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inn [45]
3 years ago
13

A. Construct an amortization schedule for the $300,000 loan with a 2.2% interest rate compounded monthly. The loan will be paid

back in 15 years making monthly payments. You need to calculate the principal payment and interest payment respectively of each month.
b. Construct an amortization schedule for the $300,000 loan with a 2.7% interest rate compounded monthly. The loan will be paid back in 30 years making monthly payments.You need to calculate the principal payment and interest payment respectively of each month.
Business
1 answer:
Gala2k [10]3 years ago
7 0

Answer:

since there is not enough room here, I prepared two amortization schedules on an excel spreadsheet and I attached them

Explanation:

in order to determine the monthly payment, we can use the formula to calculate present value of an annuity:

PV = annuity payment x annuity factor

annuity payment = PV / annuity factor

  • PV = $300,000
  • annuity factor for 2.2% / 12 = 0.18333% and 180 periods = 153.1964438

I used an annuity calculator to determine the annuity factor

annuity payment = $300,000 / 153.1964438 = $1,958.27

we use the same formulas for the second question:

PV = annuity payment x annuity factor

annuity payment = PV / annuity factor

  • PV = $300,000
  • annuity factor for 2.7% / 12 = 0.225% and 360 periods = 246.54977

I used an annuity calculator to determine the annuity factor

annuity payment = $300,000 / 246.54977 = $1,216.79

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A company is preparing a bid on a government contract for 30 units of a certain product. There is some learning curve effect tha
ololo11 [35]

Answer:

Average time per unit is 59.6 hours

Explanation:

As we know as the work is done the learning of the labor force increases and they require less time to produce the next unit. An average time required to produce specific numbers of unit including cumulative effect of the learning curve.

As per given data

Number of units = 30 unit

Ratio of Time to produce second unit = 90 / 100 = 0.9

Accumulated Average time per unit Formula is

y = aX^b

Where

y = Average time per unit = ?

X = Cumulative Numbers of unit = 30

a = Time required to produce first unit = 100 hours

b = factor used to calculate cumulative average time = log (Learning Curve %/ log2) = Log (90/100) / Log2 = -0.152

Place value value in the formula

y = 100 x 30^ -0.152 = 59.6 hours

7 0
3 years ago
A corporation declares a cash dividend on Friday, December 5th, payable to holders of record on Friday, December 19th. The local
andrew11 [14]

Answer: Thursday December 18

Explanation:

The ex date for regular way trades will be set at Thursday December 18. The ex date for regular way trades is typically set a day before the record date.

In this case, we are told that the corporation declares a cash dividend on Friday, December 5th, which was payable to the holders of record on Friday, December 19th.

Since the record date is the question is Friday, December 19th, then the ex date for the regular way trades will be set at Thursday December 18 which is a day before the 19th.

5 0
3 years ago
Ace Industries has a current assets equal to $3 illion . the company's current ratio is 1.5. and its quick ratio is 1.0.
zavuch27 [327]

Answer:

$2,000,000

$1,000,000

Explanation:

We know that

Current ratio = Total Current assets ÷ total current liabilities  

1.5 = $3,000,000 ÷ total current liabilities  

So, the total current liabilities would be

= $2,000,000

And

Quick ratio = Quick assets ÷ total current liabilities  

1.0 = Quick assets ÷ $2,000,000

Quick assets = $2,000,000

So, the inventory would be

= Total current assets - quick assets

= $3,000,000 - $2,000,000

= $1,000,0000

6 0
3 years ago
Stones Corporation uses a predetermined overhead rate based on machine-hours to apply overhead to the manufacturing process. Las
likoan [24]

Answer: $5 per machine hour

Explanation:

Given the following :

Estimated manufacturing overhead cost = $550,000

Expected machine-hour to be incurred = 110,000

Actual manufacturing overhead = $575,000

Actual machine hour incurred = 120,000

The manufacturing overhead application rate:

Expected manufacturing overhead cost / Expected machine hour to be incurred

= $550,000 / 110,000 machine hour

= $5 per machine hour

8 0
3 years ago
To find out more about the pros and cons of a product, it is often a good idea to study the behavior of the individuals or group
Natalija [7]

Answer:

Copy Testing

Explanation:

Copy testing is a market research analysis method that utilizes the consumers' responses , behavior and feedback to determine the effectiveness and relevance  of an advertisement.

This method reveals a great deal of information about the pros and cons of a particular product through the analysis and study of individuals or group of users.

It addresses media channels like the internet and social media ,  television radios and others.

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