Answer:
<em>1) Monthly payments:</em>
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<em>2) Balance in ten years:</em>
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Explanation:
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<u><em>1. What are the monthly payments?</em></u>
The formula to compute the monthly payment of a loan is:
Where:
- Payment is the monthly payment
- r is the monthly interes rate: 8% / 12 = 0.08/12
- n is the number of months: 12 × 30 = 360
- Loan = $190,000
Substitute and compute:
<u><em>2. What would the loan balance be in ten years?</em></u>
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There is a formula to calculate the balance in any number of years:
![Balance=Loan(1+r)^n-Payment\times \bigg[\dfrac{(1+r)^n-1}{r}\bigg]](https://tex.z-dn.net/?f=Balance%3DLoan%281%2Br%29%5En-Payment%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B%281%2Br%29%5En-1%7D%7Br%7D%5Cbigg%5D)
Substitute with n = 10 × 12 and compute:
![Balance=\$190,000(1+(0.08/12))^{(10\times 12)}-\$1,394.15\times \bigg[\dfrac{(1+(0.08/12))^{(10\times 12)}-1}{(0.08/12)}\bigg]](https://tex.z-dn.net/?f=Balance%3D%5C%24190%2C000%281%2B%280.08%2F12%29%29%5E%7B%2810%5Ctimes%2012%29%7D-%5C%241%2C394.15%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B%281%2B%280.08%2F12%29%29%5E%7B%2810%5Ctimes%2012%29%7D-1%7D%7B%280.08%2F12%29%7D%5Cbigg%5D)
The lender and borrower agree to the amount borrowed, the loan amount, the interest rate and the monthly payment, which depend on the borrower's credit rating.Generally, real estate and auto loans are closed-end credit, but home-equity lines of credit and credit cards are revolving lines of credit or open-end.
Answer:
D) return on equity will increase.
Explanation: Return on equity is a financial term that explains the net income of a business venture. There are several ways through which the return on equity can be improved or increased in business.
(1) Reduction in the cost of operations or production of goods and services
(2) increase in the price of the product etc.
If the cost of producing a given Quantity of goods is reduced with sales remaining constant,THE RETURN ON EQUITY WILL INCREASE AS A RESULT OF THE INCREASE IN NET INCOME DUE TO REDUCED COST OF OPERATIONS OR PRODUCTION OF GOODS.
Answer:
The machine will enter as 148,480
Explanation:
We should enter the machine as the sum of all cost incurred to get the machine ready for use in behalf of the company.
Purchase cost: 136,000 x (1 - 0.02) = 133,280
shipping cost: (freigh-in) 3,600
installation cost: <u> 11,600 </u>
Total cost: 148,480
The damages will be cost of the period, therefore expenses.
It weren't necessary for the installation of the machine.
The stock market is where shares of public limited companies are traded. An example is the New York stock exchange.
