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Aliun [14]
3 years ago
7

You have just taken out a $ 23 comma 000 car loan with a 4 % ​APR, compounded monthly. The loan is for five years. When you make

your first payment in one​ month, how much of the payment will go toward the principal of the loan and how much will go toward​ interest? ​(Note: Be careful not to round any intermediate steps less than six decimal​ places.)
Business
1 answer:
True [87]3 years ago
6 0

Answer:

Interest = $75.90

Principal = $347.64

Explanation:

First find the payment that is required per month. It will be an Annuity payment as the present value of the loan is given.

The loan is for 5 years compounded monthly so period is;

= 5 years * 12 months

= 60

Interest = 4/12

Present Value of Annuity= Payment * (1 - (1 + r) ^ -n)/r

23,000 = Payment * (1 - ( 1 + 4/12%) ^ -⁶⁰)/ 4/12%

23,000 = Payment * 54.304

Payment = 23,000/54.304

= $423.54

Interest Payment is;

= 4/12% * 23,000

= $75.90

Amount going towards Principal;

= 423.54 - 75.90

= $347.64

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Last year Ann Arbor Corp had $250,000 of assets (which equals total invested capital), $305,000 of sales, $20,000 of net income,
Firdavs [7]

Answer:

8.32%

Explanation:

The computation of  cost reduction improve the ROE is shown below:-

For computing the increase in ROE first we need to follow some steps which is here below:-

Debt = capital × Debt

= $250,000 × 37.5%

= $93,750

Equity = Assets - Debt

= $250,000 - $93,750

= $156,250

New ROE = New Net income ÷ Equity

= $33,000 ÷ $156,250

= 21.12%

Old ROE = Old Net income ÷ Equity

= $20,000 ÷ $156,250

= 12.8%

Increase in ROE = New ROE- Old ROE

= 21.12% - 12.8%

= 8.32%

8 0
3 years ago
In​ 2011, the value of the GDP deflator is 113. ​(Enter your response rounded to the nearest whole​ number.) In​ 2012, the value
kirill [66]

Answer:

2011 = 113

2012 = 119

Explanation:

The computation is shown below:

GDP deflator  = (Nominal GDP) ÷ (Real GDP) × 100

For 2011, it would be

                       = ($​13,495 billion) ÷ (​$11,919 billion) × 100

                       = 113

For 2012, it would be

                       = ($14,241 billion) ÷ (​$12,007 billion) × 100

                       = 119

In order to find out the GDP deflator, we divided the Nominal GDP by the Real GDP

3 0
3 years ago
22. Preferred stockholders hold a claim on assets that has priority over the claims of A) both common stockholders and bondholde
DedPeter [7]

Answer:

C) common stockholders, but after that of bondholders.

Explanation:

Preferred stockholders hold a claim on assets that has priority over the claims of common stockholders but after that of bondholders.  

The preferred shareholder is given preference for the distribution of dividends, which is higher than the common stock. It is paid as per the discretion of the company´s directors. Instead, they have limited right and they do not vote for corporate governance like a common stockholder. In the case of the dissolution of the company, the preferred shareholders will still receive payment due to them in terms of dividends. They have a feature of both bonds and equity stockholders.

6 0
3 years ago
Seth invested $20,000 in Series EE savings bonds on April 1. By December 31, the published redemption value of the bonds had inc
11Alexandr11 [23.1K]

Answer:

700 for interest

Explanation:

6 0
3 years ago
Mandi puts $20 in her savings account. the account pays 3% simple interest. how much interest will she earn in 2 years?
cupoosta [38]
$20x2x3=120    
120/100=$1.20
Interest= $1.20
8 0
3 years ago
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