Answer:
The actual monthly payment is $206.08, which is slightly higher than the value given in the question, therefore, the given statement is not true.
Step by Step Explanation:
We have been given the loan amount as $12,000, term of loan as 6 years and annual interest rate as 7.25%.
Let us first find the monthly payment for this data, and then we can compare it with the given data to answer the given question.
We know that EMI formula is given as 
Upon substituting the given values.
Therefore, the monthly payment is $206.08.
Answer:
The correct answer is $1,000.
Explanation:
According to the scenario, the computation of the given data are as follows:
Receives a loan = $100,000
Withdraws = $50,000
Interest rate = 2%
So, we can calculate the implicit cost by using following formula:
Implicit cost = Withdrawal amount × Tax rate
By putting the value, we get
Implicit cost = $50,000 × 2%
= $1,000
Answer:
$53,355.7047
Explanation:
The computation of the estimated cost of the replacement cost is shown below:
Estimated cost = (old cost i.e purchased cost of an equipment ÷ Cost index of that year i.e 2006) × estimated cost index for 2017
= ($30,000 ÷ 149) × 265
= $53,355.7047
We simply applied the above formula so that the estimated cost could come
Answer:
Extract as low as possible at present and as high as much possible in the future.
Explanation:
The company must sell fewer natural gas units because the sales price is at present and this will constitute to fewer income coming by the sale of natural gas, the company must only earn from natural gas as much as required to finance its needs at present. So to earn a higher revenue proportion in future due to increase in the selling price of the product, the company must extract as much as possible in future to earn more.
Answer:
The inventory has been reportedly increased and it should be checked.
Inventory management should be further examined.
Explanation:
Current Ratio = Current Assets/ Current liabilities
An increase in the current ratio means that there is an increase in the current assets or decrease in the current liabilities.
Acid test Ratio= Current Assets - Inventory / Current liabilities
If the acid test ratio is decreased it means that there is an increase in current liabilities or the current assets have decreased.
If we carefully look at the two formulas we find that inventory has increased and deduction of inventory from current assets reduces the amount of current assets and increases the current liabilities giving a bigger acid test ratio.
The inventory has been reportedly increased and it should be checked.
Inventory management should be further examined.
