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Elanso [62]
4 years ago
12

After Shipra got a job, the first thing she bought was a new car. She took out an amortized loan for $20,000—with no ($0) down p

ayment. She agreed to pay off the loan by making annual payments for the next four years at the end of each year. Her bank is charging her an interest rate of 6% per year. Yesterday, she called to ask that you help her compute the annual payments necessary to repay her loan.
Business
1 answer:
PolarNik [594]4 years ago
3 0

Answer:

Her Yearly Repayment will be approximately $5771

Explanation:

For an Amortized Loan, to calculate the payment amount per period, we use the formula:

A=[P(1+r)ⁿ]/[(1+r)ⁿ-1]

where A=Payment per period

P= Initial Principal/Loan Amount

r= Interest rate per period

n= number of payments period

From the information provided,

P=$20000

n=4 years

r=6%=0.06

Therefore Yearly Repayment Amount A=[Pr(1+r)ⁿ]/[(1+r)ⁿ-1]

=[20000X0.06(1+0.06)⁴]/[(1+0.06)⁴-1]

=[1200(1.06)⁴]/[(1.06)⁴-1]

=[1200X1.2625]/[1.2625-1]

=1515/0.2625

=$5771.43

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In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures from histori
pychu [463]

Answer:

$19,708,745

Explanation:

We first have to calculate the present value of the bonds:

Nper = 20 (10 years x 2 payments per year)

R = 11% / 2 = 5.5%

Payment = 83 / 2 = 41.50

Future value = 1,000

PV = ?

To calculate the present value we can use an excel spreadsheet and the present value function =PV(5.5%,20,41.5,1000) = $838.67

Now we calculate how many bonds were issued = $23,500,000 / $1,000 = 23,500 bonds.

To determine the market value of the debt outstanding we multiply the present value of the bonds times the total number of bonds outstanding

= $838.67 x 23,500 = $19,708,745

8 0
3 years ago
Suppose that fertilizerfertilizer is necessary to produce wheatwheat. if the price of fertilizerfertilizer fallsfalls​, the supp
asambeis [7]

Answer: Shift to the right

Explanation:

Fertilizers are an important input in wheat production. When the price of fertilizers fall, it leads to a decrease in cost of producing wheat. Thus, producers will supply more wheat in the market. As a result the supply curve for wheat will shift to the right leading to a fall in the price of wheat and an increase in the quantity of wheat sold in the market.

4 0
4 years ago
Last month a company had net sales revenues of $10,000; Cost of goods sold of $4,000; other operating expenses of $3,000; non-op
Pie

Answer:

The correct answer is B. 6.000

Explanation:

Gross profit only includes Sales Revenues and cost of goods sold. So you have to ignore all others. In this case the solution is given for  Sales Revenues 10.000 -  cost of goods sold 4.000 = Gross profit 6.000. Hope it helps

6 0
3 years ago
Suppose housing prices and stock prices decline significantly and cause autonomous consumption spending to decrease by $200 bill
kirill [66]

Answer: The change will be $400 billion.

Explanation: The marginal propensity to consume (MPC) is used to explain that increase in consumption is as a result of increase in income.

To calculate how much the equilibrium real GDP will change:

STEP1: CALCULATE THE MULTIPLIERS

multipliers = 1 ÷ (1 - MPC)

Where MPC = 0.

Therefore;

Multipliers = 1 ÷ (1 - 0.5) = 1 ÷ 0.5

Multipliers = 2

STEP 2: CALCULATE HOW MUCH THE EQUILIBRIUM REAL GDP WILL CHANGE;

Multipliers × change in consumption spending

2 × $200 billion = $400 billion

Equilibrium real GDP will change with $400 billion

4 0
4 years ago
Identify the two independent clauses in the following compound-complex sentence.
krek1111 [17]

The two independent clauses in the following compound-complex sentence are.

  • The production manager supported the changes.
  • He expected the process to work smoothly.

<u>Explanation:</u>

Compound sentence and complex sentence together makes a compound- complex sentence. A Clause is a sentence which has one subject or one verb.

The independent clause is a sentence which does not need a supportive sentence to explain it's situation and it makes a statement or asks a question.

And dependent clause is a sentence which begins with when, because, if etc. Therefore, the independent caluses will be the above given two sentences as they are statements and do not need a supportive statement.

5 0
3 years ago
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