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melamori03 [73]
3 years ago
15

On March 4 of 1999, XYZ Corporation takes out a $1 million loan. The company pays the interest semiannually. The six-month inter

est rate is six-month LIBOR 80 basis points, with a cap at 9.25%. Assume that LIBOR is at 8.5% on March 4, 1999, and 7.75% on September 4, 1999. What is the second interest payments on the loan
Business
1 answer:
Alex73 [517]3 years ago
5 0

Answer: $85,500

Explanation:

From the question, we are told XYZ Corporation takes out a $1 million loan and the interest on the loan is paid semiannually.

We are also told that the six-month interest rate is six-month LIBOR 80 basis points, with a cap at 9.25%. Assume that LIBOR is at 8.5% on March 4, 1999, and 7.75% on September 4, 1999.

The second interest payments on the loan will be:

The interest rate will be:

Interest rate = LIBOR + 80bps

= 7.75 + 0.8

= 8.55%

Interest paid in the second period

= $1,000,000 × 8.55%

= $1,000,000 × 0.0855

= $85,500

Note that there is no need for using the cap since the interest didn't exceed 9.25%

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Productivity in the United States doubled between 1945 and 1990. However, the work week didn't get shorter because
mel-nik [20]

Answer:

the standard of living increased

Explanation:

Between the years 1948 and 1990, the level of productivity in the United States of America increased tremendously, to the extent that it was in the doubled fold. Consequently, this increase in the level of productivity simply exemplified that, there is a substantial increase in the standard of living for the average American.

Hence, it can be concluded that, in this case, the workweek didn't get shorter because "the standard of living increased."

3 0
3 years ago
If the buyer also paid a 3% real estate agent commission, what was the total amount paid at closing? a. $2,499 b. $5,550 c. $6,4
nika2105 [10]

Based on the various costs paid at closing, the total amount that was paid was <u>d. $7,499.</u>

<h3>Commission paid to agent</h3>

= Cost of house x Commission

= 3% x 180,000

= $5,550

<h3>Total amount paid at closing</h3>

= Commission + Loan origination + Title insurance +Attorney fees + Appraisal cost + Recording fees

= 5,550 + 275 + 528 + 750 + 275 + 121

= $7,499

In conclusion, the total paid at closing is $7,499.

Find out more on closing costs at brainly.com/question/26133271.

5 0
2 years ago
Samantha owned 1,000 shares in Evita, Inc., an S corporation, that uses the calendar year. On October 11, Samantha sells all of
zaharov [31]

Answer:

Option "D" is the correct answer to the following statement.

Explanation:

Given:

Stock basis at opening = $60,000

Ordinary income for the  Taxable year = $22,000

Distribution receive = $35000

Computation of stock at the time of sales.

Stock at the time of sales = Stock basis at opening + Ordinary income for the Taxable year - Distribution receive

= $60,000 + $22,000 - $35,000

= $82,000 - $35,000

= $47,000

8 0
3 years ago
Knowledge Check 02 Mountain Top, Inc., owns a coal mine with a depletion rate of $4 per ton of coal. A total of 100,000 tons wer
Goryan [66]

Answer:

Explanation:

The journal entry is shown below:

Depletion expense A/c Dr $320,000

Coal inventory A/c $80,000

     To Accumulated depletion $400,000

(Being the entry is recorded)

The computations are shown below:

1. For Depletion expense

= 80,000 tons × $4 per ton of coal

= $320,000

2. For accumulated depreciation

= 100,000 tons × $4 per ton of coal

= $400,000

3 0
3 years ago
a form of bank service which automatically takes money out of the checking account at this point of sales is called a
viva [34]
A debit card is a form of bank service which automatically takes money out of the checking account at this point-of-sales.

A debit card is called as such because whenever transactions are paid using debit card, every time the card is swiped, the amount swiped will automatically be debited from the checking account. The debit card is limited to the cash that is available in the checking account. 
7 0
3 years ago
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