Answer and Explanation:
The computation is shown below:
As we know that
Monthly payment of a loan is given by
P = L [r(1 + r)^n] ÷ [(1 + r)^n - 1]
where,
P = Monthly payment = ?
r = Interst rate = 0.1 ÷ 12 = 0.00833
n = Term = 15 × 12 = 180
L = Loan amount = 900000
Now
P = $900,000 [0.00833(1 + 0.00833)^180] ÷ [(1 + 0.00833)^180 - 1]
= $9671.4461
Now
The Monthly payment for 30-year loan
P = $900,000[0.00833(1 + 0.00833)^360] ÷ [(1 + 0.00833)^360 - 1]
= $7898.1441
So,
Difference is
= $9671.4461 - $7,898.1441
= $1,773.3019
b.
Now
Total payment for 30-year loan is
= $7,898.1441 × 180
= $2,843,331.8871
And,
Total payment for 15-year loan is
= $9,671.4461 × 360
= $1,740,860.2907
So,
Difference is
= $2,843,331.8871 - $1,740,860.2907
= $1,102,471.60
i.e. option c
<span>Call cost per minute = $0.04
Number of minutes talked = 550
Call charges for 550 minutes @ $0.04 = $22
We should add the monthly charge of $6 to this call charges because that too is a part of our call cost. So the total cost would be $22 + 6 = 28.</span>
Answer: the correct answer is $210,000. The months is which the service was given were June, July, August, September, October, Nevember, December. The total service is $360,000 which means it is $30,000 monthly. (360,000 divided by 12). $30,000 times 7 months is $210,000.
Explanation: If a company is using the accrual basis accounting method it has to record its earned revenue when services are rendered, even though cash may be received at a later date..
Excess Demand is occurring.
This means that the amount of supply in a market cannot keep up with demand.
Answer:
A. 2 to 5 percent of sales
Explanation:
According to the text, management contracts usually stipulate that a fee of 2 to 5 percent of sales be paid to the firm providing the management expertise.
