1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alona [7]
3 years ago
8

Suppose you take out a margin loan for $70,000. You pay an effective rate of 6.3 percent. If you repay the loan in two months, h

ow much interest will you pay? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
1 answer:
Katarina [22]3 years ago
4 0

Answer:

I will pay $537.43 as interest.

Explanation:

Principal amount = F = $70,000

Effective rate = 6.3% / 12 = 0.525% monthly

t = 2 months

Interest Amount for 2 months = [2x (r x F) / 1 − ( 1 + r )^−t] = [2 x (0.525% x 70,000) / 1 - ( 1 + 0.525%)^-2 = $735 / 0.01042 = $70537.43

Interest Amount = $70537.43 - 70,000 = $537.43

Interest payment of two month margin loan for amount $70,000 at effective rate 6.3% is $537.43.

You might be interested in
Turner Company's contribution margin ratio is 15%. If the degree of operating leverage is 12 at the $150,000 sales level, net op
fomenos

Answer:

<em>Net operating income = $1,875</em>

Explanation:

<em>The operating leverage is the ratio of Contribution to Net Operating Income. It is used to analyse the cost structure of a business to determine how much of its total cost is fixed.</em>

It is computed as follows:

<em>Operating leverage = Contribution/Net operating income</em>

Contribution = Contribution margin × Sales revenue

                    = 15% × $150,000

                  = $22,500

Substitute this into the operating leverage equation

12 = 22,500/ y

y = 22,500/12

y = 1,875

<em>Net operating income = $1,875</em>

7 0
3 years ago
A Deaf person goes to a sports bar, and asks the manager to turn on the captions. The manager turns it on. After a few minutes,
MissTica

Answer:

resilience

Explanation:

Based on the scenario being described within the question it can be said that this is called resilience. In the context of psychology, this term refers to the ability of an individual to be able to cope with certain difficult situations. Which in this case the manager agreeing with everyone and simply following the request that have been given shows his resilience towards the situation.

8 0
3 years ago
Read 2 more answers
Use the weighted-average inventory method for the following problem: The beginning inventory on August 1 has two items that are
Andrej [43]

Answer:

Average cost units in inventory=$1,205

Explanation:

August 8

Weighted  average cost in August 8

=( (2 × 100 )+ (3 × 250))/5=$190

Cost of goods sold in August 15 = 190× 3= 570

Balance in inventory in August 15 = 950 - 570 =380

Weighted average cost in August 25 = 380 + (3* 275)/(2+3)= 241  per

Average cost of units = $241 per unit

Average cost units in inventory in August 25= $241×5 =1205

Average cost units in inventory=$1,205

6 0
3 years ago
increaingly good leaders seek to transfer some of their authority to subordinates through a process known
ipn [44]
Increasingly good leaders seek to transfer some of their authority to subordinates through a process known DELEGATION.
6 0
3 years ago
Each of the three categories of investments in debt and equity securities has similar accounting for all of the following transa
Arlecino [84]

Answer:

d. recognition of realized gains or losses on sales

Explanation:

In the case of trading securities, the non-realized gain and losses should be recorded in the income statement. So at the time when securties are sold so here the realized gain are distinct as compared to the afs and htm securties

So as per the given situation, the option d is correct

And, the same should be considered

7 0
3 years ago
Other questions:
  • You plan to deposit $4,700 at the end of each of the next 25 years into an account paying 10.3 percent interest. a. How much wil
    6·1 answer
  • The management of the nation's natural resources is part of the responsibilities of which of the following departments?
    12·1 answer
  • If own price elasticity of demand for your market is -1.2, and your marginal cost is flat at 10, what is the optimal price for y
    10·1 answer
  • What type of contractual system describes a situation where assistance in selecting the location, setting up the store or facili
    14·1 answer
  • The Two Dollar Store has a cost of equity of 11.9 percent, the YTM on the company's bonds is 6.2 percent, and the tax rate is 40
    6·1 answer
  • Proceeds of debt issued for the construction or acquisition of capital assets are recognized by the capital projects fund as "ot
    13·1 answer
  • You have decided to involve the sales personnel in planning for the change and in stocking appropriate new items to sell to gard
    8·1 answer
  • Harper, Inc. acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2017, for $322,000 in cash. The
    5·1 answer
  • Determine the total equivalent units for direct materials, assuming that the first-in, first-out method is used to cost inventor
    9·1 answer
  • A problem is listed below. Identify its type. Mr. Garcia is planning for retirement. He deposits $750 each month into a retireme
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!