Answer:
e) $93,097
Explanation:
Interest for 1st year = $100,000*8%
Interest for 1st year =$8,000
Principal repayment for 1st year = $14,903 - $8,000
Principal repayment for 1st year = $6,903
Principal balance on January 1,Year 2 = $100,000 - $6,903
Principal balance on January 1,Year 2 = $93,097
Answer:
Because it can be use by many people
Answer:
A) 8 percent.
Explanation:
Coupon rate refers to the expected periodic earnings of a bond until its maturity. The coupon rate is expressed as a percentage of the par value or the face value of the bond. It is similar to the interest rate for other investments option. A bond's coupon rate is, therefore, its interest rate.
A bond coupon rate represents its yearly earnings. However, most bonds will pay the interest twice per year. The bond issuer pays the bondholder regular and fixed interest until the bond matures. The coupon rate determines the bond's profitability. A bond with a higher coupon rate is more attractive to investors.
Answer:
$8,300
Explanation:
Calculation for what Elroy's incremental profit or loss would be if he chooses option 2 over option 1
Using this formula
Incremental Profit of option 2 over option 1= Profit from option 1 - Profit from option 2
Let plug in the formula
Incremental Profit of option 2 over option 1= ($3,600*3)-(3*$1,100 - $800)
Incremental Profit of option 2 over option 1= $10,800 - $2,500
Incremental Profit of option 2 over option 1= $8,300
Therefore Elroy's incremental profit or loss would be if he chooses option 2 over option 1 would be $8,300
Answer:
$200,000
Explanation:
The computation of Net Income is shown below:-
The green lawn firm is over-capable of approving the order. The extra fixed costs do not have to be incurred. This way, fixed costs are avoided and only variable costs need to be incurred.
For computing the net income first we need to find out the profit per unit which is here below:-
Profit per unit = Sell price per unit - Variable Cost per unit
= $1,200 - $1,000
= $200
Total Profit = Profit per unit × 1,000 unit order
= $200 × 1,000 unit order
= $200,000
So, net income increased by $200,000
Therefore for computing the total profit we simply applied the above formula.
