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
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

You might be interested in
The following information is available for the first month of operations of Lane Inc., a manufacturer of mechanical pencils:
aniked [119]

Answer:

a. Cost of goods sold = Sales - Gross profit

= $416,720 - $242,950

= $173,770

b. Direct materials cost = Materials purchased -Indirect materials - Materials inventory, end of period

= $128,350 - $45,220 - $17,090

= $66,060

c. Direct labor cost =Total manufacturing costs for the period - Direct materials cost - Factory overhead

= $239,610 - $66,060 - ($90,430 + $45,220 + $13,750)

= $239,610 - $66,060 - $149,380

=$239,610 - $215,440

=$24,170

7 0
3 years ago
Hakimo Corp., a manufacturer of audio equipment, has developed a unique wireless speaker system that runs on solar power. The sp
Pavel [41]

Answer:

<u>discontinuous innovation.</u>

Explanation:

Discontinuous innovation occurs when a new product is launched in the market that influences the design of new consumption habits, new value and new market.

They can also be called radical technological innovation, as they not only add value to an existing product, but create a product that can meet needs that were not possible with a previous product, so it is justified to say that there is a new product and market, such as analog cameras and digital cameras.

There is greater risk and cost in creating a product of discontinuous innovation than incremental product continuation, because creating something new involves many processes, time and costs, and there is still the possibility that the product will not be accepted in the marketplace. Therefore, it is essential for the company to conduct research and development, marketing research, create something that adds value and has a low cost to consumers, and then invest effectively in discontinuous innovation.

3 0
3 years ago
In its simplest form, amdahl's law maintains that if a given program would take one hour to run to completion with one processor
AlladinOne [14]
<span>20% is the maximum speed up possible for this program. For this problem, let's assign the time of 1 for the task when using a single processor. Now let's assume that we have an infinite number of processors available to handle the portion of the program that can be executed in parallel so that the execution time for that portion will be 0. That means that the total execution time with an infinite number of processors will be 1 * (0.80 + 0) = 1 * 0.80 = 0.80 So at best, the parallel program will take 80% of the time for the single threaded version. So the speed increase will be (1 - 0.80) / 1 = 0.20/1 = 0.20 = 20%</span>
4 0
3 years ago
Forest City has recently implemented GAAP reporting and is attempting to determine which of the following special revenue funds
vitfil [10]

Answer:

hsbsjsbsbdbebdhdbdbfbrnr

6 0
3 years ago
Which of the following is a false statement? Brokers are paid a fee for their agent services; dealers earn the bid-asked spread
Natalka [10]

Answer:

less volatile the price of a security, the wider the bid-asked spread.

Explanation:

From the answers listed in the question the one that would be considered false would be that the less volatile the price of a security, the wider the bid-asked spread. This is because the bid-asked spread usually depends on the liquidity of the asset, when the asset has a large enough liquidity which causes the volatility to be low the bid-asked spread becomes very narrow since there is not much demand for buyers willing to pay higher prices for the asset in question. The opposite occurs if an asset is very popular and volatility is high which creates a much wider bid-asked spread.

3 0
3 years ago
Other questions:
  • A ski company in Vail owns two ski shops, one on the west side and one on the east side of Vail. Ski hat sales data (in dollars)
    5·1 answer
  • John gets a job with a large firm that audits small businesses. while working there, he becomes friends with dave, who invites h
    6·1 answer
  • The ability of a marketer to identify customers before they make a purchase is called
    10·1 answer
  • Cartel agreements are difficult to maintain because individual members True or False
    11·1 answer
  • A practitioner may perform an agreed-upon procedures engagement on prospective financial statements provided that which of the f
    13·1 answer
  • Rainbow Paints Inc. is a leading paints company in Pakistan. In June 2019, the higher management of the company deliberated and
    5·1 answer
  • Suppose a farmer wants to borrow $176,590.00 to buy a tract of land. The BCS bank will make a 22-year loan fully amortized at 6.
    10·1 answer
  • when management's primary objective is the economic interests of shareholders, this is known as : A.philanthropy B.responsibilit
    10·1 answer
  • An investor purchased 50 shares of stock in a company in 2015. At the time the investor purchased the stock, the value of the st
    11·1 answer
  • One of the widely acknowledged problems with using the consumer price index as a measure of the cost of living is that the CPI a
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!