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
VikaD [51]
3 years ago
9

Interest-only loan​ (regular interest payments each year and principal at​ maturity). Chuck Ponzi has talked an elderly woman in

to loaning him ​$35 comma 000 for a new business venture. She​ has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the ​$35 comma 000 with an annual interest rate of 12​% over the next 15 years. Determine the cash flow to the woman under an​ interest-only loan, in which Ponzi will pay the annual interest expense each year and pay the principal back at the end of the contract. What is the amount of payment that the woman will receive at the end of years 1 through 14​?
Business
1 answer:
lord [1]3 years ago
7 0

Answer:

Ans. From years 1 through 14 she will receive $4,200 and ending year 15 she will receive $39,200 (which is $35,000 of the loan plus $4,200 interest)

Explanation:

Hi, this works just like a bond with a coupon, so first we need to find the amount of interest that she is going to receive every year, at the end of the year, with an annual interest rate of 12%.

Interests=Loan*(interestRate)

Interest=35,000*0.12=4,200

So, that is what she will receive every year at the end of the year from yr1 through 14. in year 15 she will get $39,200, which is the interest + the principal, in our case, $35,000.

Best of luck.

You might be interested in
Which of these contains data that identifies a product?
zmey [24]

Answer:

A. UPC

Explanation:

A UPC is an acronym for universal product code. UPC is typically used for the identification of a specific product and its manufacturer (vendor) through a unique code that is printed on the product.

Basically, a universal product code (UPC) comprises of two (2) main parts;

  • A machine-readable barcode that contains sets of vertical black lines.
  • A unique twelve (12) digit number placed beneath or adjacent to the machine-readable barcode.

The first six-digits of the UPC represents the manufacturer and is printed on all of its products while the next five-digits is the product's unique reference number (item number) and the last digit is typically known as a check digit, used for the verification of the authenticity of a UPC.

Generally, the universal product code are usually scanned with a barcode scanner and this makes it easier to identify a product, as well as its price.

<em>Hence, a universal product code (UPC) contains data that identifies a product. </em>

6 0
3 years ago
Select the correct answer from each drop-down menu.
OverLord2011 [107]

Answer:

A personal budget provides <u>a detailed account</u> of income and expenses for a <u>period.</u>

Explanation:

A personal budget is a plan of how one intends to spend their income.  It shows the source of income and the total on one side. The expenses are listed on a different side. Each expenditure item is listed and its estimated amount is indicated. The total of all incomes and expenses is shown on their respective sides.

A personal budget may be prepared for a regular income say monthly, weekly, or quarterly payments. It can also be prepared for irregular incomes such as loans, gifts, or bonuses.

7 0
3 years ago
A company settles a long-term note payable plus interest by paying $68,000 cash toward the principal amount and Page 565 $5,440
Juli2301 [7.4K]

Answer:

$68,000

Explanation:

The long-term note payable is a debt that is formally established through a written agreement. An example of long-term note payable is a bank loan.

When the principal and the interests of a long-term note are paid, they represent Cash outflows from the business and are recorded in the Cashflow Statement. However, their treatments are different. Another way to put it is that they bring a reduction in the cash of the organisation.

The $68,000 principal amount paid is an outflow from the company that is recorded in the financing activity section of the Cash Flow Statement

The Interest of $5,440 is also an outflow from the business but it is reported in the operating activity section of the Cash Flow Statement. The reason for its report is that it is actually reported in the Organisation's Statement of Income as an expense for the year. It, therefore, qualifies as an operating activity expense or outflow.

7 0
3 years ago
You are tasked with generating twice the amount of qualified leads your company generated last quarter. With your company’s bott
Alexxx [7]

Answer:

b. You could increase the chances of your current traffic choosing to convert and move down your funnel

Explanation:

This has the ability over time to significantly lower the cost of acquiring a customer and to have a positive impact on your return on investment.

5 0
3 years ago
Yang Corporation starts a foreign subsidiary on January 1 by investing 25,000 rand. Yang owns all of the shares of the subsidiar
Lisa [10]

Answer:

$3,000 credit

Explanation:

Given the followin currency exchange rates for 1 rand are as follows:

January 1 $0.25 = 1 rand

Average for the year 0.28 = 1

December 31 0.31 = 1

Net income conversion Investment using January 1 rate = 50,000 rand × $0.25 = $12,500

Net income conversion Investment using December 31 rate = 50,000 rand × $0.31 = $15,500

Credit (Debit) = $15,500 - $12,500 =$3,000

Therefore, the translation adjustment that Yang will report at the end of the current year is $3,000 credit since the difference is positive.

4 0
3 years ago
Other questions:
  • An (BLANK) is a reward or punishment that encourages people to behave in certain ways.
    14·1 answer
  • Wilson, a sales representative at a health club, tried selling a $700 membership plan to one of the club's most loyal customers.
    8·1 answer
  • Good Y is a normal good. If the average income of those who buy good Y rises, the _____________ curve for good Y will shift ____
    8·1 answer
  • Suppose that the reserve requirement is 10% and that the Federal Reserve purchases $5 billion in bonds from a brokerage firm.Ini
    8·2 answers
  • Kari has been saving money for college for the past four years; she thinks that she is close to her goal amount of $30,000 which
    12·1 answer
  • Demand is likely to be most elastic for which of the following: Ground beef O Footwear O Bread O Concert tickets​
    10·1 answer
  • Taylor Company neglected to amortize the discount on outstanding ten-year bonds payable. What is the effect of the failure to re
    10·1 answer
  • On July 1, 2018, Fred City ordered $1,500 of office supplies.They were to be paid for out of the general fund. Entry under:
    7·1 answer
  • Using ________, measurements such as testing assumptions about the business, attributes the customers like, and retention rates
    5·1 answer
  • Where should you explain the factors that led you to submit an unsolicited proposal, such as conversations with members of the r
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!