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Anon25 [30]
3 years ago
7

On January 1, Year 1, the Mahoney Company borrowed $168,000 cash from Sun Bank by issuing a five-year 8% term note. The principa

l and interest are repaid by making annual payments beginning on December 31, Year 1. The annual payment on the loan based on the present value of annuity factor would be $40,725.The amount of principal repayment included in the December 31, Year 1 payment is:Multiple Choice$13,440.$37,467.$40,725.$27,285.
Business
2 answers:
Serggg [28]3 years ago
8 0

Answer:

Principal paid= $27,285

Explanation:

<em>The loan repayment is structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan and the accrued interest. This is called amortization.</em>

The amount of principal = Annual installment - interest due

Annual installment =  $40,725

Interest due =   interest rate × principal amount

                     = 8%× 168,000 =  $13,440

The amount of principal = $40,725   -  $13,440

                                         = $27,285

Fudgin [204]3 years ago
6 0

Answer:

The correct option is $27,285.

Explanation:

Annual interest =$168,000*8%

annual interest =$13,440.00  

Annual repayment=$40,725.00

Principal repayment=Annual repayment-interest repayment

principal repayment=$40,725.00-$13,440.00  

principal repayment=$ 27,285.00  

The correct option is last option.

The first option is wrong because it is the interest repayment,not principal repayment.

The third option is also wrong because it comprises both interest and principal repayments

The option is $37,467 does not feature in the computation in anyway

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arlik [135]

Answer:

The interest payable is calculated based on the principal, interest rate, number of years of the loan or of the deposit.

Explanation:

Financial institutions is a company or a firm that deals with financial and monetary activities such as; loans, deposits, investments and currency exchange. Most financial transactions especially loans and savings usually have an interest rate that is set by the financial institution. The amount of interest can be paid by the borrower in a case where an individual takes a loan from the financial institution. Interest can also be paid by the financial institution in a case where the individual or group opens a savings account with the financial institution. In both cases, the interest rate is set by the financial institution. The amount of interest payable can be determined using the formula below;

A=PRT

where;

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R=interest rate

T=number of years

The interest payable is calculated based on the principal, interest rate, number of years of the loan or of the deposit.

3 0
3 years ago
A region is in the middle of a very cold and snowy winter. As a result, hot chocolate has become more desirable, and many of the
Liula [17]

Answer:

2

Explanation:

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5 0
3 years ago
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Answer:

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Explanation:

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7 0
2 years ago
Market segmentation is
Juli2301 [7.4K]

Answer: Option (a) is correct.

Explanation:

Correct Option: Breaking down a large, heterogeneous market into sub markets that are more homogeneous.

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