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ale4655 [162]
3 years ago
13

John was given a choice of loans of $8,000 with the following characteristics: a) $1,200 in interest paid at the end of the peri

od b) $1,200 in interest paid at the beginning of the period c) $1,200 paid equally over the period with part of the principal retired each month Calculate the interest rate paid. In part (3) calculate using both the approximate method and the actual cost method assuming a one-year loan retired in 12 equal monthly installments of interest and principal.
Business
1 answer:
Natalija [7]3 years ago
5 0

Answer:

According to each choice, this is the result: a) 15% annual interest rate b) 35,29% annual interest rate and c) 26,62% annual interest rate.

Explanation:

In choice a) you receive 8.000 but paid 9.200 (8.000 capital + 1.200 interest). In choice b) Even though the loan has the same value, you receive 6.800 (8.000 capital -1.200 interest) and you have to pay 9.200 (8.000 capital + 1.200 interest). In choice c) You receive 8.000 but monthly you have to pay $766,67 of instalments for 1 year. So you will pay 9.200 in total at the end (8.000 capital + 1.200 interest) but early payments than choice a) and in finance money is value in time towards the reform and respect of the inmate population.

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Foods Galore is a major distributor to restaurants and other institutional food users. Foods Galore buys cereal from a manufactu
Oksanka [162]

Answer:

The appropriate solution is:

(a) 2828 cases each time

(b) $4005656.85

(c) $3609800

Explanation:

The given values are:

Annual demand,

D = 200,000 cases

Per case cost,

C = $20

Carrying host,

H = 10 \ percent\times 20

  = $2

Ordering cost,

S = $40

(a)

The economic order quantity will be:

⇒ Q^*=\sqrt{(\frac{2DS}{H} )}

On substituting the values, we get

         =\sqrt{[\frac{(2\times 200000\times 40)}{2} ]}

         =\sqrt{\frac{16000000}{2} }

         =2828

(b)

According to the question,

The annual ordering cost will be:

=  (\frac{D}{Q^*}) S

=  (\frac{200000}{2828}) 40

=  2828.85 ($)

The annual carrying cost will be:

=  (\frac{Q^*}{2})H

=  (\frac{2828}{2} )2

=  2828 ($)

The annual purchase cost will be:

=  D\times C

=  200000\times 20

=  4000000 ($)

Now,

The total inventory cost will be:

=  2828.85+2828+4000000

=  4005656.85 ($)

(c)

According to the question,

Order quantity,

Q = 10000 cases

Per case cost,

C = $18

Carrying cost,

H = 10 \ percent\times 18

   = 1.8

The annual ordering cost will be:

=  (\frac{D}{Q} )S

=  (\frac{200000}{10000} )40

=  800 ($)

The annual carrying cost will be:

=  (\frac{Q}{2} )H

=  (\frac{10000}{2} )1.8

=  9000 ($)

The annual purchase cost will be:

=  D\times C

=  200000\times 18

=  3600000

Now,

The total cost of inventory will be:

=  800+9000+3600000

=  3609800 ($)

8 0
3 years ago
Ellen and Uncle Moneybags make a contract where Ellen will buy Uncle Moneybags’ boat for $100,000 if Ellen gets a T.V. show cont
Tom [10]

When Ellen sues Uncle Moneybags for the $10,000, the type of equitable remedy would be restitution.

<h3>What is restitution?</h3>

It should be noted that restitution simply means the restoration of a particular thing that's lost or stolen.

In this case, when Ellen sues Uncle Moneybags for the $10,000, the type of equitable remedy would be restitution.

Learn more about restitution on:

brainly.com/question/10444717

6 0
2 years ago
A personal financial statement is also called which of the following?
Phantasy [73]

Answer:

The term personal financial statement refers to a document or spreadsheet that outlines an individual's financial position at a given point in time. The statement typically includes general information about the individual, such as name and address, along with a breakdown of total assets and liabilities. The statement can help individuals track their financial goals and wealth, and can be used when they apply for credit.

3 0
3 years ago
Our newly constructed retail space is projected to need a face lift in 7 years to keep up with changing tastes. Our projections
Rudiy27

Answer:

Annual deposit = $326,265.88  

Explanation:

<em>The amount to be set aside annually to accumulate $2.5 million in 7 years time ca n be worked out using the future value of an ordinary annuity formula.</em>

The formula is given as follows:

FV = A×( (1+r)^n - 1)/r).

A= FV/ ((1+r)^n - 1)/r

FV - Future value

A- annual deposit

n- number of years

r- rate of return

FV - $2.5 million

A- ?

n- 7

A=2,500,000 ÷ (1.03^7 - 1)/0.03 =  326,265.88  

Annual deposit = $326,265.88  

4 0
3 years ago
Which organization requires a 90 day supply of oil (links to an external site.)links to an external site. (known as the strategi
lora16 [44]
<span>The organization that requires a 90-day supply of oil is the International Energy Agency (IEA). Each country in the organization must stock an amount of petroleum equivalent to this amount because of the organization's obligations.</span>
8 0
3 years ago
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