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VashaNatasha [74]
3 years ago
8

On May 3, 2017, Leven Corp. negotiated a short-term loan of $685,000. The loan is due October 1, 2017, and carries a 6.86% inter

est rate. Use ordinary interest to calculate the interest.
Business
1 answer:
Semmy [17]3 years ago
6 0

Answer:

704076 $

Explanation:

Exact statement of the question is:

<em>May 3, 2007, Leven Corp. negotiated a short-term loan of $685,000. The loan is due October 1, 2007, and carries a 6.86% interest rate. Use ordinary interest to calculate the interest. What is the total amount Leven would pay on the maturity date? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)</em>

Solution:

Fro 3rd May to October 1st. 2017 there are 151 days

But 365 days = 1 year

==> 151 days = 151× 1/365 =0.414 years

But we use 1 year as one term

==> 1year = 1T

==>  T = 0.414

R= 6.86

P= 685000

A=?

We use formula for the term:

A= P(1+ \frac{R}{100} )^{T}

Where A= ammount at the end of term

P= Loan amount

R= Rate of interest

T= No. of terms

Putting values in this formula;

==> A= 685000×(1+\frac{6.86}{100}) ^{0.414}

==> A= 685000 × 1.02784938489=704076 $

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Answer:

Present value= $20,227.45

Explanation:

Giving the following information:

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We need to use the following formula:

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Date 4= 8,000/1.10^4= 5,464.11

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6 0
3 years ago
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3 years ago
Hall, a divorced person and custodian of her 12-year-old child, filed her 2021 federal income tax return as head of a household.
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The $2000  contribution to an IRA should be treated as an An adjustment to income in arriving at adjusted gross income.

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They are able to do this given that the money is 6000 dollars or a hundred percent of their gross income.

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8 0
2 years ago
Sweet Sue Foods has bonds outstanding with a coupon rate of 5.44 percent paid semiannually and sell for $1,930.36. The bonds hav
tigry1 [53]

Answer:

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Explanation:

<em>The current yield is the proportion of the current price of a bond earned as annual  interest payment.</em>

<em>Current yield = annual interest payment/bond price</em>

<em>Annual interest payment = coupon rate × face value</em>

                                          = 5.44% × $2000

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Current yield

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= $(108.8/1,930.36) × 100

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Note we used the annual interest payment nothwithstanding that interests are paid semi-annually

6 0
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