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Alekssandra [29.7K]
3 years ago
8

A buyer with a 15-year, $250,000 loan at a 5.5% interest rate has a monthly principal and interest payment totaling $2,042.71. W

hat is the total amount of interest the borrower will pay over the course of the loan
Business
1 answer:
lorasvet [3.4K]3 years ago
8 0

<u>Given:</u>

Loan amount = $250000

Interest rate = 5.5%

Interest payment = $2042.71

<u>To find:</u>

Total amount of interest

<u>Solution:</u>

The total number of months in 15 years = 15\times12=180\text{ years }

Total monthly payments will be 180\times \$2042.71 = \$367687.8

So, the total pay-backs will be $3,67,687.8

Total interest paid will be as follows,

\text{Total interest paid = Total pay-backs - Loan amount}

On plugging-in the values in the above formula we get,

\Rightarrow \$3,67,687.8-\$250,000=\$1,17,687.80

Therefore, the total amount of interest that the borrower will pay over the course of the loan is $1,17,687.80.

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Suppose you manage a convenience mart and are in charge of ordering products but do not set the price. The home office provides
ollegr [7]

Answer:

The answer is: C) 10% more peanut butter on the shelves

Explanation:

To determine what you need to do with your peanut butter stock, you must first determine if the quantity demanded for peanut butter will increase or decrease and at what percentage. To do this we can use the following formula:

change in peanut butter sales = income elasticity of demand x average change in income

change in peanut butter sales = -5% x -20% = 10% increase

Since you expect a 10% increase in the quantity demanded for peanut butter, you should have 10% more peanut butter in stock

7 0
2 years ago
1. Identify which responsibility center would best describe the​ following: The production line of American​ Apparel, where clot
andreev551 [17]

Answer:1 B. Cost Center

2.A. Revenue Centre

3D. Investment Center

4 C. Profit Centre

Explanation:

The duty and power of a centre determined is responsibility centre a unit that is basically involved in production will be responsible for cost, a unit that is involved in sales will be a revenue centre, a unit that combines sales, production and asset will be an investment center and a unit that combines revenue and cost is a profit center.

6 0
3 years ago
A grain elevator operator bought a futures contract for 5,000 kilograms of rice at $1.50 per kilogram. The initial margin is $4,
Inessa05 [86]

Answer:

Given that,

Operator bought a futures contract = 5,000 kilograms of rice at $1.50 per kilogram

Initial margin = $4,000

Maintenance margin = $2,000

(a)

(i) Balance of Margin = Initial margin - maintenance margin

                                  = $4,000 - $2,000

                                  = $2,000 (loss)

(ii) Change in price = \frac{2,000}{5,000}

                               = $0.40

(b) Price per kilogram = Current price - Change in Price

                                     = $1.50 - $0.40

                                     = $1.10

So, change price per kg is $1.10

(c) Balance of Margin = Initial margin - maintenance margin

                                  = $4,000 + $2,000

                                  = $6,000 (loss)

Change in price = \frac{2,000}{5,000}

                               = $0.40

(d) Price per kg = Current price - change in price

                          = $1.50 + $0.40

                          = $1.90

3 0
3 years ago
Adjusting entries are Select one: a. usually required before financial statements are prepared b. not necessary if the accountin
Flauer [41]

Answer:

Correct option is (a)

Explanation:

Adjusting journal entries are passed before financial statements are prepared to so as to confirm if revenue recognition and matching principles are complied with. Adjusting entries are required to be passed if transactions is spread over multiple financial periods. For example, adjusting entry is passed if goods are received this year but payment will be made next year.

Before income statement and balance sheet is prepared, these entries are passed. Thereafter, adjusting trial balance is prepared and finally financial statements are prepared.

4 0
2 years ago
Having just returned from the war in Afghanistan, David has $25,000 in his savings account. His girlfriend suggests that he talk
nexus9112 [7]

Answer:

The correct answer is FALSE.

  • First it's not sound investment advice to put all his savings into an investment because as the narrative rightly points out, he may have other needs.
  • Second, high growth stock are also
  1. high risk
  2. they only pay in the long term only if the company is successful because dividends are re-invested which is one of the reasons the companies grow quickly.

Although they are high risk, they also have great advantages such as:

  1. High growth rate: this means if all goes well David will enjoy a good return on his investment;
  2. It's also a way to protect his money from erosion by inflation

What can David do?

Subject to the advise of a professional investment professional

  1. David needs to take into consideration his immediate needs, set aside some funds to take care of that.
  2. Invest the balance into a mix of high growth rate stock which are high yielding but risky and low growth rate but secure investment like government bonds.
  3. Start a small business by the side or get a job in the interim as he continues with his new life.

Cheers!

7 0
3 years ago
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