

Based on the information given if On August 13, 2016 the Company purchased office equipment for the amount of $1390 and office supplies of the amount of $230 on account. The journal entries that is recorded correctly and in the standard format will be :

Dr Equipment $1,390

Dr Supplies$230

Cr Accounts Payable $1,620

($1,390+$230)

4 0
3 years ago
Suppose that on January 1, the cost of borrowing French francs for the year is 18%. During the year, U.S. inflation is 5%, and F
dedylja [7]

Answer:

-25.08%.

Explanation:

Given that, during the year, the franc devalued by (0.15 - 0.10)/0.15 = 33.33%.

Then, the nominal dollar cost of borrowing French francs, therefore, was 0.18(1 - 0.3333) - 0.3333 = -21.33%.

Thus, for each dollar's worth of francs borrowed on January 1, it cost only $1 - $0.2133 = $0.7867 to repay the principal plus interest.

Also, with U.S. inflation of 5% during the year, the real dollar cost of repaying the principal and interest is $0.7867/1.05 = $0.7492.

Subtracting the original $1 borrowed, it shows that the real dollar cost of repaying the franc loan is -$0.2508 or a real dollar interest rate of -25.08%.

8 0
4 years ago
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