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Artist 52 [7]
3 years ago
7

7. A borrower obtains a $100,000 mortgage loan for 30 years at a 7.5% interest rate. If the monthly payments of $902.77 are cred

ited first to interest and then to principal, what will be the balance of the principal after the borrower makes the first payment?
Business
1 answer:
ser-zykov [4K]3 years ago
3 0

Answer:

The principal​ balance is $99,722.23

Explanation:

For computing the principal balance, we need the following calculation which is shown below:

1. First we have to compute the 1 month interest payment which equals to

= Note amount × rate × 1 month ÷ total months in a year

= $100,000 × 7.5% × 1 ÷ 12

= $625

2. Now deduct the first month interest  from installment amount which equals to

= Installment amount - Interest amount

= $902.77 - $625

= $277.77

3. Now subtract step 2 amount from notes amount which equals to

= Notes amount - principal amount

= $100,000 - $277.77

= $99,722.23

Hence, the principal​ balance is $99,722.23

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Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisio
sleet_krkn [62]

Answer:

Osaka ROI is 28%

Yokohama ROI is 18%

Explanation:

The formula for return on investment =net income/average operating assets*100

For Osaka division:

net income is $749,000

average operating assets is $2,675,000

return on investment=$749,000/$2,675,000*100

                                  =28%

For Yokohama

net income is $3,330,000

average operating assets is $18,500,000

return on investment=$3,330,000/$18,500,000

                                  =18%

Even though Yokohama has a higher net operating income ,the Osaka division recorded a better performance using ROI as  a performance metric,which shows profit computation is an absolute figure which does not consider the amount of resources invested in  order to earn the profit

6 0
4 years ago
Equipment purchased for $85,000 on January 1, 2010, was sold on July 1, 2013 for $30,000. The company uses the straight-line met
gregori [183]

Answer:

B) $59,500

Explanation:

The equipment was purchased for 85,000 and has no salvage value which means that all 85,000 will be depreciated over it lifetime. It has a life of 5 years and because it uses straight line method it means that it will depreciate equally each year. The equipment is bought on JAN 1 2010 and sold on July 1 2013 which means that the equipment is used for 3.5 years and in order to find its depreciation we will divide 3.5 by 5 and multiply it by 85,000.

3.5/5*85,000=59,500

4 0
3 years ago
China is trying to develop its international trade in electronic components, but it lacks the money to be successful. from whom
SashulF [63]
China should seek assistance from the IMF or International Monetary Fund. According to the IMF, it works to nurture global growth and economic steadiness by providing policy, information and financing the members, by working with developing states to help them reach macroeconomic stability and decrease poverty. The basis for this is that private international capital markets function poorly and many countries have inadequate access to financial markets. Such market imperfections, together with balance-of-payments financing, offer the reasoning for official financing, without which many countries could solitary correct large external payment imbalances through actions with adverse economic consequences. Also, the IMF provides alternate sources of financing.
6 0
3 years ago
Starbucks purchases from coffee growers located in more than 20 countries. It pays the coffee farmers a fair price for the beans
kirza4 [7]

Answer: Sustainable Procurement.

Explanation:

Sustainable Procurement involves making purchase in such a way that makes it easy for the product bought to be reproduced for sale, as corporate social responsibility is considered when making purchase. Starbucks is making use of sustainable purchase in their transactions with the coffee farmers.

8 0
3 years ago
Many companies are replacing their annual inventory counts with daily cycle counts of smaller segments of inventory in order to_
andriy [413]

Answer:

a. reduce errors and catch any problems earlier

Explanation:

Daily inventory cycle counts allow companies to immediately identify variances in inventory and their causes. The organization can then put measures to address the problem. Detecting problems early and employing corrective measures prevent a business from incurring heavy losses as opposed to waiting until the end of a period for a stock take.

Organizations are opting for daily stock stocks for more accurate reporting, customer-friendly stock management, and early detection of inventory problems.

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