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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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Net income under absorption costing is gross profit less Select one: a. cost of goods sold. b. fixed manufacturing overhead and
lukranit [14]

Answer:

d. variable selling and administrative expenses and fixed selling and administrative expenses.

Explanation:

We know that,

The net income under absorption costing would be

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= Net income

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The costs of goods sold = Opening inventory + manufacturing cost - ending inventory

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3 years ago
Relay Corporation manufactures batons. Relay can manufacture 300,000 batons a year at a variable cost of$750,000 and a fixed cos
sesenic [268]

Answer:

The total rise in income is $30,000

Explanation:

The computation is shown below:

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Less: Incremental cost  2.5   ($750,000 ÷ 300,000)

Increase in income per unit   0.50

Divide by Total units    60,000

Total increase in income   $30,000

Hence, the total rise in income is $30,000 and the same is to be considered

7 0
3 years ago
Willis Company made a $280,000 investment in new machinery. Assuming the company's margin is 7%, what income will be earned if t
uysha [10]

Answer:

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3 years ago
If a 10 percent increase in both capital and labor causes output to increase by less than 10 percent, the production function is
olasank [31]

Answer:

Because of economies and diseconomies of scale.

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Increasing returns to scale refers to the situation when a proportionate change in input leads to more than proportionate change in output. This may happen because of economies of scale.  

Economies of scale are said to happen when the average cost of production decreases with the increase in the volume of output.  

Decreasing returns to scale refers to the situation when a proportionate change in input leads to less than proportionate change in output. This may happen because of diseconomies of scale.  

Diseconomies of scale occur when a firm experiences an increase in the average total cost as the volume of output increases.

3 0
3 years ago
Identify the type of costs that would be considered incremental cost for a decision to close stores. (You may select more than o
Gemiola [76]

The incremental costs that can be deduced include the cost for materials, overhead, and labor that are associated with the actual closing process.

Incremental cost simply means the total cost that's incurred as a result of an additional unit of product that is being produced.

It's simply calculated by analyzing the additional expenses that were spent by the company. They are the cost for materials, overhead, and labor that are associated with the actual closing process.

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brainly.com/question/24516871

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