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3 years ago

Prescott Bank offers you a $23,000, 6-year term loan at 8 percent annual interest. What will your annual loan payment be?

Business

1 answer:

scoray [572]3 years ago

7 0

Answer:

Annual payment= $3,901.78

Explanation:

<em>Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest. </em>

The monthly instalment is computed as follows:

Monthly installment= Loan amount/annuity factor

Loan amount; = 23,000

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

r -monthly rate of interest, n- number of months

r- 8%/12 = % = 0.6667 , n = 8 × 12 = 96

Annuity factor = ( 1- (1+0.6667)^(-96))/0.6667

= 70.7370

Monthly installment = Loan amount /annuity factor

= 23,000/70.7370 = 325.15

Annual payment = 12× 325.15 = $3901.78

Annual payment= $3,901.78

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The cost of goods for Mandy Manufacturing Company flow through an assembly and a finishing department before being transferred t

laila [671]

Answer:

Option (D) is correct.

Explanation:

Given that,

Beginning work in process = $4,000

Ending work in process in finishing department = $6,000

Cost transferred = $47,000

Direct material = $15,000

Direct labor = $46,000

Overhead = $22,000

Cost incurred in finishing department:

= Beginning work in process + Cost transferred + Direct material + Direct labor + Overhead

= $4,000 + $47,000 + $15,000 + $46,000 + $22,000

= $134,000

Cost of goods transferred to the Finished Goods Inventory account:

= Cost incurred in finishing - Ending work in process

= $134,000 - $6,000

= $128,000

5 0

4 years ago

Suppose that the average growth rate of the economy has been 3%. Given a forecast of 2% growth this year, if rational expecta

Rudik [331]

Answer and Explanation:

Forecast error is a difference between Estimated data and real data, here Estimated data is referred to as forecast data.

According to rational expectations principles, expected forecast error's average always near to be zero.

Expected forecast error may be forecast or predict in future.

So, Expected forecast error will be zero (0%)

4 0

3 years ago

Consider the following three bond quotes; a Treasury note quoted at 87.25, and a corporate bond quoted at 102.42, and a municipa

r-ruslan [8.4K]

Answer:

Total market value of the bonds: 6,972.2

Explanation:

The "quote" will be the percent of the face value at which the title is currently trading.

We will multiply each quoted by the face value to get the market value in dollars:

1,000 x 87.25/100 = 875.5

1,000 x 102.42/100 = 1,024.2

5,000 x 101.45/100 = 5,072.5

Total = 6,972.2

6 0

4 years ago

1. Write down D & S equations for wireless phones; include

N76 [4]

The D - equations for wireless phones: P = D (P,eA,eB)

The S- equation for wireless phones: Q = S (P,eA,eB)

The Exogenous variable A = Price
The Exogenous variable B = Population growth rate

<h3>What is the equation about?</h3>

The demand and supply relationship is one that differs in a lot of ways and often shown using a graph. Note that the upward slope of the curve on a graph shows the law of demand and the demand for wireless phones is one that can be affected by the amount of new mobile phone subscribers, the average cost of buying the wireless phone, and others.

Hence, The D - equations for wireless phones: P = D (P,eA,eB)

The S- equation for wireless phones: Q = S (P,eA,eB)

The Exogenous variable A = Price
The Exogenous variable B = Population growth rate

Learn more about Demand from

brainly.com/question/1245771

#SPJ1

4 0

2 years ago

At December 31, 2021, Sunland Company had a credit balance of $15,300 in Allowance for Doubtful Accounts. During 2022, Sunland w

andrezito [222]

Answer:

See below

Explanation:

During 2022, Sunland Company wrote off accounts totalling $12,800

Entry

Allowance for doubtful account Dr $12,800

---------- To Accounts receivable Cr $12,800

(Being entries to write off accounts initially provided for)

Only one of those accounts ($1,700) was later collected

Entry

Cash account Dr $1,700

----------- To Bad debt expense Cr $1,700

(Being entries to record receipt of cash from account previously written off)

At December 31, 2022 an aging schedule indicated that the balance in Allowance for Doubtful accounts should be $26,800

Entry

Bad debt expense Dr $24,300

---------------- To Allowance for doubtful debt Cr $24,300

(Being entries to recognize bad debt expense at year end based on aging schedule)

Workings

Adjustment required for doubtful accounts

= $26,800 - ($15,300 - $12,800)

= $24,300

3 0

3 years ago