Where do you see Dow Jones in the coming two years ?

(Loan amortization) Mr. Bill S. Preston, Esq., purchased a new house for $170,000. He paid $25,000 down and agreed to pay t

valentinak56 [21]

Answer:

The equal payments amount is $16,678.57

Explanation:

Hi, first we need to determine what the loan amount is, we can do that by substracting $25,000 (down payment) from the cost of the new house, that would be $170,000 - $25,000 = $145,000.

Now, we need to solve for "A" the following equation, given a rate of 11% compounded annually, number of yearly payments equals 30 and a present value of $145,000

$PresentValue=\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }$

Everything should look like this.

$145,000=\frac{A((1+0.11)^{30}-1) }{0.11(1+0.11)^{30} }$

$145,000=A(8.693792573)$

Therefore, A = $16,678.57

Best of luck.

5 0

3 years ago

If collection of an other receivable is expected beyond one year, it is classified as a

spin [16.1K]

Answer:

(D) non-current asset and reported under Investments

Explanation:

The total assets comprise of current assets, fixed assets, and the intangible assets

The current assets include cash, stock, account receivable, etc

which is up to one year

Fixed assets include plant & machinery, land, equipment, furniture & fittings, etc.

And, the intangible assets include patents, copyrights, goodwill, etc.

The fixed assets and the intangible assets have life for more than one year like 5 to 6 years or even more.

In the given question, the collection is made for other receivable which is to be reported under investments and considered as a non-current asset

7 0

3 years ago

Identify characteristics of a consumer loan in the following list. Check all that apply.

frozen [14]

Answer:

Has a formal, negotiated contract Used for a one-time transaction for a specific purpose

Explanation:

A consumer loan is when a person borrows money to form a lender that may be secured or unsecured and they include any types of the mortgages, the refinances, home equity lines of credit, and the credit cards.

Along with auto loans and the home loans and personal loans. As they are a type of the installments they can be negotiated and used for a one-time basis and for a specific purpose.

8 0

3 years ago

A bank has $650,000 in assets to allocate among investments in bonds, home mortgages, car loans, and personal loans. Bonds are e

frosja888 [35]

Answer:

using solver, the optimal solution is:

$325,000 invested in bonds

$162,500.01 invested in mortgages

$162,499.99 invested in personal loans

maximum profit = $66,625

Explanation:

profit maximization equation:

0.1b + 0.085m + 0.095c + 0.125p

where:

b = money invested in bonds

m = money invested in mortgage loans

c = money invested in car loans

p = money invested in personal loans

constraints:

b + m + c + p ≤ 650,000

p ≤ 0.25 x 650,000 ⇒ p ≤ 162,500

m ˃ p

b ˃ p

using solver, the optimal solution is:

$325,000 invested in bonds

$162,500.01 invested in mortgages

$162,499.99 invested in personal loans

maximum profit = $66,625

actually solver gave me the following solution:

$325,000 invested in bonds

$162,500 invested in mortgages

$162,500 invested in personal loans

maximum profit = $66,625

since mortgage loans must be larger than personal loans, I added 1¢ to mortgage loans and subtracted 1¢ from personal loans

4 0

3 years ago

Freemore Company has the following sales budget for the last six months of 2018: July $205,000 October $187,000 August 168,000 N

lisabon 2012 [21]

Answer:

Cash collections for October are $174,600

Explanation:

The following information are given for the amounts collected on sales:

month of sale = 55%

month following sale = 35%

second month following sale = 7%

sales uncollectible = 3%

For the month of October, the cash collections will be from July and October sales.

From July sales

October is the month following July sales, therefore, 35% of the sales from July will be collected in October.

July sales = $205,000

percentage collected in October = 35% = 35/100 = 0.35

∴ cash collected in October from July sales = 0.35 × 205,000 = $71,750

From October sales

55% of sales is collectible in the month of sales

Sales in October = $187,000

55% = 55/100 = 0.55

∴ cash collectible from October sales = 0.55 × 187,000 = $102,850

∴ Total cash collections in October = cash from July sales + cash from October sales

= 71,750 + 102,850 = $174,600

5 0

3 years ago