1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
shtirl [24]
3 years ago
6

A company borrowed $40,000 cash from the bank and signed a 6-year note at 7% annual interest. The present value of an annuity fa

ctor for 6 years at 7% is 4.7665. The present value of a single sum factor for 6 years at 7% is 0.6663. The annual payments equal: Multiple Choice $26,652.00. $8,391.90. $40,000.00. $60,033.02. $190,660.00.
Business
1 answer:
Nat2105 [25]3 years ago
5 0

Answer: $8,391.90

Explanation:

So the company borrowed $40,000 from a bank.

They are to pay 7% interest on the note per year for 6 years.

We are to find the annual payments.

7% represents a constant payment schedule per year so we can use an Annuity formula.

Seeing as the Annuity factor has been calculated for us already we don't need to formula though.

The present value of an annuity factor for 6 years at 7% is 4.7665.

Calculating the present value of the annual payment can be done as follows,

= Amount / PVIFA (Present Value Interest Factor for an Annuity)

= 40,000/4.7665

= 8391.90181475

= $8,391.90

The annual payments equal $8,391.90.

You might be interested in
You are in talks to settle a potential lawsuit. The defendant has offered to make annual payments of $35,000, $39,000, $80,000,
storchak [24]

Answer:

The value of the settlement today =  $231,897.79  

Explanation:

The value of the settlement today is the sum of the present value (PV) of cash inflows discounted at the discount rate of 5.7 %.

Year                                                   PV

1              35,000 × 1.057^(-1)   = 33112.58

2                39,000× 1.057^(-2) = 34907.16

3.               80,000× 1.057^(-3)  = 67743.09

4                 120,000 × 1.057^(-4) =96134.94

The Pv of the total cash in flow =33,112.58  +  34,907.17  +  67,743.09  +  96,134.95  =  231,897.79  

The value of the settlement today =  $231,897.79  

7 0
3 years ago
Wilbert's Clothing Stores just paid a $1.20 annual dividend and increases its dividend by 2.5 percent annually. You would like t
astraxan [27]

Answer:

For 100 shares, the mount that should be paid = $1766

Explanation:

We have to calculate the price of the stock in the 4th year because the investor cannot afford the stock in another 3 years.

Price of the stock = Do + g / ke - g

Dividend in current year = $1.2

Dividend after 1 year = 1.2 +2.5% (1.2)= 1.23

Dividend after 2 years = 1.23 + 2.5%(1.23) = 1.26075

Dividend after 3 years = 1.26075 + 2.5%(1.26) = 1.29227

Price in 4th year = 1.29227 + 2.5% / (0.10 - 0.025)

                            =1.29227 + 2.5%(1.29227)/0.075

                            = 17.66

Therefore, for 100 shares, the mount that should be paid = 17.66 * 100 = $1766

5 0
3 years ago
Read 2 more answers
How much should you save each year for maintaining your home
slega [8]

Answer:

According to the one percent rule, you should set aside at least one percent of your home's value every year for home maintenance. For a $360,000 house, this works out to $3,600 per year, or $300 per month.

6 0
2 years ago
Read 2 more answers
Alex invested $10,500 in an account that pays 6 percent simple interest. how much money will he have at the end of four years?'
Marizza181 [45]
The amount generated from the investment with simple interest is calculated through the equation,

           F = P x (1 + in)

where F is the future amount, P is the present worth, i is the decimal equivalent of the given interest and n is the number of interest period.

From this item it can be identified that,
   P = $10,500
   i = 0.06
   n = 4

Substituting the known values,

    F = ($10,500) x (1 + (0.06)(4)) 
 <em>   F = $13020</em>

Therefore, after four years, the amount of money that Alex will have is $13,020. 
4 0
3 years ago
Autocratic leadership is likely to be effective when: subordinates are highly trained professionals. the organization faces an e
andrew-mc [135]

When the organization faces an emergency situation.

Autocratic leadership (or authoritarian leadership) is characterized by a single person taking control of decision making. In an emergency, having a clear leader is sometimes the best option.

5 0
3 years ago
Other questions:
  • Internal control is a process designed to ensure
    15·1 answer
  • Typically, a steering team or leadership team is responsible for all of the following project related roles EXCEPT:
    12·1 answer
  • (Blank) monetary policy involves decreasing the money supply.
    9·2 answers
  • An example of an ongoing cost is _____.
    7·2 answers
  • 18. If you have $1,000 to deposit in a savings account for 1 year, which of the following should you choose: 8.75% compounded co
    11·2 answers
  • Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of 3 years
    15·1 answer
  • A cost-benefit analysis is a way
    14·2 answers
  • perline, inc., has balance sheet equity of $6.2 million.At the same time, the income statement shows net income of $948600. The
    11·1 answer
  • A client reports foot pain and is diagnosed with arterial insufficiency. The nurse provides teaching about what the client can d
    12·1 answer
  • Write two or three career goals for yourself. Remember to use the guidelines for writing goals. Also, state how you will review
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!