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
Ratling [72]
3 years ago
15

Sam is paying off his eight-year, $15,360 loan in semiannual installments. The loan has an interest rate of 9.58%, compounded se

miannually, and a service charge of $1,294.64. Once the loan has been fully paid off, what percentage of the total finance charge will the service charge be
Business
2 answers:
kenny6666 [7]3 years ago
8 0

Answer:

Percentage of finance charge as service charge= 15.6%

Explanation:

Monthly installment = Loan amount /annuity factor

Annuity factor =  (1- (1+r)^(-n))/r

r - semi-annul interest rate = 9.58%/2

n= number of period : 2×8 = 16

Annuity factor =( 1- (1.0479))^(-16)/0.0479

                      =11.0016

Monthly installment = 15,360 /11.00

=$1396.160

TotaL amount paid = 1396.160459× 16 =22,338.56

Interest charges = 22,338.56 -  15,360

                           = $6978.56

Percentage of total  finance charge as service charge=

=1294.64/(1294.64+6978.567348)× 100

= 15.6%

                   

serious [3.7K]3 years ago
8 0

Answer:

15.65%

Explanation:

we must determine the payment using the annuity formula:

present value = payment x {1 - (1 + r)⁻ⁿ / r]

  • present value = 15,360
  • r = 9.58% / 2 = 4.79%
  • n = 8 x 2 = 16

15,360 = payment x {1 - (1 + 0.0479)⁻¹⁶ / 0.0479]

payment = 15,360 / {1 - 1.0479⁻¹⁶ / 0.0479] = 1,396.16

total payments = 1,396.16 x 16 = $22,338.56

interest charge = $22,338.56 - $15,360 = $6,978.56

total finance charge = $6,978.56 + $1,294.64 = $8,273.20

$1,294.64 / $8,273.20 = 0.1565 or 15.65%

You might be interested in
Quick-as-Lightning, a delivery service, purchased a new delivery truck for $40,000 on January 1, 2019. The truck is expected to
stich3 [128]

1. $3,700

2. $8,000 and $6,400

3. $5,120

The computation of the depreciation expense for the years are shown below:

1) Straight-line method:

= (Original cost - residual value) ÷ (useful life)

= ($40,000 - $3,000) ÷ (10 years)

= ($37,000) ÷ (10 years)  

= $3,700

In this method, the depreciation is same for all the remaining useful life

So for year 2019 and 2020 the same depreciation expense i.e $3,700 is charged separately for each year

(2) Double-declining balance method:

First we have to find the depreciation rate which is given below:

= One ÷ useful life

= 1 ÷ 10

= 10%

Now the rate is double So, 20%

In year 2019, the original cost is 40,000, so the depreciation is $8,000 after applying the 20% depreciation rate

And, in year 2020, the depreciation is

= ($40,000 - $8,000) × 20%

= $6,400

3) For 2021, it would be

= ($40,000 - $8,000 - $6,400) × 20%

= $5,120

Basically we applied the above formulas

To know more about Depriciation follow the link:

brainly.com/question/1203926

#SPJ4

8 0
1 year ago
John is researching the job of a quality control inspector. He thinks it would be fun to monitor the production process and test
klio [65]
<span>Quality Control Inspectors need to keep accurate records of products checked, sometimes carrying out a statistical analysis. They often produce written reports for the production team and have regular meetings to discuss how quality standards can be maintained, or highlight problem areas that require review.</span>
6 0
3 years ago
When a union bargains successfully with employers resulting in increased total compensation, both the quantity of labor supplied
34kurt

ANSWER – FALSE

 

When a union bargains successfully with employers, resulting in increment in total compensation, both the quantity of labor supplied and the quantity of labor demanded doesn’t increase, rather, the quantity of labor supplied increases and the quantity of labor demanded decreases.

8 0
3 years ago
United Machining's margin was 2% and turnover was 3.0 on sales of $60 million for the year. On the basis on this information____
Hunter-Best [27]

Answer:

B, net income for the year was $1,200,000, average assets were $20 million, ROI was 6%

Explanation:

net income is calculated by multiplying the percentage margin by the sales. We have,

(2 ÷ 100) × $60,000,000

= 0.02 × $60,000,000

= $1,200,000

To calculate the average assets, sales is divided by the turnover.

we have, ($60,000,000 ÷ 3.0)

= $20,000,000.

To calculate the ROI, margin and turnover are multiplied.

we have,

(2% × 3.0) = 6%

Cheers.

3 0
3 years ago
Xavier and alex plan on retiring 27 years from today. at that time, they plan to have saved the same amount. javier is depositin
hammer [34]

The amount by which Alex's deposit amount vary from Javier's if Alex also makes a deposit today, but earns an annual interest rate of 6.2 percent is $3381.39.

<h3>How to calculate the value?</h3>

We use the formula:

A=P(1+r/100)^n

where

  • A=future value
  • P=present value
  • r=rate of interest
  • n=time period.

Hence future value Javier will be:

=$15000*(1.052)^27

=$58,954.40

For Alex:

58,954.40=P*(1.062)^27

P=58,954.40/(1.062)^27

=$11618.61

Hence difference will be:

=15000 - 11618.61

= $3381.39

Learn more about interest on:

brainly.com/question/2294792

#SPJ1

3 0
1 year ago
Other questions:
  • Miller is the owner of a restaurant that has several franchises. One of the franchisees owes Miller a sum of $18,000 for the goo
    9·1 answer
  • The company has grown rapidly, and the expanded workforce includes people in many locations and of diverse backgrounds, leading
    6·1 answer
  • Karen’s monthly cell phone bill is $75. What type of budget item would her cell phone bill be?
    11·2 answers
  • Cindy's Ceramics engaged in a like-kind exchange that resulted in a $3,000 gain. In addition to the like-kind property received
    15·1 answer
  • Hastings Entertainment has a beta of 0.65. If the market return is expected to be 11 percent and the risk-free rate is 4 percent
    5·1 answer
  • Identifying cash flows (LO 1) Mighty Vita produces a wide range of herbal supplements sold nationwide through independent distri
    13·1 answer
  • When does information become a liability for an organization?
    10·1 answer
  • Ace Credit Card Company agrees to transfer cash to Seller Company deposit of that company's credit card sales sales. If Seller C
    9·1 answer
  • If the Fed raises the interest rate, this will ________ inflation and ________ real GDP in the short run.
    7·1 answer
  • A utility-maximizing consumer buys so as to make ________ for all pairs of goods.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!