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LekaFEV [45]
3 years ago
5

Donaldson's purchased some property for $1.2 million, paid 25 percent down in cash, and financed the balance for 12 years at 7.2

percent, compounded monthly. What is the amount of each monthly mortgage payment
Business
1 answer:
Leya [2.2K]3 years ago
6 0

Answer:

$9,352.27

Explanation:

25% of 1.2million

25/100×$1,200,000

=$900,000

Monthly mortgage Payment (p)=r(PV)/{1-(1+r)^-n}

Present value (PV)=$900,000

r=7.2%/12

=7.2/100÷12

=0.072/12

r=0.006

n= 144(12 years×12months)

P=r(PV)/{1-(1+r)^-n}

=0.006×$900,000/{1-

(1+0.006)^-144

=$5,400/{1 - (1.006)^-144}

=$5400/{1 - 0.4226}

=$5,400/0.5774

=$9,352.27

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On August 1, 2009 a company issues bonds with a par value of $600,000. The bonds mature in 10 years, and pay 6% annual interest,
Leya [2.2K]

Answer:

discount on BP   8,000 debit

cash                592,000 debit

bond payable                       600,000 credit

-to record issuance of the bonds--

interest expense     15,416.67 debit

  interest payable                     15,000      credit

  discount on BP                           416.67 credit

--to record year-end adjustment entry--

interest payable   15,000      debit

interest expense   3,083.33 debit

  cash                                       18,000    credit

  Discount on BP                         416.67 credit

-to record first interest payment to bondholders--

Explanation:

proceeds from the bonds:  592,000

face value of the bonds.    (600,000)

discount on BP                        (8,000)

We amortize over the life of the bond in equal parts:

8,000 / 20 payment (10years x 2 payment per year) = 500

interest accrued from August 1st to December 31th:

face value x rate x time accrued

600,000 x 6% x 5/12 = 15,000

accrued proportional amortization

amortizationfor 6 months x accrued month

from Augsut 1st to December 31th

500 x 5/6 = 416.67

February 1st payment:

600,000 x 6% x 1/12 = 3,000 interest expense

cash outlay:

600,000 x 6% x 6/12 = 18,000

amortization 500 - 416.67 = 83.33

8 0
3 years ago
A network structure is:
olga_2 [115]
None of the above
Explanation: The network structure is a newer type of organizational structure viewed as less hierarchical (i.e., more "flat"), more decentralized, and more flexible than other structures. In a network structure, managers coordinate and control relationships that are both internal and external to the firm.
8 0
3 years ago
Read 2 more answers
The production possibilities curve illustrates the basic principle that: Group of answer choices A) an economy will automaticall
ICE Princess25 [194]

Answer:

The correct answer is option C.

Explanation:

The production possibility curve shows the maximum possible bundle of two goods that can be produced using all the available resources and state of technology.

Since the resources are scarce, when we produce more of one good, we need to sacrifice more and more of the other good.

If all the resources in the economy are fully employed then it is not possible to increase the production of one good without decreasing the production of the other.

The economy can thus produce either on the production possibility curve or below it but not above it.

3 0
3 years ago
here are seven firms in the automobile industry. The market shares of the firms are 34​ percent, 21​ percent, 17​ percent, 9​ pe
Lemur [1.5K]

Answer:

The answer is  "Option 4".

Explanation:

The Herfindahl-Hirschman Index formula:

HHI=s_{12} + s_{22}  + s_{32} + s_{42} +........ + s_{n2}

here sn is the firm n's share of the market proportion represented the society in general number instead of a decimal

Index Herfindahl-Hirschman:

= (34)^2 + (21)^2 + (17)^2 + 92 + 82 + 62 + 52\\\\= 1156 + 441 + 289 + 81 + 64 + 36 + 25\\\\= 2092

Index Herfindahl-Hirschman(Result of the merger, firms with profit margins of 6% and 5% provided market shares of respectively).

= (34)^2 + (21)^2 + (17)^2 + 92 + 82 + 112\\\\= 1156 + 441 + 289 + 81 + 64 + 36 + 121\\\\= 2188

The market with just an HHI of less than 1,500 is called a competitive industry, one on an HHI of 1,500 to 2,500 is called a moderately competitive store, and one on an HHI of 2,500 or higher is considered a highly potent store by us Justice department.

All businesses operate in a moderately crowded market, as well as a merger such as this reduces competition (increases chances of monopoly). Also as result, the Justice Dept may examine its merger but will most likely deny this because the Herfindahl-Hirschman index has risen.

8 0
3 years ago
A firm operated at 80% of capacity for the past year, during which fixed costs were $210,000, variable costs were 70% of sales,
Fittoniya [83]

Answer:

The answer is: $90,000

Explanation:

We must first determine the cost of goods sold:

  • COGS = variable costs = 70% x 1,000,000
  • COGS = $700,000

I will assume all fixed costs are operating expenses.

Then we elaborate a simple income statement:

Sales                           $1,000,000

<u>COGS                           ($700,000)   </u>

Gross profit                   $300,000

<u>Operating expenses    ($210,000)   </u>  

Operating profit             $90,000

5 0
3 years ago
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