Answer:Debit , market, stated.
Explanation: An actual payment of interest from a payables account is always entered as a debit in that account ledger. Then when calculating the effective interest : it is the the difference between the cash payment based on the market interest rate and interest expense based on the stated interest rate.
Answer:
16.67%
Explanation:
Calculation to determine what percentage of your salary must you save each year
First step is to calculate the Annual savings
Annual savings=$5 million*[(10%-3%)/(1+0.1)^40-(1+0.03)^40]
Annual savings=$5 million*0.07/(1.1^40-1.03^40)
Annual savings=$8333.88
Now let determine the percentage of the salary you must save each year
Proportion of savings=$8333.88/$50,000
Proportion of savings=0.1667*100
Proportion of savings=16.67%
Therefore the percentage of your salary that you must save each year is 16.67%
Cash flow=net income+non-cash expenses-increase in working capital.
Answer:
Explanation:
The interest expense would be
= Borrowing amount × annual rate of interest
= $80,000 × 8%
= $6,400
And, the principal would be
= Annual payment - interest expense
= $20,037 - $6,400
= $13,637
The principal balance on January 1, 2019 would be
= Borrowed amount - principal repaid amount
= $80,000 - $13,637
= $66,363
The interest expense would be
= Borrowing amount of 2019 × annual rate of interest
= $66,363 × 8%
= $5,309
And, the principal would be
= Annual payment - interest expense
= $20,037 - $5,309
= $14,728
Answer:
D.
irregular and missed loan payments
Explanation:
Missing and missed loan payments cause one to have a poor credit score. A credit score is a numerical representation of an individual or institution's debt worthiness. A high credit shows that the individual is a trusted borrower.
A high credit score comes about if one has a history is repaying his or her obligation promptly. The individual does not skip on their regular installments repayment. Lending institutions use borrowing history to predict how a borrower is likely to behave if credit is advanced to them. A high credit score shows that the borrower is unlikely to default to his repayment.