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bulgar [2K]
3 years ago
7

Gertrude takes out a $5,500 subsidized Stafford loan, which must be paid back in ten years. Gertrude will graduate four years af

ter taking out the loan. If the loan has an interest rate of 6.8%, compounded monthly, and Gertrude makes monthly payments, how much interest will she pay by the time the loan is repaid
Business
1 answer:
Sergio [31]3 years ago
7 0

$2,095.30 interest will she pay by the time the loan is repaid

Solution:

The $5,500 guaranteed Stafford loan is taken from Gertrude.

The loan has a monthly compounding interest rate of 6.8 percent.

Price current= $5,500.

Present Value = $5,500

Time period = 10 years

So , N = 10 x 12 = 120 months.

Interest rate, R = 6.8/1200 = 0.005666667

PV = Pmt * [1 - (1+R)^(-N)]/(R)

5500 = Pmt * [1 - (1+0.005666667)^(-120)]/(0.005666667)

Pmt = $63.29418157

She got full refund. = 63.29418157 x 120 = $7,595.30

Interest paid = Total repayment - Loan Principal

                      = $7,595.30 - $5,500

                      = $2,095.30

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Northland Juices, a division of New York-based Apple & Eve, competes with Ocean Spray in the cranberry juice category. To be successful, Northland must create selective demand in order to be selected over competitors.

Explanation:

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3 years ago
All of the following are weaknesses of the payback period:_________ (You may select more than one answer. Single click the box w
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Answer:

c. it ignores all cash flows after the payback period

d. it ignores the time value of money.

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5 0
3 years ago
Lemony lemonade has​ 3,200 gallons of lemonade in wip​ inventory, with​ 76% of materials already added. The lemonade is​ 50% thr
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Based on the process that Lemony Lemonade uses to make lemonade, the equivalent units for conversion​ costs is 1,600 units.

<h3>What equivalent units are for conversion costs?</h3>

This can be found as:

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= 3,200 x 50%

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2 years ago
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3 years ago
Red Co. can estimate the amount of loss that will occur if a foreign government expropriates some of the company's assets in tha
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Answer:

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