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adelina 88 [10]
3 years ago
15

Upon graduation from​ college, Warren Roberge was able to defer payment on his ​$33 comma 000 student loan for 9 months. Since t

he interest will no longer be paid on his​ behalf, it will be added to the principal until payments begin. If the interest is 4.55​% compounded monthly​, what will the principal amount be when he must begin repaying his​ loan?
Business
2 answers:
inn [45]3 years ago
4 0

Answer:

The principal when he begins repaying the loan will be $34,143.45¢

Explanation:

To calculate what the principal amount will be by the time he commences repayment of his loan (nine months later), we would attempt using the compound interest formula. The formula for calculating compound interest:-

Fv = Pv × [1 + (r/n)]^(n×t)

Where Fv = future value

Pv = present value

r = rate of interest

n = number of times of compounding in a year.

With respect to the question:

Pv = 33,000

r = 4.55% = 0.0455

t = 9 months = 3/4 years/0.75years.

n = 12 (since compounding is monthly)

Substituting appropriately:-

Fv = 33,000 × [1 + (0.0455/12)]^(12×0.75)

Fv = 33,000 × (1 + 0.003792)^9

Fv = 33,000 × [(1.003792)^9]

Fv = 33,000 × 1.03465

Fv = $34,143.45¢(new principal)

The interest that would have accrued during that period is $34,143.45 - $33,000 = $1,143.45¢.

Since this interest will be added to the initial amount Warren borrowed, then the resulting principal by the time he begins repayment of the loan after deferring it for nine months will be $34,143.45¢

Vedmedyk [2.9K]3 years ago
3 0

Answer: $ 34143.356

Explanation:

Solution

Compound interest A = P ( 1 + i )^ 9

Where i is the rate

Future value of the loan after 9 months

P = 33000, i = 4.55/100 = 0.0455÷12

n = 9

Substitute the values into the above formular

A = 33000 ( 1 + 0.0455/12)^9

A = $ 34143.356

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Answer:

Stephans shall make the product.

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Explanation:

Provided details,

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In case of buying cost = $22 per unit.

Cost for 5,000 units in case of buying = $22 \times 5,000 = $110,000

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$25,000 cost is avoidable.

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Therefore total cost of purchasing = $110,000 + $15,000 = $125,000

Since total cost of purchasing is more than cost of making, goods shall be manufactured and not produced.

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3 years ago
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Answer:

Development

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The journal entry for an installment note payment includes all except:__________.
soldi70 [24.7K]

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Explanation:

When paying off a note, cash will be used so cash will have to be credited to show that it is decreasing.

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An investment of $1 each in two different securities led to a value of $11 (Security A) and $16 (Security B), respectively, afte
jonny [76]

Answer:

A

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FV = P (1 + r)^n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years

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11^(1/15) =  1( 1 + r)

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r = 17.33%

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r = 1.2 - 1

r = 0.2

r = 20%

Security B earned a higher average annual rate of return as 20% is greater than 17.33%

3 0
3 years ago
"A customer who has his primary residence in Colorado, has a vacation home in Montana. An intrastate offering is being made in t
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Answer:

the customer is prohibited from buying these securities

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In the situation being described the statement that would be true is that the customer is prohibited from buying these securities. This is because intrastate offerings are security offerings that can only be purchased in the state in which it is being offered in and only by permanent residents of that state. Seeing since the customer in this scenario has his permanent residence in Colorado and not Montana, then he cannot purchase this offering.

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