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UkoKoshka [18]
3 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]3 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]3 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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This process helps the organisation to solve the problem before it gets out of control.

Thus, from the above we can conclude that the correct option is B.

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irinina [24]

Answer:

The manager should pick project B

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To determine what decision the manager should make, the NPV of both projects should be calculated.

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

NPV for project A

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NPV for project B

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year 2 = $110,000

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Both projects are profitable but because the firm uses capital rationing , the manager has to pick the now profitbale project, which is project B.

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

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I hope my answer helps you

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A ________ orientation refers to the process of determining the wants and needs of buyers and then providing goods and services
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A <u>customer </u>orientation refers to the process of determining the wants and needs of buyers and then providing goods and services to meet or exceed their expectations.

Customer orientation is a commercial enterprise approach that places the wishes of the client over the desires of the commercial enterprise.

Customer-oriented groups keep in mind that the enterprise won't thrive until it constantly improves customer recognition. it's a way of questioning that aligns your commercial enterprise dreams along with your client's goals.

The purchaser marketplace consists of all of the individuals or households that need goods and services for private consumption or use and features the assets to shop for them.

Learn more about Customer orientation here: brainly.com/question/24553900

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