All you gotta do is have two answers first, and then choose which answer you find is the best or most helpful, and there will be a crown in the corner somewhere.
Answer:
Her Yearly Repayment will be approximately $5771
Explanation:
For an Amortized Loan, to calculate the payment amount per period, we use the formula:
A=[P(1+r)ⁿ]/[(1+r)ⁿ-1]
where A=Payment per period
P= Initial Principal/Loan Amount
r= Interest rate per period
n= number of payments period
From the information provided,
P=$20000
n=4 years
r=6%=0.06
Therefore Yearly Repayment Amount A=[Pr(1+r)ⁿ]/[(1+r)ⁿ-1]
=[20000X0.06(1+0.06)⁴]/[(1+0.06)⁴-1]
=[1200(1.06)⁴]/[(1.06)⁴-1]
=[1200X1.2625]/[1.2625-1]
=1515/0.2625
=$5771.43
Answer:
c) $5.68
Explanation:
The worth of this stock today is the present value of the future dividends which is computed by discounting future dividends as well as the terminal value using the required rate of return of 14.5% as the appropriate discount rate as shown thus:
Year 1 dividend=$.65
Year 2 dividend=$0.70
Year 3 dividend=$0.75
terminal value of dividends=Year 3 dividend*(1+g)/Ke-g
g=dividend terminal growth rate=2%
Ke=required rate of return=14.5%
terminal value of dividends=$0.75*(1+2%)/(14.5%-2%)=$ 6.12
Share price=$.65/(1+14.5%)^1+$.70/(1+14.5%)^2+$.75/(1+14.5%)^3+$6.12/(1+14.5%)^3
share price=$5.68
Answer:
$48,880
Explanation:
beginning principal $50,000
installment payment $5,120
effective interest rate 8%
since you first pay interest and then principal, we must calculate the amount of interest paid = $50,000 x 8% = $4,000
now we subtract the interest paid from the total payment = $5,120 - $4,000 = $1,120
so the principal was reduced by $1,120, that means that the new balance = $50,000 - $1,120 = $48,880
Answer:
A) Implementing the change quickly.
Explanation:
The company's controller is basically the chief accountant of the company. In this case, he/she is trying to focus on lowering costs and suggest a formal budgeting process might help. This is an essential thing that should have been done before, probably since the company started operating.
When essential and important activities are not carried out within a company, and suddenly someone realizes that it must be done, it may be seen as something bad. E.g. if it was really so important, why was it never done before?
As all important things, they cannot be rushed, and they have to be done with the largest possible support within the organization. This includes both management (who will feel pressured) and employers (who might believe it is a way to determine who should be fired).
