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Liono4ka [1.6K]
3 years ago
9

New Body, a gym, bought new exercise equipment on credit. The purchase price was $10,438.88. They secure the loan with a financi

ng company that charges 6.25% per year compounded quarterly for 6 years. How much are their quarterly payments?
Present Value with compound interest
Future V alue of an Annuity
Present V alue of an Annuity
Amortization
Sinking Fund

a. $578.41
b. $524.94
c. $503.78
d. $612.94
e. $486.78
Business
1 answer:
LiRa [457]3 years ago
4 0

Answer:

b. $524.94

Explanation:

We need to solve for the PTM of a 6 year annuity with quarterly payment discount for 6.25% compounding quarterly as well:

PV \div \frac{1-(1+r)^{-time} }{rate} = PTM\\

PV $10,438.8800

time 24 (6 years x 4 quarter per year)

rate 0.015625 8 ( 0.0625 / 4 )

The payment every quarter will be for:

10438.88 \div \frac{1-(1+0.015625)^{-24} }{0.015625} = PTM\\

PTM  $ 524.942

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A firm is planning on increasing its annual dividend by 3.50% a year in perpetuity. The company just paid its annual dividend in
uysha [10]

Answer:

c.) $1.73

Explanation:

Price = \frac{D0(1+g)}{(r-g)}

D0= Last dividend paid

r= rate of return

g = growth rate

Price = \frac{0.20(1.035)}{(0.1550-0.035)}

Price = 0.207 / 0.12

Price = 1.725

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5 0
3 years ago
(1 point)
9966 [12]

Answer:

The correct answer is Cash to Close number

Explanation:

Closing disclosure is the disclosure which provided by the lender to the person 3 days before closing. It states the final costs as well as the terms of the mortgage.

And the amount of money which is required to close so that loan can be processed is referred to as the Cash to close number. In other words, it is the amount needed to bring the table for closing the deal involving the closing cost and down payment.

4 0
3 years ago
At an output level of 84,000 units, you calculate that the degree of operating leverage is 1.80. Suppose fixed costs are $180,00
Irina-Kira [14]

Answer:

The operating cash flow is $196,071 and the new degree of operating leverage is 1.918

Explanation:

a. The computation of operating cash flow is shown below:

By using the information, first we have to calculate the contribution amount.

We know that the operating leverage equals to

Operating leverage = Contribution ÷ EBIT

And, Contribution  = Fixed cost + EBIT

So,

1.80 =  Fixed cost + EBIT ÷ EBIT

1.80 EBIT - EBIT = Fixed cost

0.80 EBIT = $180,000

So, EBIT = $180,000 ÷ 0.80 = $225,000

And, the contribution = $180,000 + $225,000 = $405,000

Contribution is calculated for 84,000 units but we have to compute for 78,000 units

So, contribution for 78,000 units will be equals to

= $405,000 × 78,000 ÷ 84,000

= $376,071.43

So, the operating cash flow would be

= $376,071.43 - $180,000

= $196,071.43

b. The new degree of operating leverage equals to

=  $376,071.43 ÷ $196,071.43

= 1.918

Hence, the operating cash flow is $196,071 and the new degree of operating leverage is 1.918

5 0
3 years ago
Calculate the net pay using the following information:
ZanzabumX [31]

Answer:

$ 491.1

Explanation:

Net pay is the take home pay salary. it is calculated by subtracting  all deduction from the gross pay

Total deductions =$55.90 +$85 + $20.44 + $0, +$47.59

Total deductions = 208.84

Net pay = Total sales - taxes

=$700 - $208.84

=$ 491.36

4 0
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Marissa is buying vegetables. She can choose between carrots​, lettuce​, and green beans. She​ doesn't like green beans​, and af
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Chose carrots she might like enough more than the other food that was given
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