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UkoKoshka [18]
2 years ago
15

A 100,000 loan is being repaid in 360 monthly installments at a 9% nominal annual interest rate compounded monthly. The first pa

yment is due at the end of the first month. Determine which payment is the first where the amount of principal repaid exceeds the amount of interest paid.
Business
2 answers:
skad [1K]2 years ago
6 0

Answer:

The payment after 1 year will be

F=P(1+i)^n

n=1 year

P=100,000

F=100000(1+0.09)

F=109000 after 1 year

interest=9/100*100000=90000

exceeded payment=109000-90000=19000

ale4655 [162]2 years ago
4 0

Answer: The 269th

Explanation:

payment= 100000×(9%/12)/(1-1/(1+9%/12)^360)

=804.6226169

Note that,

payment equal to the sum of principal and interest.

Payment= Principal + interest.

principal>interest

payment - interest >interest

interest<payment/2

Therefore,

Interest <804.6226169/2

Interest<402.3113085

The oustanding loan at the beginning of the month<402.3113085 × 12/9%

The loan oustanding at the beginning of the month < 53641.5078

So, the first month will be month after the month where loan oustanding after the monthly payment is less than 53641.5078

Time taken for the balance to reach less than 53641.5078 is NPER(9%/12,-804.6226169,100000,-53641.5078)=267.234234 or 268 months

Hence, first month is 268+1=269

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Sunland Company has outstanding 500000 shares of $2 par common stock and 150000 shares of no-par 7% preferred stock with a state
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Answer:

Total dividend paid = $340,000

Preferred dividend = 7% x $4 x 150,000 x 3 years = $126,000

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The correct answer is C

Explanation:

There is need to calculate the preferred dividend for 3 years, which is a function of dividend rate, current market price, number of preferred stocks outstanding  and number of years. The current market price of the preferred stock is used for the computation because the preferred stock has no par value. Then, the amount of dividend paid to common stock holders is the difference between the total dividend paid and preferred dividend.

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Builtrite had sales of $700,000 and cogs of $280,000. in addition, operating expenses were calculated at 25% of sales. builtrite
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This is the presentation of the income statement of Builtrite in order to compute the net income:

Sales                                                                                   $700,000

Less: COGS                                                                        $280,000

Gross Profit                                                                         $420,000

Less: Operating expenses ($700,000 x 25%)    $175,000

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          Capital loss                                               $70,000    $270,000

Total                                                                                     $150,000

Add: Dividend income                                         $40,000

          Capital gain                                               $55,000    $95,000

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Finishing Touches has two classes of stock authorized: 7%, $10 par preferred, and $1 par value common. The following transaction
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93) Jack Corporation purchased a 20% interest in Jill Corporation for $1,500,000 on January 1, 2021. Jack can significantly infl
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Answer:

$1,200,000

Explanation:

Jack Corporation

Carrying value before net loss:

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Jack's share of net loss recognized in full:

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