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morpeh [17]
3 years ago
6

You need some money today and the only friend you have that has any is your ‘miserly' friend. He agrees to loan you the money yo

u need, if you make payments of $20 a month for the next six months. In keeping with his reputation, he requires that the first payment be paid today. He also charges you 1.5% interest per month.
How much total interest does he expect to earn?

A.) $3.94

B.) $4.35

C.) $3.63

D.) $5.96
Business
1 answer:
Bingel [31]3 years ago
8 0

Answer:

B. The total interest = $4.35

Explanation:

The first question to answer, is  what is the present value of the annuity of the loan and then based on that the total interest can be calculated.

<h2>Present value of annuity= A x [(1-(1+r)-n)/r]*(1+r) </h2>

Where the A represents Annuity = or $20

The r represents the rate or 1.5%

and the n represents the number of periods which is 6 months

Calculating the value =

= 20 x [(1-1.015^-6)/0.015]*1.015

= 20 x [(1-0.91454219251)/0.015]*1.015

= 20*5.782644973

=$115.65

Now that the loan amount is known, the Total Interest can be calculated as follows

Total Interest= number of payments x monthly payments) - the loan amount (calculated above)

= 20 x 6 -115.65

= 120-115.65

The total interest = $4.35

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Which of the following falls in the category, "place" in the marketing mix?
inna [77]

Answer: trade shows

Explanation:

In marketing mix, the place is simply referred to as the process of movement if goods and services from the producer to the prospective consumers or consumers.

The place also refers to how ones good or service is bought and the place where it is being sold. The movement could be through intermediaries like distributors, the wholesalers, retailers etc.

In the above, the place will be the trade shows.

7 0
3 years ago
There is no such thing as a free lunch.This statement best reflects the fact that a. consumers are unwilling to pay for a good u
Alexandra [31]

Answer:  Option B

   

Explanation: Opportunity cost refers to the of loss of profit when an individual or firm chooses one alternative over other.

The statement in the given case, depicts the opportunity cost one has to pay of using the scarce resources  that could be sued on different alternatives.

The lunch is never free depicts that one could have used it in other alternatives that may have produced some economic benefits.

Hence, the correct option is B.

6 0
3 years ago
A company has a cost of debt (before tax) of 5.5% and a cost of equity of 12.8%. In addition, the company has a target capital s
alexira [117]

Answer:

10.12%

Explanation:

Wacc = (D / V)rd (1 - t) + (E / V) re

(D/V) = 0.3

Rd = before tax cost of debt = 5.5%

T = tax rate = 30%

(E / V) = 0.7

Re = marginal cost of equity = 12.8%

= (0.3 x 5.5% × 0.7) + (0.7 x 12.8%) = 1.155% + 8.96% = 10.12%

I hope my answer helps you

4 0
3 years ago
Keesha Co. borrows $230,000 cash on December 1 of the current year by signing a 150-day, 12%, $230,000 note. 1. On what date doe
muminat

Answer:

See explanation section

Explanation:

Requirement 1

April 30 is the maturity date of the note.

December 31 + January 31 + February 28 + March 31 + April 30 = 150 days.

Therefore, the note will be matured in the April 30, next year.

Requirement 2 & 3

Current year Interest: December 1 - December 31 = 30 days interest = $230,000 × 12% × (30 ÷ 360) = $2,300.

Following year Interest: January 1 - April 30 = 120 days interest = $230,000 × 12% × (120 ÷ 360) = $9,200.

Total Interest = $11,500

Requirement 4

Journal Entries

(a)  Dec. 1     Cash                     Debit      $230,000

                    Notes payable     Credit     $230,000

To record the borrow a loan by issuing a 150-day, 12% note.

(b)  Dec. 31   Interest Expense     Debit    $2,300

                    Interest payable      Credit   $2,300

To record the accrued interest expense on December 31 (Current year).

(c)  April 30  Notes payable      Debit     $230,000

                    Interest payable    Debit     $2,300

                    Interest Expense   Debit     $9,200

                                   Cash        Credit       $241,500

To record the payment of the note at maturity.

6 0
3 years ago
A faculty member is retiring, and a committee has been established to select a replacement. HR conducts candidate recruitment, a
lisabon 2012 [21]

Answer:

The dean has violated the brights of other members to be picked for the violation through this act of favoritism.

Explanation:

This dean has gone ahead to rewrite David's description. By so doing he has altered the job description to favor david. This shows a bias to David in the side of this dean thereby causing him to violate the act that says that there should be no discrimination or bias of my form.

Rewriting the job description to favor david is against the ethics of the distributive justice framework which says that the distribution of goods in a society must be done In an equitable manner for all. 2 principles of this are applicable here. The rights based justice and also the legal justice. Rights based justice demands that the rights of people bare respected which the dean has clearly also violated.

8 0
3 years ago
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