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erik [133]
3 years ago
6

A loan is being repaid with level annual payments of $1,000. Calculate the outstanding balance of the loan if there are 12 payme

nts left. The next payment will be paid one year from now and the effective annual interest rate is 5%.
Business
1 answer:
aleksley [76]3 years ago
3 0

Answer:

$8,306.75

Explanation:

we are given the payment, the interest rate and the number of periods remaining, and we must first determine the principal amount:

P = (A x {([1+i]ⁿ)-1}) / {i[1+i]ⁿ}

  • A = $1,000
  • i = 5%
  • n = 12

P = ($1,000 x {([1+0.05]¹²)-1}) / {0.05[1+0.05]¹²}

P = ($1,000 x 0.79586) / 0.08979

P = $795.86 / 0.08979 = $8,863.57

Now we must determine the interest accrued in 1 year:

interest accrued in 1 year = principal x interest rate = $8,863.57 x 5% = $443.18

principal balance after the payment in 1 year = principal - (payment - interest expense) = $8,863.57 - ($1,000 - $443.18) = $8,306.75

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Answer:

Statement B is correct

Explanation:

Provided Information that,

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Average Collection Period refers to the period in which the cash is collected from debtors.

Thus in the given statements only statement B states that Company A is more efficient in collecting receivables from debtors, thus it is the correct statement.

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3 years ago
Milton Friedman, Karthik Ramanna, and Peter Singer walk into a bar. Unfortunately, itâs not a joke. You are the unlucky bartende
Lilit [14]

Answer:

Consider the following explanation

Explanation:

The discussion started with Mr. Friedman explaining how the want and setting up on MNCs have become way more easier than it was a couple of decades ago. This is because the role of business in the society has increases. With increasing population the demand needs to be met on that level as well. Agreeing with the latter point Mr. Karthik said that yes, the demand needs to met but that should not make MNC and their setup easy. The quality according to him suffers.

Mr.Karthik said that the MNCs are also huge retail shops who must make sure that their production of goods and services are worth opting for. This is actually what business is supposed to do. Unlike the two gentlemen who are busy taking out the judgement on what is right and wrong in business and role it plays in the society, Mr.SInger started to add an important aspect. According to his view the greater role of business today, lies in the fact that it must benefit the society and reap positive externalities.

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3 years ago
You are the Accounting Director for SpaceX based in New York. Your department is implementing new accounting software (called Fi
soldier1979 [14.2K]

Answer:

The change will impact all 300 locations. The letter should be written to entire staff of the SpaceX.

Explanation:

To: All Staff SpaceX Team

Subject: Change over details (First Launch)

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8 0
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Which of the following statements is right about facility location analysis?
RideAnS [48]

Answer:

The correct answer is letter "A": Facility location analysis considers the competitive imperative to be close to customers as to timeliness of deliveries.

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Facility location is part of the research and computational geometry in charge of determining the localization of a company's branches to be closest as possible to the firm's target customers, workers, and suppliers by minimizing the costs. Other factors such as free trading zones or environmental policies are also taken into consideration.

3 0
2 years ago
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