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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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On January 1, Year 1, Bell Corp. issued $340,000 of 10-year, 8 percent bonds at their face amount. Interest is payable on Decemb
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Answer and Explanation:

The journal entries are shown below:

On Jan 1

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Interest expense  ($340,000 × 8%) $27,200

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3 years ago
Two different manufacturing processes are being considered for making a new product. The first process is less capital-intensive
baherus [9]

Answer:

700 units

Explanation:

FC1 : Fixed Costs from process 1

VC1 : Variable cost per unit from process 1

FC2 : Fixed Costs from process 2

VC2 : Variable cost per unit from process 2

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VC2 = $200 per unit

To calculate the break-even (quantity) point we must equate the TC1 (Total cost of process 1) to TC2 (Total cost of process 2)

TC1 = TC2

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50,000 + 700y = 400,000 + 200y

500y = 350,000

y = 350,000 / 500

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Answer:

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Answer:

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