Answer: $1,626
Explanation:
A Mortgage payment is a type of annuity so the Present Value of an Annuity formula can be used to calculate this.
The Period is 12 months so adjustments need to be made to the interest rate and the period.
Period.
= 25 years * 12 months
= 300
Interest Rate
= 5.89/12
= 0.4908%
Present Value of the Annuity is the mortgage amount of $255,000
Present Value of Annuity is,
P = PMT ( 1 - ( 1 + r)^-n) / r
Where,
P = Present Value
PMT = payment per period
r = Interest rate
n= no. of periods
255,000 = PMT ( 1 - (1+0.4908%)^-³⁰⁰) / 0.4908%
255,000 = 156.8456 PMT
PMT = 255,000/156.8456
= $1,625.80
= <u>$1,626</u>
Answer:
B. a decrease of $30,000
Explanation:
The computation of company’s overall profit is shown below:-
To continue = Contribution margin - Fixed cost
= $65,000 - $70,000
Loss = $5,000
To Discontinue = Unavoidable fixed cost ÷ 2
= $70,000 ÷ 2
= $35,000
So, Net Loss = To continue (Loss) - To Discontinue
= $5,000 - $35,000
= $30,000
Therefore there is a decrease of $30,000
Answer:
Final Value= $483,603.80
Explanation:
Giving the following information:
You plan to deposit $4,700 at the end of each of the next 25 years into an account paying 10.3 percent interest
We need to calculate the final value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit= 4,700
n= 25
i= 0.103
FV= {4,700*[(1.103^25)-1]} / 0.103= $483,603.80
Answer:
$1,200
Explanation:
Since the promissory note is accepted by Dallas Corporation for the period of only four months in the Year 1 i.e. from the September 1, Year 1 to December 31, Year 1, therefore the interest revenue will be accrued for the period of four months which shall be calculated using the below mentioned equation:
Interest revenue=Promissory note amount*interest rate*4/12
=$30,000*12%*4/12
=$1,200
Answer:
The correct words, that fills the gaps are: driving force, competitive
Explanation:
Even when it is important to judge what stage of growth an industry is in, it is better to identify the factors that cause fundamental adjustments in the industry and competition. Industry conditions and competition change because forces are in motion that create incentives or pressures for change. The dominant forces are known as driving forces, because they have the greatest influence on the kind of changes that will take place in the structures and environment of the industry.
