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ololo11 [35]
3 years ago
15

g Jack and Jill borrow $21,000 at 7.2% amortized over 6 years to drill a well and renovate their kitchen and bathrooms. Assuming

that the monthly principal and interest payments are made as agreed, what is the loan balance at the end of 3 years
Business
1 answer:
leonid [27]3 years ago
6 0

Answer:

The loan balance at the end of 3 years is $11,626.26.

Explanation:

Prepare an Amortization Table to determine the loan balance at end of year 3

First, enter the following data in Financial Calculator to find the PMT, payment per month:

Pv = $21,000

r = 7.2%

n = 6 × 12 = 72

P/yr = 12

Fv = $0

PMT = ? - $360.0493

Thus the payment PMT per month is $360.0493.

Year 3

The following are balances extracted from Amortization schedule for Year 3.

Note : 36 months would have expired at end of year 3.

Principle = $ 3,619.94

Interest   = $1,060.70

Balance  = $11,626.26

Conclusion :

The loan balance at the end of 3 years is $11,626.26

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Process costing would be most likely used by a A. salsa company. B. soft drink manufacturer. C. cereal company. D. all of the ab
Lana71 [14]

Answer:

All of the above would use process costing.

Explanation:

Process costing can be defined as a method of assigning manufacturing costs whereby the cost of each unit produced is assumed to be the same cost for every unit.

Process costing is most commonly applied when goods are produced in large numbers and when the costs linked to individual units cannot be easily differentiated from each other.

Under process costing, costs rise over a fixed period of time, and are then assigned to all the units produced throughout that period.

4 0
3 years ago
Petrus Company has a unique opportunity to invest in a two-year project in Australia. The project is expected to generate 1,000,
aliya0001 [1]

Answer:

$(94,179)

Explanation:

Particulars        Year 0               Year 1            Year 2

Cash flows     ($1,500,000)  A$1,000,000   A$2,000,000

DCF 14%              1                    0.8772         0.7695

Present Values 1500,000      A$877,200      A$ 1,538,935

Conversion           1                    0.55                      0.60

P V in US$        (1,500,000)     482,460              923,361

Therefore Net Present Value = 482,460 +923,361 - 1,500,000 = $(94,179)

8 0
3 years ago
The cash remaining after a firm has met its operating expenses, payments to creditors, and taxes is called
RoseWind [281]

Answer:

residual cash flow

Explanation:

According to my research on financial terminology, I can say that based on the information provided within the question the remaining cash is called residual cash flow. Like described in the question this term is formally defined as the income that an organization has after all debts and expenses have been officially paid.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0
3 years ago
Tim and Mike work for a broker who tells them to call their clients and inform them whenever their investments gain or lose 3% o
natulia [17]
<span>Obviously, the broker is subtly encouraging their clients to buy more stocks. Particularly, when they call with news of stocks that rose more than 10 percents, this will probably motivate people to think the stock is doing well and they want to "get in on the action" while they still can. Even if their calls when a stock goes below 3 percent might encourage some people to sell, the increase of three percents (combined with the 10 percent calls) would definitely be influence to buy.</span>
4 0
3 years ago
Pacor Industries recently paid its annual dividend of $2. Dividends have consistently grown at a rate of 2.2%. Analysts estimate
yulyashka [42]

Answer:

The intrinsic value of the stock is $21.52

Explanation:

To calculate the intrinsic value of the stock, we will use the constant growth model of the dividend discount model (DDM). The DDM values the stock based on the present value of the expected future dividends from the stock. The formula for price today under the constant growth model of DDM is,

P0 = D0 * (1+g) / r - g

Where,

  • D0 * (1+g) is D1 or the next expected dividend
  • r is the required rate of return
  • g is the growth rate in dividends

First of all, we need to calculate the r or required rate of return using the CAPM equation,

r = rRF + Beta * (rM - rRF)

Where,

  • rRF is the risk free rate
  • rM is the return on market

r = 0.024 + 1.12 * (0.107 - 0.024)

r = 0.11696 or 11.696%

P0 = 2 * (1+0.022) / (0.11696 - 0.022)

P0 = $21.52

5 0
3 years ago
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