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
FromTheMoon [43]
3 years ago
12

A $200,000 loan amortized over 12 years at an interest rate of 10% per year requires payments of $21,215.85 to completely remove

the loan when interest is charged on the unrecovered balance of the principal. If interest is charged on the original principal instead of the unrecovered balance, what is the loan balance after 12 years provided the same $21,215.85 payments are made each year?
Business
1 answer:
lesya [120]3 years ago
6 0

Answer:

loan balance after 12 years = $185409.8

Explanation:

Loan principal = $200000

interest = 10% of principal

amount paid yearly  = $21215.85

For 1st year

principal for the first year = $200000

required interest to be paid = 10% of 200000 = $20000

amount paid = $21215.85

Loan Balance after first year = (principal for first year) - (amount paid - 10% of principal ) = $198,784.15

For 2nd year

principal for the 2nd year = Loan balance after first year = $198,784.15

loan balance after 2nd year = 198784.15 - ( 21215.85 - 10% of 198784.15)

= $197568.30

same applies for the different years until the 12th year

using this formula :

Loan Balance after Nth year = [ Loan balance after (n-1) year - ( amount paid - 10% of loan balance after (n-1) year ) ]

You might be interested in
Which of the following types of brands is most likely to be recognized by its logo?
tensa zangetsu [6.8K]
A store because its what we see in our everyday lifestyle
7 0
3 years ago
it is possible for a hospitality operations at a profit during any given month but simultaneosly have insufficient cash flow dur
belka [17]

Answer:

True

Explanation:

Cash flow is a measure of the available cash and cash equivalent for operation in a business year.It has to be positive to generate value for investors and also to remain in business.

Profit is defined as the excess of income over expenses.

We need to know that profit are calculated on accrual basis, which means that income are recorded when earned and expenses recorded when incurred. In a situation where most sales are on account , i.e no instant cash payment and most expenses are on cash basis, this could cause a deficit in the cash flow volume. The level of inventory held could also lead to a negative cash flow despite a profitable operation if it is too high.

6 0
3 years ago
In most high-tech industries, the fixed costs of developing a product are very _____, and the costs of producing one extra unit
topjm [15]

Answer:

Fixed costs are high, variable costs are low

Explanation:

The reason is that the fixed costs are high because these fixed costs are uncontrollable and their might not be an alternative which means we have to move with higher fixed costs. And this is because most of tasks in manufacturing are handled by the machines not humans. So the cost of maintenance, depreciation, etc are fixed costs which are uncontrollable.

Furthermore, the company has very small variable costs because the company enjoys economies of scales, fast paced manufacturing machines, etc. And this is controllable by investments in another more robust machinery.

7 0
3 years ago
What earns interest and allows unlimited ATM use
Vesna [10]
Interest-bearing checking account.
3 0
2 years ago
If real GDP is $200 billion, full employment GDP is $500 billion, and the marginal propensity to consume is 0.75, then Congress
Anuta_ua [19.1K]

Answer:

The answer is: decrease taxes by $100 billion.

Explanation:

If the real GD is $200 billion, which represents only 40% of full employment GDP, then the government should try to increase consumer spending either by decreasing taxes or increasing government spending, or a combination of both.

In this case, I chose the tax decrease since government have budget limitations and they can only decrease taxes by so much before hitting a deficit. Additionally, when you have a large tax reduction, usually government spending either stays the same or decreases.

If the government decreases taxes by $100 billion, the marginal propensity to consume shall result in a $75 billion increase in consumption. According to the Keynesian Multiplier theory, that $75 billion should generate additional production, creating a virtuous cycle that should increase the real GDP in a larger proportion.

3 0
2 years ago
Other questions:
  • Which of the following is an example of discrimination in the workplace? refusing to hire a person because another person is bet
    14·1 answer
  • There are two aspects of efficiency that the equilibrium of market for loanable funds exhibits. Select the TWO statements that c
    6·1 answer
  • Jack is buying the Padillas' home. He makes his offer and in his terms states, he wants all the window treatments, refrigerator,
    5·1 answer
  • What is generally the difference between blue-collar workers and white-collar workers?
    12·1 answer
  • A production department's output for the most recent month consisted of 8,900 units completed and transferred to the next stage
    9·1 answer
  • When Heavenly Cookies prices its sugar cookies at $1.00, they sell 75 cookies. They lowered the price to $0.50 and sold 200 cook
    6·1 answer
  • Lexi wants to find the perfect gift for her older sister's college graduation. She started looking for the gift last month and e
    9·1 answer
  • Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 3% of credit sales, (2)
    9·1 answer
  • Fun fact: The average person walks past a murderer 36 times in their life It's a fun fact because they didn't kill you.
    8·2 answers
  • What would happen to the body if the body temperature continue to decrease during the 10th hour instead of leveling off
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!