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3 years ago

A mortgage requires you to pay $70,000 at the end of each of the next eight years. The interest rate is 8%.

Business

1 answer:

bazaltina [42]3 years ago

8 0

Answer:

PV $402,264.7261

balance of the mortage

1-y from now $364,445.9041

2-y from now $323,601.5765

3-y from now $279,489.7026

4-y from now $231,848.8788

5-y from now $180,396.7891

6-y from now $124,828.5322

7-y from now $64,814.8148

Explanation:

We sovle for the PV of the annuity of 70,00 during 8 years discounted at 8%

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 70,000.00

time 8

rate 0.08

$70000 \times \frac{1-(1+0.08)^{-8} }{0.08} = PV\\$

PV $402,264.7261

To know the value of the outstanding dbet we can repeat this formula changing the values for time

t = 7 $364,445.9041

t = 6 $323,601.5765

t = 5 $279,489.7026

t = 4 $231,848.8788

t = 3 $180,396.7891

t = 2 $124,828.5322

t = 1 $64,814.8148

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A Lexus automobile priced in Japan for export at 3000000 at a time when the exchange rate is 100 now costs $30000 in the United

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Answer:

what will be the new price in the United States

c $33750

Explanation:

Initial Price:

$3,000,000 PRICE

100 USD Exchange

$30,000 PRICE USD

Updated Price:

$3,000,000 PRICE

80 USD Exchange

$37,500 PRICE USD

As the pass through indicates that the exchange rate impact only a 50%, then the final price of the car it's defined as:

$7,500 Exchange Impact

0.50 Pass through

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Initial Price : $30,000

Final Exchange Impact: $3,750

Final Price: $30,000 + $3,750 = $33,750

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3 years ago

The cellular phone division of Stegall Company had budgeted sales of $950,000 and actual sales of $900,000. Budgeted expenses we

WINSTONCH [101]

Answer:

Since the actual expenses is lower than the budgeted expenses, and the variance is positive, a report prepared for the manager of this profit center would show a favorable variance.

Explanation:

Revenue variance is the difference between the actual sales volume and the budgeted sales volume.

Revenue variance = Actual sales - Budgeted sales

Budgeted sales = $950000

Actual sales = $900000

Revenue variance = $900000 - $950000

= - $50000

Since the actual sales is lower than the budgeted sales, and the variance is negative, so the variance is unfavorable.

Cost variance is the difference between the budgeted expenses and the actual expenses.

Cost variance = Budgeted expenses - Actual expenses

Budgeted expenses = $600000

Actual expenses = $550000

Cost variance = $600000 - $550000

= $50000

Since the actual expenses is lower than the budgeted expenses, and the variance is positive, so the variance is favorable.

Therefore, Since the actual expenses is lower than the budgeted expenses, and the variance is positive, a report prepared for the manager of this profit center would show a favorable variance.

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3 years ago

Drogo, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 14 years to maturity that is qu

just olya [345]

Answer:

a. 7.30%

b. 4.745%

Explanation:

For computing the pretax cost of debt we have to applied the RATE formula i.e to be shown in the attachment below:

Given that,

Present value = $1,000 × 106% = $1,060

Assuming figure - Future value or Face value = $1,000

PMT = 1,000 × 8% ÷ 2 = $40

NPER = 14 years × 2 = 28 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after applying the above formula

a. The pretax cost of debt is

= 3.65% × 2

= 7.30%

b. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 7.30 % × ( 1 - 0.35)

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3 years ago

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The total retained earnings on 31st December 2016 is $197,100. The journal entry are attached below.

<h3>What is Retained Earnings?</h3>

Retained earning is basically the profits of the company which is kept aside to meet the future requirement of the company. It the amount which is left over after deducting all cost such as direct cost, indirect cost, income taxes and dividend.

The retained earning is used in the future projects or for buying the equipment for the company.

Learn more about retained earnings here:

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