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GarryVolchara [31]
3 years ago
15

Currently, you owe the bank $9,800 for a car loan. The loan has an interest rate of 7.75 percent and monthly payments of $310. Y

our financial situation recently changed such that you can no longer afford these payments. After talking with your banker and explaining the situation, he has agreed to lower the monthly payments to $225 while keeping the interest rate at 7.75 percent. How much longer will it take you to repay this loan than you had originally planned?
Business
1 answer:
Ostrovityanka [42]3 years ago
7 0

Answer:

It will extend the loan for 15.83 months = 16 more months.

Explanation:

We need to calcualte the difference in time between one option and another:

Original Loan:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C  $310.00

time n

rate 0.0064583 (0.0775annual rate / 12 month per year)

PV $9,800

310 \times \frac{1-(1+0.0064583)^{-n} }{0.0064583} = 9800\\

We rearrenge and solve as much as we can:

(1+0.0064583)^{-n}= 1-\frac{9800\times0.0064583}{310}

(1+0.0064583)^{-n} = 0.79583439

Now, we solve using logarithmics properties:

-n= \frac{log0.795834387096774}{log(1+0.0064583)}

35.47385568

Now we calcualte with the new terms:

C  $225.00

225 \times \frac{1-(1+0.0064583)^{-n} }{0.0064583} = 9800\\

(1+0.0064583)^{-n}= 1-\frac{9800\times0.0064583}{225}

(1+0.0064583)^{-n}= 0.71870516

-n= \frac{log0.718705155555555}{log(1+0.0064583)}

51.30909653

Last step, we solve for the difference:

51.30 - 35.47 = 15.83 = 16 more months

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A learning rate of 0.9 means each __________ of the cumulative output reduces unit costs by __________.
lyudmila [28]

Answer:

b. 10% doubling

Explanation:

Options are <em>"a. tripling, b. 10% doubling, c. 90% tripling, d. 90% doubling, e. 10%"</em>

In this question, 90%(0.9) learning rate means that (1-0.9)10% unit of input is reduced each time the production is doubled. In a nutshell, the learning curve percentage represents the proportion by which the amount of an input per unit of output is reduced each time production is doubled.

4 0
3 years ago
Moon Lee received her bank statement on September 8, showing a balance of $2,009.32. The balance shown in her checkbook was $2,4
Ivenika [448]

Answer:

Reconciled balance for both bank and cheque book statement is $2,572.51

Explanation:

To find the reconciled balance, we start of with reconciling the bank statement with cheque book statement

Bank statement

Balance as per bank statement

$2009.32

Add: deposits in transits

$1,197.87

Less: outstanding checks

($310.18 + $324.50)

Reconciled balance

$2,572.51

Cheque book

Balance as per cheque book

$2,469.31

Add: interest earned

$109.20

Less: service charge

($6)

Reconciled balance

$2,572.51.

8 0
3 years ago
An analysis of stockholders' equity of Hahn Corporation as of January 1, 2010, is as follows:
charle [14.2K]

Answer:

Additional paid-in capital is $904,200

Explanation:

Number of shares, issued and outstanding = 93,000 shares

Acquired 2,460 shares of its stock for $75,000.

Sold 2,000 treasury shares at $35 per share.

Sold the remaining 460 treasury shares at $20 per share.

i) Acquired 2,460 shares of its stock for $75,000.

= Treasury Stock Dr $75,000

ii) Sold 2,000 treasury shares at $35 per share.

Treasury Stock (2,000 × $35) = Dr $70,000

iii) Sold the remaining treasury shares at $20 per share.

Treasury Stock (460 × $20) = Dr $9,200

Total Treasury Stock = $75,000 - $70,000 - $9,200

= ($4,200)

Paid in Cap-tresury stock= 10,000-5000=5000

Additional Paid in capital = Paid in Capital - treasury stock

= 900,000 + 4,200 = $904,200

6 0
3 years ago
A case in which people like to drink orange juice at breakfast but not before going to bed, and do not like to drink milk for br
yulyashka [42]

Answer:

Letter C is correct. <u>Person by situation interaction.</u>

<u>Explanation:</u>

This is a cognitive process that occurs through the individual perspective of each human being. This implies that our behavior is not totally conditioned by an automatic response predetermined by any variables, but what determines our way of being and acting is the set of learnings, memories, thoughts and perceptions about certain situations as well. as the process of social interaction, which determines how the experiences and actions lived by an individual in society will actively influence their tastes, actions and perceptions about society in general.

8 0
3 years ago
Bennett Co. has a potential new project that is expected to generate annual revenues of $262,100, with variable costs of $144,00
swat32

Answer:

Operating cash flow= $29,886

Explanation:

Giving the following information:

Sales= $262,100

Total variable cost= $144,000

Total fixed costs= $61,300.

Annual interest expense of $24,500. The annual depreciation is $25,200 and the tax rate is 34 percent.

<u>We need to determine the operating cash flow:</u>

Sales= 262,100

Total variable cost= (144,000)

Contribution margin= 118,100

Total fixed costs= (61,300)

Depreciation= (25,200)

Interest= (24,500)

EBIT= 7,100

Tax= (7,100*0.34)= (2,414)

Depreciation= 25,200

Operating cash flow= 29,886

7 0
3 years ago
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