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tensa zangetsu [6.8K]
3 years ago
12

A mortgage requires you to pay $70,000 at the end of each of the next eight years. The interest rate is 8%. a. What is the prese

nt value of these payments? b.Calculate for each year the loan balance that remains outstanding, the interest payment on the loan, and the reduction in the loan balance.
Business
1 answer:
rewona [7]3 years ago
5 0

Answer:

a. $402,264

b. Working for each year the loan balance that remains outstanding, the interest payment on the loan, and the reduction in the loan balance is made in an MS Excel file which attached with this answer. Please find it.

Explanation:

a.

Present value of these payments can be calcullated by following formula

P = r ( PV ) / 1 - ( 1 + r )^-n

P = payment per year = $70,000

r = rate per period = 8%

n = number years = 8 years

PV =  present value of all payments = ?

$70,000 = 8% x PV / 1 - ( 1 + 8% )^-8

$70,000 = 0.08 x PV / 1 - ( 1.08 )^-8

$70,000 = 0.08 x PV / 0.45973

$70,000 x 0.45973 = 0.08 x PV

$32,181 = 0.08 x PV

PV = $32,181 / 0.08

PV = 402,263.75

Download xlsx
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Answer:

a. Who are we? Who will we become?

Explanation:

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A mission statement is typically a description of the overall goal or purpose for which an organization was established and what it hopes to achieve in the future.

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6 0
3 years ago
Which contractual standard for product safety and liability says that buyers chose to make purchases and therefore every purchas
taurus [48]
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3 0
3 years ago
A bank has $8,000 in deposits and $6,000 in loans. It has loaned out all it can given the reserve requirement. It follows that t
Wittaler [7]

Answer:

c. 25 percent.

Explanation:

The computation of the reserve requirement percentage is shown below:

Given that

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So the required reserve is

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= $8,000 - $6,000

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Hence, the correct option is c. 25 percent

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

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3 years ago
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Answer:

A. Retained earnings

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Rick's Internet Corporation's balance in Retained Earnings is $30,000. The board of directors directs that $15,000 be appropriat
gtnhenbr [62]

<u>Answer</u> is D. remain at $30,000.

<u>Explanation:</u>

Rick's Internet Corporation balance in retained earnings = $30,000

Appropriated earning for future business expansion = $15,000

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