The correct statement is that the monthly payments on the purchase of a new car by Renee will be $655 on the interest rate of 11.34 percent for a period of four years.
The calculation of the value of the monthly payments to be made by Renee can be ascertained by computing all the costs of such transaction and then division by the number of months available.
<h3>Calculation of Monthly Payments</h3>
The total principal net value of the car comes down to $19945 after adding all the costs and deducting the trade-in value of the old car at 85% of the total value.
The formula for the calculation of total annuity is as below and the values given are being applied,
Now the monthly payments over a period of four years will be,
So, a monthly payment of $655 needs to be made in order to purchase such a car.
Hence, the correct statement is that the monthly payments on the purchase of a new car by Renee will be $655 on the interest rate of 11.34 percent for a period of four years.
Learn more about Monthly Payments here:
brainly.com/question/22891559
Answer:
The answer is B.
Explanation:
Available-for-sale is an equity or debt instrument that is not held to maturity. They are held for the purposes of trading or selling before its maturity. Businesses look for active buyers. They are being reported at their fair value.
If the fair value of this security (available-for-sale instrument) increases, the carrying amount is debited and changes in fair value in shareholders' equity is credited. If the fair value of the investments decreases, the carrying amount is debited and changes in fair value in shareholders' equity is debited.
Therefore, the loss of $2,000 is an adjustment in stockholders' equity on the balance sheet.
Answer:
$35,000
Explanation:
Given:
1% 35,000 preferred stock is outstanding.
Par value is $100
Amount of preferred stock outstanding = 35,000 × 100
= 3,500,000
Total dividend paid = $900,000
Since preference stockholders have an edge over equity stockholders regarding dividend. They are paid in fill and remaining amount is distributed among common stockholders.
Dividend paid to preferred stockholders = 0.01 × 3,500,000
= $35,000
Preferred stockholders receive $35,000. Remaining amount of $865,000 goes to common stockholders.
