Since you are paying 20% up front, you are paying $45000 up front (.20*225000) which means you are borrowing
225000-45000 = $180,000.
Hopefully, you've learned the formula for figuring out the payment for an amortization problem. It is as follows:
A=P [(1+R/n)nt *R/n] / [(1+R/n)nt -1] A is the amount for each payment, P is the principal, r is the rate, n is the number of payments per year and t is the time in years
So A = 180000 [(1+.065/12)12*30 * .065/12] / [(1+.065/12)360 -1]
A = 180000 [ .037872239/5.991797982]
A = 1137.72
So you will have 360 payments of 1137.72. So over the 30 years, you will pay 360 * 1137.72 = $409,579.20 and you only borrowed 180,000, which means when you subtract them, you'll have 229,579.20 in interest.
Hope this helped.
Of course not. Equal pay for equal work is a constant struggle for our society.
Answer:
Children
Explanation:
An asset is any resource with a commercial value, owned or controlled by a person, business, or country with the objecting of profiting from it in the future. Assets are useful resources in generating revenues, reducing costs, or improving operations. Physical include building, vehicles, equipment, human resource, plants, and machinery. Non-physical assets comprise of copyrights, patents, licenses, and goodwill.
Children cannot be given an economic value, nor are they reported in the business's financial books.
Answer:
$5,775
Explanation:
The computation of the interest payment is shown below:
= Note payable amount × rate of interest × number of months ÷ total number of months in a year
= $110,000 × 9% × 7 months ÷ 12 months
= $5,775
We simply multiplied with the note payable , interest rate, and the given number of months to find out the interest expense
And, the seven months is calculated from June 1, 2013 to December 31, 2013
Answer:
Data for Question
<u>Debt</u> <u>Book Equity</u> <u>Market Equity</u> <u>Operating Income</u> <u>Interest Expense</u>
Firm A
500 300 400 100 50
Firm B
80 35 40 8 7
1.
Market debt-to-equity ratio = Debt of Firm / Market Equity
Firm A = 500 /400 = 1.25
Firm B = 80 / 40 = 2
2.
Book debt-to-equity ratio = Debt of Firm / Book Equity
Firm A = 500 /300 = 1.67
Firm B = 80 / 35 = 2.29
3.
Interest coverage ratio = Operating Income / Interest Expense
Firm A = 100 /50 = 2
Firm B = 8 / 7 = 1.14
4.
Firm B will have more difficulty meeting its debt obligations because it has higher debt equity ratio and lower interest coverage ratio than Firm A.