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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:

Correct option is C.

<u>$25,000, $25,000.</u>

Explanation:

Gross profit on sale = (300,000-250,000)/300,000 = 16.67%

Gain recognized in:

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3 0
3 years ago
Compass Inc. purchased 1250 bags of insulation, on account, from Glassco Inc. The bags of insulation cost $5.50 each. Compass pa
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<u>Solution and Explanation:</u>

<u>Journal entry to record the purchase the bags of insultaion.</u>

Date            Particulars                                  Debit                       Credit

                 Inventory                                       $6875

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(Purchased insulated bags from Glassco Inc., 1250bags at the rate $5.5 each)

<u>entry to record the payment for shipping</u>

                Inventory                                          $320

                   cash                                                                           $320

( paid shipping charges for bags to warehouse)

<u>entry for return of the defective bags</u>

              accounts payable                                 $275

                   Inventory                                                                       $275

( returned defective bags to glassco Inc)

<u>To record the payment for the bags kept by compass.</u>

          Accounts payable                                        $6600

            cash                                                                                           $6600

( payment for remaining bags to Glassco Inc., )

4 0
3 years ago
which describes the economic role of a worker? a buys goods and services b provides goods and services c is uninterested in good
maria [59]

Answer:  b provides goods and services

Explanation: I m pretty positive this is the ans bye

3 0
3 years ago
Logan Nettles approached Kevin Lang about becoming a partner in a firm that destroys environmental waste. While Logan would like
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Answer:

<em>c. limited partner.</em>

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<em>In the presented scenario, Logan Nettles should become a</em> <u>limited partner</u>.

Limited partner is the partnership in which one  limited partner is been required compulsory. This is slightly different from general partnership. In this profit of the business is limited and the debt and dis-advantage on the amount of investment is also limited.

So we can see that Logan is also concerned about his disadvantage which is known as liability.

5 0
2 years ago
What are<br>the<br>four factors of prodution​
Dominik [7]
I don’t remember that question
5 0
2 years ago
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