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
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

You might be interested in
Intel buys a manufacturing machine for $100,000 for use in making computer processors. The company also paid 7% ($7,000) sales t
Vadim26 [7]

Answer:

$110,000

Explanation:

Calculation for What is the machine's original cost basis that the firm records on the balance sheet

Machine's Original cost basis

Machine Cost $100,000

Add Sales Tax $7,000

Add Shipping Cost $3,000

Machine's Original cost basis $110,000

($100,000+$7,000+$3,000)

Therefore the machine's original cost basis that the firm records on the balance sheet will be $110,000

3 0
2 years ago
Frolic Corporation has budgeted sales and production over the next quarter as follows: August September Sales in units Productio
Black_prince [1.1K]
Bro its c im sure just put c
5 0
2 years ago
Brent is a full-time exempt employee in Clark County, Indiana. He earns an annual salary of $39,360 and is paid semimonthly. He
serious [3.7K]

Answer:

  • Federal Income tax ⇒ $80
  • FICA ⇒ $125.46
  • State income tax ⇒ $52.97
  • Local deduction - Clark County Income tax ⇒ $29.52

Explanation:

Brent gets paid semi-monthly so his pay per period is:

= 39,360 / (12 months *2)

= $1,640

Based on the table therefore, his federal tax is:

= $80

This figure is based on the intersection between income of $1,640 and 3 withholding allowances.

FICA tax rate is 7.65% so his FICA tax is:

= 1,640 * 7.65%

= $125.46

State income tax = $52.97

Local deduction - Clark County Income tax = $29.52

Total deductions:

= Federal tax + FICA + State income tax + Clark County income tax

= 80 + 125.46 + 52.97 + 29.52

= $287.95

3 0
3 years ago
When total revenues fall below total costs, production should end. However, if marginal revenue exceeds variable cost, productio
const2013 [10]

Answer:

False

Explanation:

A firm should end production and shut down only when its total revenue falls below variable costs, because at this point, production will bring about more losses, compared to if the company isn't producing at all.

<u>If total revenue exceeds and can cover its variable cost, a firm should remain in operation in the short run</u> (even if it is incurring losses), as this contributes to paying off the firm's fixed costs.

8 0
3 years ago
A business issues 20-year bonds payable in exchange for preferred stock. This transaction would be reported on the statement of
Oxana [17]

Answer:

A. a separate schedule.

Explanation:

This is explained to be cash flow schedule or also cash flow statement. It is explained to be on out of the three financial statement which used generally to report for cash which been generated and how this money has been totally been spent within a period or interval which could be a week, month, quarter or even probably a year.

In the statement of cash flows, the cash flows are known to be generated from investing activities section while inclusion of receipts from the sale of investments. This is why in the stated 20 year payable bond, it is known to have been recorded in statement of cash flows in a separate schedule.

4 0
3 years ago
Other questions:
  • A consumer is someone who uses goods and services.<br> True<br> False
    5·2 answers
  • If consumer income increases by $100 million in the united states and the mpc is .6, by how much will consumption increase?
    14·1 answer
  • What is a panel discussion
    12·1 answer
  • The deeds and actions of a producer indicate what kind of authority?
    8·1 answer
  • Sometimes when an organization first starts horizontal coordination efforts to promote innovation, is needed to help employees c
    5·1 answer
  • Which of the following statements is correct? a. Vertical equity is the idea that taxpayers with similar abilities to pay taxes
    10·1 answer
  • Due to a labor strike, Clifford is considering purchasing the subcomponents from an outside supplier for $250 per unit rather th
    15·1 answer
  • Read the excerpt from a folktale.
    12·2 answers
  • Zephyr Inc., a manufacturer of electronics products, is planning to release a new product into the market. They are hoping to ta
    11·1 answer
  • In year 1, Crest Company purchased equipment for $75,000. Crest uses straight-line depreciation over a 5-year useful life with n
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!