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Harrizon [31]
3 years ago
6

Shelly Sanders gets a loan for $3,000 and repays the loan in 12 monthly payments of $258 per month. Under the APR formula, what

is the amount of interest included in her first payment?
Business
2 answers:
posledela3 years ago
6 0

Answer:

$8

Explanation:

Annual percentage rate (APR) is the annual rate charged for borrowing a loan.APR does not take into account compounding of interest.

Workings

Loan amount: $3,000

Repayment period : 12 months

Monthly repayment : $258

Total repayment value : $258*12=$3096

Interest Value : $3000-$3096 = $96

APR : 96/3000*100 = 3.2%

1st month interest = 3.2% * 3000/12 = $8

alexandr402 [8]3 years ago
4 0

Answer: $8

Explanation:

Total loan is $3,000

Monthly instalments of $258

Tenor of 12 months

Total interest paid on loan = $258 x 12= $3,096

Interest = $3,096 - $3,000 = $96

Apr = $96/$3000= 0.032

= 0.032 x 100

= 3.2% annual rate

= 3000 x 3.2%

= 96/12 = $8

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Explanation:

The factors that are important in the determination of  the most appropriate channel/Medium for  communication are:

  • Urgency of the message(Importance of the message)
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When determining the most effective channel for the  message,one should initially consider the importance of the message.

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What environmental advantages would there be in having fewer transactions?
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Less Of an Imcome

Explanation:

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Seller Dayne was made aware by the trustee that the lender was wanting to proceed with foreclosure on his property. What type of
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Answer:

Promissory agreement and Deed of trust.

Explanation:

In this scenario, Seller Dayne was made aware by the trustee that the lender was wanting to proceed with foreclosure on his property. The type of financial agreement that Seller Dayne have with this lender is a Promissory agreement and Deed of trust.

A promissory agreement can be defined as an evidence of a debt and as such involves the use of a legal financial tool such as a promissory note as a written promise to declare that a party (borrower) would pay another (lender) at a specific period of time.

On the other hand, a deed of trust can be defined as a legal document used by a party (borrower) to pledge his or her property to another party (lender) as guarantee or collateral for the repayment of a loan. The deed of trust is typically made up of three (3) parties; the lender, borrower and a trustee.

Additionally, a foreclosure on a property refers to a legal procedure whereby the property being pledged by a borrower for a debt is sold to pay off the debt as a result of defaulting in payments or terms with respect to a loan.

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A business owner makes 50 items by hand in six hours. She could have earned $10 an hour working for someone else. If each item s
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RuthAnn is 28 years old and is retiring at the age of 65. When she retires, she estimates that she will need an annual income of
inessss [21]

Answer:

Yes

Explanation:

From her current age of 28 to her retirement age of 65, RuthAnn has (65 - 28 =) 37 more years to work.

If she saves 11% of her annual income of $36,278.13 into a 401(k), she will be setting aside (11% * 36,278.13 =) $3,990.59 into the 401(k) account annually.

At 7.1% compounding rate, in 37 years, RuthAnn would have set aside an amount estimated by the future value of an annuity formula.

FV = \frac{A(1+r)^{n} - 1}{r}

where FV is the future value, the amount that would have been set aside,

A = is the annual savings,

r = is the compounding rate, and

n = is the number of years.

Therefore, the total amount that would be saved up after 37 years =

FV = \frac{3,990.59(1+0.071)^{37} - 1}{0.071}

= (3,990.59 * 11.6535)/0.071

= $654,990.31.

By spending $32,523 annually from an account earning 7.1% compound interest rate for 30 years, the present value of the total amount needed by RuthAnn today that will be sufficient for her retirement spending can be estimated using the present value of an annuity formula.

PV = \frac{A(1 - (1+r)^{-n}}{r}

= PV = \frac{32,523(1 - (1.071)^{-30}}{0.071}

= (32523 * 0.8723)/0.071

= $399,574.83.

Since the amount saved up ($654,990.31) is more than the total amount required for RuthAnn's retirement ($399,574.83), RuthAnn has more than sufficient to meet her Retirement goal.

Specifically, the amount she has saved up can support a maximum annual spending which can be estimated from the present value of an annuity formula.

PV = \frac{A(1 - (1+r)^{-n}}{r}

where PV = the amount saved up, $654,990.31,

A = the annual spending which we are estimating,

r = the 7.1% compound interest rate,

n = the number of years to retirement.

654,990.31 = \frac{A(1 - (1.071)^{-30}}{0.071}

= 654,990.31 = (A * 0.8723)/0.071

= A = 654,990.31/0.8723 * 0.071

= A = 53,312.29

Thus, the amount saved up can support a maximum retirement spending of $53,312.29, which is higher than the $32,523 annual income needed by RuthAnn for her retirement.

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