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3 years ago

What happens if you pay off an installment loan early

Business

1 answer:

Yuliya22 [10]3 years ago

4 0

When you pay off an installment loan early you will save money on interest.

The bank charges an interest rate on money that they loan out. When you pay the loan early you do not have to pay the interest on the money for the amount of time left on the loan.

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The Conity Corporation has an Electric Mixer Division and an Electric Lamp Division. Of a $ 15 comma 000 comma 000 bond issuanc

Alja [10]

Answer:

Amount allocated = $620,000

Explanation:

As per the data given in the question,

Bond issuance = $15,000,000

Electric mixer division used = $9,300,000

Electric lamp division used = $5,700,000

Interest cost on the bond = $1,000,000

Electric mixer division = Electric mixer division used ÷ Bond issuance

= $9,300,000 ÷ $15,000,000

=0.62

So, Allocated interest expense = Interest cost on the bond × Electric mixer division

= $1,000,000 × 0.62

= $620,000

3 0

4 years ago

Management at Gordon Electronics is considering adopting a bonus system to increase production. One suggestion is to pay a bonus

tekilochka [14]

Answer:

4,099 units or more

Explanation:

The cumulative distribution of a random variable X that follows a normal distribution is given by the area undear the "bell curve" and the values are given by the corresponding table for the standard normal distribution.

The standardized value of the variable X is called Z and is calculated with the formula:

$Z=\dfrac{X-\mu}{\sigma}$

Where:

$\mu=mean=4,000$

$\sigma=standard\text{ }deviation=60$

You read the Z-value for which the probability is greater than or equal to 5% in the table for the values of the area to the right of Z. Using probability = area under the curve ≥ 5%, the Z-value is 1.645 (interpolating between p = 0.0495, Z = 1.64 and p = 0.0505, Z = 1.65).

Substituting in the formula for Z:

1.645 = (X - 4,000) / 60

X= 60 × 1.645 + 4,000 = 4,098.7 ≈ 4,099

Hence, the bonus will be paid on 4,099 units or more.

3 0

3 years ago

In a rationing system, offering a landlord extra cash to guarantee the availability of an apartment is _____.

kicyunya [14]

Rationing system refers to the system of managed distribution of resources that are considered scarce. How this controls the distribution is by controlling the size of the ration. Therefore, if someone offers a landlord extra cash to make sure that the apartment would be guaranteed available is like performing business in the black market.

6 0

3 years ago

Read 2 more answers

The Tree Company provides the following standard cost data per unit of product: Variable overhead $ 8.00 Tree Co. anticipated th

olya-2409 [2.1K]

Answer:

Flexible budget variance= $10,000 unfavorable

Explanation:

Giving the following information:

Standard Variable overhead= $8.00 per unit

During the period, the company produced and sold 25,000 units, incurring $210,000 of variable overhead costs.

First, we need to calculate the standard variable overhead cost:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 8*25,000

Allocated MOH= $200,000

Now, the flexible budget variance:

Flexible budget variance= allocated overhead - actual overhead

Flexible budget variance= 200,000 - 210,000

Flexible budget variance= $10,000 unfavorable

5 0

3 years ago

Tom and Jerry's has 2.4 million shares of common stock outstanding, 2.4 million shares of preferred stock outstanding, and 14.00

3241004551 [841]

Answer:

Tom and Jerry's

The weight used for common stock in the computation of Tom and Jerry's WACC is:

= 45.22%

Explanation:

a) Data and Calculations:

Common Preferred Bonds

Stock Stock

Outstanding number 2.4 m 2.4 m 14,000

Market price per share $13.40 $10.40 $999.6

Total value $32.16 m $24.96 m $13,994,400

Total value of stock and bonds = $71,114,400

Weight of common stock = $32.16/$71.1144 * 100 = 45.22%

6 0

3 years ago

What happens if you pay off an installment loan early​

What happens if you pay off an installment loan early