Answer:
-$28.8.
Explanation:
Note, we were told,
- to assume the cost of a therm is $0.30
- the family uses 600 therms of energy annually.
<u>Savings on old furnace:</u>
- 600 * $0.30 * 0.80 (or written as 80%) = $144
<u>Savings on new furnace:</u>
- 600 * $0.30 * 0.96 (or written as 96%) = $172.8
Difference: $144 - $172.8 = -$28.8.
So in this case, you would need to find the present value (PV) of the monthly payments. With the information given, you would have a PV= 195,413.08, which is less than the lump sum payment. In this case, you would take the 1 time payment.
Another way to look at this is to calculate the future value (FV) of both payouts. For the lump sum payment, you would assume the same interest rate (6%) and at the end of the same 20 years period, your investment would be worth 662,040.90 while the monthly payment option would be worth 646,857.25
<span>A. A Bachelor's Degree
This has the highest rate of investment because with the other options like a high school diploma, the person who gets such certificate can only earn minimum wage. However, with a 4 years Bachelor's degree the person can earn more and will live according to certain societal standards.</span>
What amount should be recorded as Bad Debt Expense for the current year?
Not yet due:
22,000
Estimated Percentage Uncollectible: 3%
Estimated Amount Uncollectible: 660
Up to 120 days past due:
6500
Estimated Percentage Uncollectible: 14%
Estimated Amount Uncollectible:
910
Over 120 days past due:
2800
Estimated Percentage Uncollectible: 34%
Estimated Amount Uncollectible: 952
Estimated Balance in allowance for doubtful accounts: 2522
Current balance in allowance for doubtful accounts: 1200
Bad Debt Expense for the Year: 1322
Answer:
<u>Maximum Amount that can be loanded = $4139619</u>
Explanation:
DSCR = NOI / Debt Service
Debt Service = Principal + Interest
NOI = $ 500000
Debt Service = 500000 / 125 % = $ 400,000
The loan would be ammortized monthly over a period of 25 years.
Monthly Payment or EMI
E = P×r×(1 + r)n/ ((1 + r)n - 1)
12E = 400,000 = [P×r×(1 + r)n/ ((1 + r)n - 1)] * 12
or, P = 400000 / 0.0966272500154557 = $4139619
<u>Maximum Amount that can be loanded = $4139619</u>