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Vadim26 [7]
3 years ago
12

The seller was told by the bank that she has a prepayment penalty due at the time of closing. the penalty is 6 months' interest

on the current loan balance. based on 6% interest, her monthly payment is $569.57 principal and interest and her loan balance was $95,000 the month before closing. once she makes her next monthly payment, how much will she owe in prepayment penalty at the time of closing?
Business
1 answer:
algol133 years ago
3 0
Using the formula for compound interest:

The formula for annual compound interest, including principal sum, is:
A = P (1 + r/n)ⁿˣ

Where:

A = the future value = $95000
P = the principal investment amount = ?
r  = the annual interest rate = 0.06
n = the number of times that interest is compounded per year = 2
x = the number of years the money is invested = 0.5


95,000 = P (1 + 0.06/2)¹

95,000 = P (1.06/2)

95,000 = P (0.53)

P = 95,000 ÷ 0.53

P = 95,000 ÷ 0.53

P = 179,245.30

Total compounded interest = 179,245.30 - 95,000

Total compounded interest = 84,245
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8 0
2 years ago
Pujols Lumber Yard has a current accounts receivable balance of $365,061. Credit sales for the year just ended were $6,842,109.
jeka94

Answer:

19.48 days

Explanation:

Calculation to determine How long did it take on average for credit customers to pay off their accounts during the past year

First step is to determine the receivables turnover for the company using this formula

Receivables turnover = Credit sales / Receivables

Let plug in the formula

Receivables turnover = $6,842,109 / $365,061

Receivables turnover = 18.74 times

Now let determine l the day’s sales in receivables using this formula

Days’ sales in receivables = 365 days / Receivables turnover

Let plug in the formula

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Days’ sales in receivables = 19.48 days

Therefore How long did it take on average for credit customers to pay off their accounts during the past year is 19.48 days

3 0
2 years ago
A state constructs an office building. The construction is financed with: (1) a transfer of $1 million from the General Fund; (2
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Answer:

$8 million

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But the government grants are reduced from the cost of the the project. It is not recorded as other financing sources.

Also the earnings from bond proceeds shall not be considered for the other financing sources, as that is mere use of income.

Use of general fund in these capital projects will account for such other financing sources.

Cash received from issue of bonds for this project will also account for such capital fund.

Thus, total other financing sources = $1 million + $7 million = $8 million

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2 years ago
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7 0
3 years ago
The Family Restaurant chain had a 10% return on a $74,000 investment in new ovens. The investment resulted in increased sales an
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Answer: $185,000

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