All categories

3 years ago

Lesson 7-1 single payment loans

Business

1 answer:

kondaur [170]3 years ago

3 0

Explanation:

The whole principal plus any debt shall be paid by a single payment lender on the same day the lender expires. Instead of multiple instalments, individual interest loans concurrently calculate the full rate.

When should a single payment loan be considered?

If your loan amount of money is high, if you choose a single payment, you will pay a lower interest.

You might, for example, save $12,000 and try to spend $10,000 on shopping like a holiday or a bell. You don't want to deplete your savings because you have a single credit for payment. This can save more money in the future you will pay $10,000 for the loan without dropping the bank account.

You might be interested in

If your answer is zero, enter "O". a. Under a 2017 divorce agreement, Joan is required to pay her ex-husband, Bill, $2,340 a mon

scoundrel [369]

Answer:

$2,400 in 2019 are deductible as alimony.

Step-by-step explanation:

Hillary get divorced in the year = 2016

She has to pay her ex-spouse $200 per month until her son reaches 18 years of age in 7 years.

His son will reach of the age of 18 = 2016 + 7 = 2023

She has to pay $200 till 2023 and $120 thereafter.

Her payments are deductible as alimony in 2019 would be = $200 × 12

= $2,400

$2,400 in 2019 are deductible as alimony.

4 0

3 years ago

As a result of their influence on the quantity, variety, and quality of products, trade barriers ________ domestic consumers.

likoan [24]

The answer in the space provided is hurt. It is because of their influence in the following factors such as the variety, quantity and the quality of products, the trade barriers will most likely hurt the domestic consumers involved in it.

5 0

3 years ago

On july 1, shady creek resort borrowed $280,000 cash by signing a 10-year, 9.5% installment note requiring equal payments each j

Diano4ka-milaya [45]

Answer:

$26,600

Explanation:

the total amount of interest expense included in the first annual principal (or any annual payment actually) = principal's balance x yearly interest rate

$280,000 x 9.5% = $26,600

the principal's balance after the first payment = $280,000 - $26,600 = $253,400

the interest expense included in the second payment = $253,400 x 9.5% = $24,073

3 0

3 years ago

System testing:

yarga [219]

Answer:

C) tests the functioning of the system as a whole.

Explanation:

System testing refers to a process in which a complete system is evaluated to make sure that it works properly and fulfills the requirements. According to this, the answer is that system testing tests the functioning of the system as a whole.

The other options are not right because system testing doesn't separate components or programs as it involves the actual evaluation of the whole system to find defects and it is done before the acceptance testing.

3 0

3 years ago

1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Ma

marishachu [46]

Answer:

1-a. Total Contribution margin is $210,000 and Net operating income is $28,000.

1-b. Degree of Operating Leverage = 7.50

2-a. The expected percentage increase in net operating income for next year is 150%.

2-b. Expected amount of Net Operating Income is $70,000.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Magic Realm, Inc., has developed a new fantasy board game. The company sold 15,000 games last year at a selling price of $20 per game. Fixed costs associated with the game total $182,000 per year, and variable costs are $6 per game. Production of the game is entrusted to a printing contractor. Variable costs consist mostly of payments to this contractor.

Required:

1-a. Prepare a contribution format income statement for the game last year.

1-b. Compute the degree of operating leverage.

2. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Given this assumption:

a. What is the expected percentage increase in net operating income for next year?

b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)

Explanation of the answer is now provided as follows:

1-a. Prepare a contribution format income statement for the game last year.

The contribution format income statement for the game last year can be prepared as follows:

Magic Realm, Inc.

Contribution Income Statement

For Last Year

Details Total ($) Per Unit ($)

Sales 300,000 20

Variable cost (90,000) (6)

Contribution margin 210,000 14

Fixed expense (182,000)

Net operating income  28,000 

1-b. Compute the degree of operating leverage.

Degree of Operating Leverage = Contribution Margin / Operating Income = $210,000 / $28,000 = 7.50

2-a. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Given this assumption: What is the expected percentage increase in net operating income for next year?

Since:

Degree of Operating Leverage = Percentage change in Operating Income / Percentage change in Sales

Substituting the relevant values, we have:

7.50 = Percentage change in Operating Income / 20%

Percentage change in Operating Income = 7.5 * 20% = 150%

Therefore, the expected percentage increase in net operating income for next year is 150%.

2-b. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Given this assumption: What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)

This can be calculated as follows:

Change in Net Operating Income = 150% * $28,000 = $42,000

Expected amount of Net Operating Income = Current Net Operating Income + Change in Net Operating Income = $28,000 + $42,000 = $70,000

6 0

3 years ago