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ololo11 [35]
3 years ago
7

Sam is comparing the costs of two loans. The principal amount of each loan is $5,000. One is due in one year and the other is du

e in four years. Both have the same stated rate of annual interest. Which of the following is truea. the princpal paid for the one-year loan will be lower than the princpal paid for the four-year loanb. the princpal paid for the one-year loan will be higher than the princpal paid for the four-year loanc. the interest charges for the one-year loan will be higher than the interest charges for the four-year loand. the interest charges for the one-year loan will be lower than the interest charges for the four-year loane. the interest charges and princpal payments cannot be compared for the two loans
Business
2 answers:
Naya [18.7K]3 years ago
8 0

Answer:

b. the princpal paid for the one-year loan will be higher than the princpal paid for the four-year loan

d. the interest charges for the one-year loan will be lower than the interest charges for the four-year loan

Explanation:

Sam is comparing the costs of two loans.

The principal amount of each loan is $5,000.

One is due in one year and the other is due in four years.

Both have the same stated rate of annual interest.

Two of the following are true:

<u>b. the principal paid for the one-year loan will be higher than the principal paid for the four-year loan.</u>

Considering the time value of money, $5000 principal repayment in one year time discounted at 5% will be 5000/1.05^1 = $4,761 but if repaid in 4 years = 5000/ 1.05^4 = $4,113.5

d. the interest charges for the one-year loan will be lower than the interest charges for the four-year loan

5% on 5,000 for 1 year = $250 but if paid for 4 years will be 250 x 4 = $1000

Liono4ka [1.6K]3 years ago
8 0

Answer:

D) the interest charges for the one-year loan will be lower than the interest charges for the four-year loan

Explanation:

Even though the principal and the APR are the same for both loans, the duration of the loans change the total interest charged by the lender. The longer the repayment period, the most interests you are going to pay.

We can use a loan calculator to determine the total interest charged on both loans:

  • loan 1, principal = $5,000, interest rate = 10%, n = 1 year ⇒ total interest charged = $274.95
  • loan 2, principal = $5,000, interest rate = 10%, n = 4 years ⇒ total interest charged = $1,087.02

The monthly payment is lower for the second loan, but the total interest paid during the four years is much higher.

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Before the year began, Murphy Manufacturing estimated that manufacturing overhead for the year would be $176,000 and that 13, 70
saveliy_v [14]

Answer:

A. $194, 035

Explanation:

Predetermined Manufacturing overhead Rate = Estimated total overheads / Estimated direct labor hours

Predetermined Manufacturing overhead Rate = $176,000 / 13,700

Predetermined Manufacturing overhead Rate = $12.85 /  direct labor hour

Actual Labor hours = 15,100 hours

Manufacturing overhead allocated = $12.85x 15,100

Manufacturing overhead allocated = $194,035

The correct option is A. $194, 035

7 0
3 years ago
How does brainstorming improve the final product
sveta [45]
It gives you more ideas to make the final product better than what it original product
6 0
3 years ago
Your phone service provider offers a plan that is classified as a mixed cost. The cost per month is $50 flat rate for the first
fomenos

Answer:

$120

Explanation:

The computation of the cost is shown below:

= Cost per month flat for 1,000 units + extra cost if exceeded 1,000 minutes

where,

Cost per month flat for 1,000 units = $50

And, the extra cost is

= $0.35 × 200 minutes

= $70

So, the total cost is

= $50 + $70

= $120

The 200 minutes is come from

= 1,200 minutes - 1,000 minutes

4 0
3 years ago
An employee earns $6,350 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $118,500
Vlad1618 [11]

Answer:

$965.075

Explanation:

Payroll taxes for the month of January is = FICA +FUTA +SUTA+

federal income taxes withheld+voluntary deductions for health insurance +contributes retirement plan.

= (0.0145*6350) +(0.006*6350)+(0.054*6350)+216+184+92

= 92.075+38.1+342.9+216+184+92

= 965.075

$965.075

Some money like Social Security is 6.2% of the first $118,500( not added because he's earnings are not up to $118500 and it's yearly stuff) and unemployment taxe is not added because his earnings is not up to $7000

7 0
3 years ago
Longordia Foods is expecting to generate after-tax income of $1,558,888, $2,933,312, and $3,261,712 for each of the next three y
Digiron [165]

Answer:

30.86%

Explanation:

It is a financial ratio used for the capital budgeting. It is the ratio of the average return generated by the capital asset and the its average book value in the given period.

Formula for ARR is as follow

ARR = Average Net Income  / Average Investment

Average Net Income = ( $1,558,888 + $2,933,312 + $3,261,712 ) / 3

Average Net Income = $2,584,637

Average Investment = $8,375,000

Placing values in the formula

ARR = $2,584,637 / $8,375,000

ARR = 0.3086 = 30.86%

6 0
3 years ago
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