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andreev551 [17]
3 years ago
12

An important application of interest involves amortized loans. Some common types of amortized loans are automobile loans, home m

ortgage loans, and business loans. Each loan payment consists of interest and repayment of principal. This breakdown is often developed in an amortization schedule. Interest is in the first period and over the life of the loan, while the principal repayment is in the first period and it thereafter.
You need $13,000 to purchase a used car. Your wealthy under is willing to lend you the money as an amortized loan. He would like you to make annual payments for 6 years, with the first payment to be made one year from today. He requires a 8% annual return.

a. What will be your annual loan payments? Round your answer to the nearest cent. Do not round intermediate calculators.
b. How much of your first payment will be applied to interest and to principal repayment?
Business
1 answer:
Luda [366]3 years ago
7 0

Answer:

a)Annual Repayment Installment:$2,812.1

b)

Amount to be applied to interest:$1040

Amount to be applied to principal:  $1772.10

Explanation:

The annual payment which will be used to offset the loan is computed as

follows:

Annual Installment  = Loan amount/annuity factor

Annuity factor = (1 - (1+r)^(-n)/r )

                      = 1- (1+0.08)^(-6)/0.08)

                     = 4.6228

Annual Repayment Installment

= 13,000/4.6228

= $2,812.1

b) Amount of first payment to be applied to Interest and principal :

Amount to be applied to interest:

Interest due in year 1 = 8% × $13,000

                                  = $1040

Amount to be applied to principal:

 =   $2,812.1-1040

=    $1772.10

Annual Repayment Installment:$2,812.1

Amount to be applied to interest:$1040

Amount to be applied to principal:  $1772.10

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Albert, a developmental psychologist, conducts research on children's emotional reactions to studying math in school. Albert is
NeTakaya

Answer:

Psycho-social

Explanation:

According to my research on studies conducted by various Psychologists, I can say that based on the information provided within the question Albert is most likely concerned with the children's Psycho-social development. Psycho-social is the study of an individuals thoughts and behaviors based on his/her social interactions.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

3 0
3 years ago
Adams Jackson invests $40,600 at 10% annual interest, leaving the money invested without withdrawing any of the interest for 10
Degger [83]

Explanation:

The computation is as follows

a. Total withdrawn amount

= Principal amount + total interest earned

where,

Principal amount = $40,600

And, the total interest earned is

= $40,600 × 10% × 10 years

= $40,600

So, the total withdrawn amount is

= $40,600 + $40,600

= $81,200

b. Now total withdrawn amount in case of compounded annually

= Principal amount × (1 + interest rate)^number of years

= $40,600 × (1 + 0.10)^10

= $40,600 × 2.5937424601

= $105,305.94

c. Now total withdrawn amount in case of compounded semi annually

= Principal amount × (1 + interest rate)^number of years

= $40,600 × (1 + 0.05)^20

= $40,600 × 2.6532977051

= $107,723.89

4 0
3 years ago
(Advanced analysis) The accompanying equations are for a mixed open economy. The letters Y, Ca, Ig, Xn, G, and T stand for GDP,
spayn [35]

Answer:

Equilibrium GDP = C+ I+ G+ X

Where:             Y = GDP

                        C = Ca = a+bYd

                         I  = Ig

                        G = G

                        X =  Xn

                     Yd  = Y-T

                        T =  0.2Y

                       Y  =  C+ I+ G+ X

                       Y  = a + bYd + I +G + X

                       Y  = a + b(Y-T) + I +G + X

                       Y  = a + bY - bT + I +G + X

                       Y  = a + by - b(0.2Y) + I +G + X

                       Y  = a + bY - 0.2Yb + I +G + X

                       Y  =  a + 0.8Yb + I +G + X

         Y - 0.8Yb  =  a + I +G + X

         Y(1 - 0.8b) =  a + I +G + X

                        Y = (a + I +G + X)/(1 - 0.8b)

That is the equilibrium GDP is Y = (a + I +G + X)/(1 - 0.8b)

Explanation:

Equilibrium GDP is also called equilibrium level of national income. This is the condition that must prevail for planned expenditure to exactly equals planned income or output in an economy. this is represented by the general equation of Y  =  C+ I+ G+ X-M but for the purpose of this question M which represent import was not introduced.

The consumption function of C = Ca = a+bYd is a Keynesian consumption function, it shows aggregate planned expenditure by household

Ig represents investment expenditure of the firm

Xn represents export while

G represents government expenditure on goods and services

T represents tax which varies with income level

3 0
3 years ago
Pappy Corporation received cash of $36,000 on September 1,2017 for one year's rent in advance and recorded the transaction with
fenix001 [56]

Answer:

debit Unearned Rent Revenue and credit Rent Revenue, $12,000.

Explanation:

Provided information we have,

Rent is received on 1 September 2017 for a period of 1 year on which it is accounted as Unearned Rent amounting $36,000.

Entry on that date would be

Cash A/c Dr.                  $36,000

To Unearned Rent                        $36,000

At the end of the year on 31 December 2017, we have period of current year lapsed = 1 September to 31 December = 4 months.

Thus rent income for the year = $36,000 \times \frac{4}{12} = $12,000

Therefore this rent of $12,000 will be recognized as rent income for the year 2017.

Entry will be

Unearned Rent A/c Dr.            $12,000

          To Rent Revenue                         $12,000

6 0
3 years ago
What<br> are three effects inflation have on an economy
Brrunno [24]
1. Hardships for poor people and fixed income salaried households 
<span>2. Business Profits tend to go up in times of inflation </span>
<span>3. Demand for pay hikes and wage increases</span>
7 0
3 years ago
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