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Artyom0805 [142]
2 years ago
14

You have just received an offer in the mail from Friendly Loans. The company is offering to loan you $4,500 with low monthly pay

ments of $80 per month. If the interest rate on the loan is an APR of 14.3 percent compounded monthly, how long will it take for you to pay off the loan
Business
1 answer:
Scorpion4ik [409]2 years ago
6 0

Answer:

It takes 8 years 4 months to pay off the loan.

Explanation:

Use Time Value of Money Techniques to find N (the period it takes to pay off the Principle Amount)

Using a financial calculator, enter the data as follows

PV = $4,500

PMT = - $80 × 12 = - $960

P/YR = 1

R = 14.3 %

FV = $0

Therefore, N = 8.3020

Conclusion ;

It takes 8 years 4 months to pay off the loan.

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Which of the following falls outside of the classification of business expenditures that fall into the category of variable cost
yuradex [85]

The option that falls outside of the classification of business expenditures that fall into the category of variable costs is option C. costs of research and development. Read below about costs of research and development.

<h3>What is a costs of research and development?</h3>

These are costs taken to develop new products or processes that may or may not result in commercially viable items. The general rule is that research and development costs are to be expensed immediately when the costs are incurred.

Therefore, the correct answer is as given above.

learn more about costs of research and development: brainly.com/question/18685415

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4 0
1 year ago
Whenever the production of a good creates negative externalities, an unregulated market will result in:
sp2606 [1]

Answer:

Option (C) is correct.

Explanation:

In an unregulated market, negative externality results in a higher social marginal cost than the firm marginal cost because this market is not properly regulated by the government officials. Hence, these firms are not taking into account the effect of negative externalities in their cost.

We know that the consumer's decision is more offenly based on the point where the marginal cost is equal to the marginal benefit because they are not taking the impact of negative externalities.

If proper action is not taken by the government, negative externality will result in a market inefficiencies.

6 0
3 years ago
Floyd Industries stock has a beta of 1.25. The company just paid a dividend of $.40, and the dividends are expected to grow at 5
stiks02 [169]

Answer:

5.62%

13.75%

Explanation:

According to the DDM method,

the value of a stock = [dividend x ( 1 + growth rate)] / [cost of equity - growth rate]

67 = 0.4(1.05) / r - 0.05

multiply both sides of the equation by r -0.05

67(r - 0.05) = 0.42

divide both sides of the equation by 67

r - 0.05 = 0.006269

r = 0.0563

= 5.63%

b. the cost of equity using the capm method =

risk free rate of return + beta x ( expected return - risk free return)

5% + 1.25 x (12 - 5) = 13.75%

3 0
2 years ago
According to the law of​ demand, quantity demanded decreases as​ ________, ceteris paribus.
vekshin1
D is the answer :3333
4 0
3 years ago
Ambiguity can arise as to whether receivables have been sold or instead are being used as collateral for a loan whenever certain
victus00 [196]

Answer:

is whether the transferor surrenders control over the receivables

Explanation:

In Sales of Receivables and Collateralized Borrowing,.companies do not want to wait for payments to arrive as they simply quickens cash collection with help of bank or financing company and also factoring and collateralized borrowings are various means to speed up cash collections. In Collateralized borrowing, receivables are simply collateral. Company gets cash from bank and is saddle with the responsibility for repaying loan.

Issues regarding collateralized borrowing are the sales of receivables had the purchaser is called a factor, borrowing using receivables as collateral and accounts receivable is not wipe off from seller's books.

6 0
2 years ago
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