1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alika [10]
3 years ago
11

You plan to borrow $40,000 at a 6% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year pay

ments. How much interest would you be paying in Year 2
Business
1 answer:
STALIN [3.7K]3 years ago
8 0

Answer:

Interest for second year $2,114.08

Explanation:

given data

loan Amount = $40,000.00  

Interest rate r = 6.00%  

time period t = 7  

solution

we get here first Equal Monthly Payment EMI that is express as

EMI = \frac{P \times r \times (1+r)^t}{(1+r)^t-1}      ................1

here P is Loan Amount and r is rate and t is time period  

put here value and we get  

EMI = \frac{40000 \times 0.06 \times (1+0.06)^7}{(1+0.06)^7-1}    

EMI = $7165.40  

now

we get here interest for second year that is

Closing balance at year 1 = opening balance + Interest - EMI Payment

Closing balance at year 1 =  $40,000  + $2400 - $7165.40  

Closing balance at year 1 =   $35234.60

so Interest for second year $2,114.08

You might be interested in
Data concerning Pony Corporation's single product appear below: Per Unit Percent of Sales Selling price $ 200 100 % Variable exp
Luda [366]

Answer:

$18,000

Explanation:

The computation of overall effect on the company's monthly net operating income is shown below:-

                                 Current                 Proposed

Sales                       $800,000               $837,000

                        (200 × 4000)     (200 - 14) × (4,000 + 500)

Variable expenses  $160,000             $180,000

                              (40 × 4000)  (40 × (4,000 + 500))

Contribution margin $640,000            $657,000

Fixed expenses     $531000                 $566,000

                                                  ($531,000 + $35,000)

Net operating

income                  $109,000                $91,000

Decrease in net operating income = Current - Proposed

= $109,000 - $91,000

= $18,000

So, for computing the overall effect on the company's monthly net operating income we simply applied the above formula.

8 0
3 years ago
Which of the following is a characteristic of a public good?
Rudiy27
The answer is B trust me
5 0
2 years ago
Match each scenario with the step in the home-buying process it describes
Tanzania [10]
1 closing,2 appraisal and 4 prequalification
5 0
3 years ago
Read 2 more answers
In addition to the problems stated here, what other issue contributed to the problems faced by Native Americans on the Great Pla
frez [133]
Thank you for posting your question here at brainly. I hope the answer will help you. Feel free to ask more questions.
i think the answer is B which is <span>Timber land was harvested, robbing Native Americans of a valuable resource</span>
5 0
3 years ago
Cobe Company has already manufactured 21,000 units of Product A at a cost of $15 per unit. The 21,000 units can be sold at this
bezimeni [28]

Answer and Explanation:

The computation is shown below;

Particulars                   Sell     process further  

sales                       $450,000      $1,209,000  

Relevant cost    

Process further cost $0               $290,000

Less: Total relevant cost  $0      $290,000  

Income                     $450,000      $629,000

Incremental income                          $179,000

The $1,372,000 is come from

= 5,800 units × $105 + 12,000 units × $50

= $609,000 + $600,000

= $1,209,000

Hence, the company should process further

7 0
2 years ago
Other questions:
  • Recent research suggests that ________ has/have contributed to the large drop in fertility rates in brazil over the past several
    13·1 answer
  • What often happens to stock prices when a recession in the economy is in the future?
    8·2 answers
  • Under what scenario could fiscal policy make a recession even worse?
    15·1 answer
  • You are interested in purchasing a new car and have done some research. One of the many points you wish to consider is the resal
    6·1 answer
  • If the price of chocolate-covered peanuts decreases from $1.10 to $0.90 and the quantity demanded increases from 190 bags to 210
    6·2 answers
  • Explain why monopoly is uncommon in the real world
    6·1 answer
  • 31. People might withdraw money from interest-bearing accounts,
    10·1 answer
  • A process can be balanced by moving work away from the _______ to unused capacity elsewhere in the process.
    13·1 answer
  • Aquatic Equipment Corporation decided to switch from the LIFO method of costing inventories to the FIFO method at the beginning
    6·1 answer
  • F ZMW 51,000 cash is paid to buy land, the land is reported on the buyer's balance sheet at ZMW 51,000.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!