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Bond [772]
3 years ago
8

First Financial Auto Loan Department wishes to know the payment required at the first of each month on a $10,500, 48-month, 11%

auto loan. To determine this amount, First Financial would:
A. Multiply $10,500 by the present value of 1.
B. Divide $10,500 by the future value of an ordinary annuity of 1.
C. Divide $10,500 by the present value of an annuity due of 1.
D. Multiply $10,500 by the present value of an ordinary annuity of 1.
Business
1 answer:
julia-pushkina [17]3 years ago
7 0

Answer:

First Financial would divide the $10,500 loan by the present value of annuity due of 1.

The correct answer is C

Explanation:

Present value of annuity formula is used for determining the amount                   of loan payment. Since the payments will be made at the beginning of each month, we will apply the formula for present value of annuity due. In order to determine the amount of monthly payment, we will divide the principal by the present value of annuity due of 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

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The common stock of Dayton Repair sells for $43.19 a share. The stock is expected to pay $2.20 per share next year when the annu
mihalych1998 [28]

Answer: 7.35%

Explanation:

Based on the information given, the market rate of return on this stock will be calculated as:

= (D1/P0) +G

where,

D1= Dividend at year 1 = 2.20

P = price at present =43.19

G = dividend growth rate =2.25%

We then slot the figures into the formula and we will get:

= (D1/P0) +G

= (2.20 / 43.19) + 2.25%

= 0.051 + 2.25%

= 5.1% + 2.25%

= 7.35%

Therefore, the market rate of return will be 7.35%.

4 0
3 years ago
Lidell Inc. budgeted production of 48,000 personal journals in 20Y6. Each journal requires assembly. Assume that three minutes a
mote1985 [20]

Answer:

Direct labor cost= $31,200

Explanation:

Giving the following information:

Production= 48,000 units

Standard time= 3 minutes per unit

Rate= $13 per hour

First, we need to calculate the number of hours required:

The proportion of minuted per hour= 3/60= 0.05

Number of hours= 48,000*0.05= 2,400 hours

Now, the direct labor cost:

Direct labor cost= 2,400*13= $31,200

7 0
3 years ago
How can businesses deal with lack of vision and mission​
lesantik [10]
Because it does that so you will need ramen noodles and chalk to draw grass to chickens can grow in the sky.
8 0
3 years ago
Tuity fruity beverage​ company's operating activities for the year are listed below. purchases ​$140 comma 500 operating expense
Greeley [361]

Answer:

$135,100

Explanation:

Given :

Cost of purchasing: $140,500

Operating expenses :$80,600

beginning inventory:$12,900

Ending inventory:$18,300

sales revenue :$300,700

Gross profit of the year can be determined by

Cost of purchasing + beginning inventory - Ending inventory

=140,500 + 12,900 -18,300

=$153,400-$18,300

=$135,100

8 0
3 years ago
Tax savings generated from deductions are considered cash inflows.
lubasha [3.4K]
Tax savings generated from deductions are considered cash inflows.

Answer: false

Hope this helps
3 0
3 years ago
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