Compound interest would be the correct answer.
Answer:
187, 450.00
Explanation:
Cost of the asset : $ 200,000.00
Interest rate at 10 %
Payment per year = 32,550.00
First year total amount due = 10% plus asset cost
= ($200,000x 10/100)= 200,000
=$20,000+200 000
=$220,000.00
After deduction = $220,000- 32, 550
=$ 187, 450.00
Answer:
Early settlement Discount: It is offered to customer to encourage them to pay earlier than the payment date.
Bulk Discount: If the customer buys over a certain quantity, he will get a discount.
Answer:
The correct answer is A: interest= $21048
Explanation:
An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term. While each periodic payment is the same amount early in the schedule, the majority of each payment is interest; later in the schedule, the majority of each payment covers the loan's principal.
Each payment is the same ($49,148), but the proportions of interest and capital pay changes. The interest proportion decreases from pay to pay.
Loan= 186000
i= 15%
n= 6 years
First pay:
i=186000*0,15=27900
amortization= 49148-27900=21248
Second pay:
i=(186000-21248)*0,15=24712
amort=49148-24712=24436
Third pay:
i=(164752-24436)*0,15=21048
amort=49148-21048=28100
While payments progress, interest decreases and amortization increases.
