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ki77a [65]
3 years ago
13

"A borrower obtained a $10,000 term loan with 6 1/2% interest paid yearly. A $1,000 principal reduction was to be paid with each

yearly installment. What would be the amount of the principal and interest payment for the second year?
Business
1 answer:
aleksley [76]3 years ago
6 0

Answer:

$1585

Explanation:

Interest for the first year = 6.5% of principal due at the beginning of the year

= 6.5% of $10,000

= $ 650

Principal repayment at the end of the year = $1000

Principal due at the beginning of the second year = $10,000 - $1000= $9000

Interest payable at the end of the second year = 6.5% of principal outstanding at the beginning of the second year = 6.5% of 9000

                                                                            = $ 585

Principal repayment at the end of the second year = $1000

Hence total payment at the end of the second year = $1000 + $585= $1585

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You own shares of Somner​ Resources' preferred​ stock, which currently sells for per share and pays annual dividends of ​$ per s
dimulka [17.4K]

Answer:

You should buy more shares

Explanation:

The above-mentioned question is missing few components. I have added them to explain on how the question would be solved if all the variables were provided. Please note the additions in bold text below. The answer of which is given afterwards.

You own 300 shares of Somner​ Resources' preferred​ stock, which currently sells for $39 per share and pays annual dividends of ​$5.50 per share. If the​ market's required yield on similar shares 12% is ​percent, should you sell your shares or buy​ more?

Solution as mentioned below:

First of all we need to calculate value of the preferred stock by dividing the annual dividend per share from the market required rate.

Value of preferred stock = 5.50 / 12%

Value of preferred stock = $45.83

Now given the fact that the current price at which the stocks are sold is $39 which is less than the price at which they are actually valued which is $45.83. You should buy more of the shares as they are currently undervalued.

8 0
3 years ago
A 20-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%. Find the bond equivalent
iren2701 [21]

Answer:

The bond equivalent yield to maturity = 8.52%

The effective annual yield to maturity of the bond = 8.71%

Explanation:

Here, we start with calculating the yield to maturity YTM using the financial calculator

To find the YTM, we need to put the following values in the financial calculator:

N = 20*2 = 40;

PV = -950;

PMT = [8%/2]*1000 = 40;

FV = 1000;

Press CPT, then I/Y, which gives us 4.26

So, Periodic Rate = 4.26%

Bond equivalent yield = Periodic Rate * No. of compounding periods in a year

= 4.26% * 2 = 8.52%

effective annual yield rate = [1 + Periodic Rate]^(No. of compounding periods in a year) - 1

= [1 + 0.0426]^2 - 1 = 1.0871 - 1 = 0.0871, or 8.71%

3 0
3 years ago
Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year. Below
Paha777 [63]

Answer:

d.$1,685

Explanation:

Though many jobs were completed, but only Job 356 and 357 were sold.

Cost of Goods Sold = cost of job 356 +cost of job 357

= $450 + $1,235

= $1,685

5 0
3 years ago
Imagine that a designer writes content for their online portfolio. To come across as knowledgeable about UX design, they include
denis23 [38]

To improve their written content, the designer can do the following:

  1. Understand the audience he targets.
  2. Incorporate storytelling to capture the interests of his audience.
  3. Make the presentation simple.
  4. Incorporation of text in the User Interface.
  5. Make a good copy to sell your skill.

<h3>Who is a designer?</h3>

A designer is an individual that uses computer-aided software and devices to plan and draw the soft/hard copies of a material.

A User Interface designer designs the screens that users go through while surfing a website.

To improve their written content and improve their portfolio, they can use the numbered steps above.

Learn more about UI Designers here:

brainly.com/question/898119

5 0
2 years ago
What is the maximum days supply of isotretinoin that may be dispensed per prescription?.
soldi70 [24.7K]

30-days is the maximum days supply of isotretinoin that may be dispensed per prescription.

Prescription is a health practitioner's written course for the medicine that a person wishes and the way it's miles for use, or the medicine itself: The doctor gave me prescriptions for antibiotics and cough syrup.5 days ago.

1- simple prescription: those written for a unmarried component or prefabricated product and no longer requiring compounding or admixture by way of the pharmacist. 2- Compound or complicated prescription: the ones written for greater than a unmarried factor and requiring compounding.

Learn more about prescription here:brainly.com/question/1392739

#SPJ4

6 0
1 year ago
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