Answer:
$250,000
Explanation:
The computation of the interest expense is shown below:
Given that
Net Income = $3,500,000
Tax rate = 30%
EBIT = $5,250,000
As we know that
EBT = EBIT - Interest Expense
So,
Interest expense = EBIT - EBT
where,
EBT = Net Income ÷ (1 -Taxes)
= $3,500,000 ÷ ( 1 - 30%)
= $5,000,000
And, the EBIT is $5,250,000
So, the interest expense is
= $5,250,000 - $5,000,000
= $250,000
We simply applied the above formula
Answer:
Monthly payment = $469.701
Explanation:
<em>Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest. </em>
The monthly equal installment is calculated as follows:
Monthly equal installment= Loan amount/Monthly annuity factor
Loan amount = 20,000
Monthly annuity factor =
=( 1-(1+r)^(-n))/r
r- Monthly interest rate (r)
= 6/12= 0.5%
n- Number of months ( n) = 20 × 4 = 48
Annuity factor
= ( 1- (1.005)^(-48)/0.005= 42.5803
Monthly installment= 20,000 /42.5803 = $469.701
Monthly installment = $469.701
Monthly payment = $469.701
C. Marginal Cost
Marginal cost is the <em>additional </em>cost to produce each unit of a good.
