Complete the right half of the following equation to reflect the unemployment rate reported by the BLS.

You plan to borrow $35,000 at a 7.5% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year p

Alexeev081 [22]

Answer:

$2,250

Explanation:

Since terms require you to amortize the loan with 7 equal end-of-year payments, it implies that interest will be paid on the amount outstanding balance for a whole year.

The would be paid in Year 2 can therefore be calculated as follows:

Equal amount of the loan principal = Loan amount / Number of equal end-of-year payments = $35,000 / 7 = $5,000

Loan balance outstanding throughout Year 2 = Loan amount - Year 1 end-of-year payment = $35,000 - $5,000 = $30,000

Year 2 interest payable = Loan balance outstanding throughout Year 2 * Annual interest rate = $30,000 = 7.5% = $2,250.

Therefore, you would be paying $2,250 interest in Year 2.

3 0

3 years ago

Maria works in the HR department at Cloud Zero Inc. She is responsible for helping the line executives strategically address peo

Yuri [45]

Answer:

Maria is likely to be part of the (A) A field generalist

Explanation:

A field generalist is an employee in the HR division who carries out different activities in a given department. Generalists are frequently answerable for authoritative, consistence, situated, and vital obligations. Managerial undertakings likewise are termed as center HR incorporates keeping up representative records, overseeing advantages and finance, and giving worker self-administration.

HR experts may wind up at the crossing point of those two variables, both in seeking positive work experience and utilizing innovation to help screen those endeavors.

3 0

3 years ago

James Corporation is planning to issue bonds with a face value of $502,500 and a coupon rate of 6 percent. The bonds mature in 7

sweet-ann [11.9K]

Answer:

a.

Bond Price = $563,333.90007 rounded off to $563,333.90

b.

Bond Price = $502500

c.

Bond Price = $437232.16025 rounded off to $437232.16

Explanation:

To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is a semi annual bond, we will use the semi annual coupon payment, semi annual number of periods and semi annual YTM. The formula to calculate the price of the bonds today is attached.

a. Case A: Market interest rate (annual): 4 percent

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 4% * 6/12 = 0.02 or 2%

Bond Price = 15075 * [( 1 - (1+0.02)^-14) / 0.02] + 502500 / (1+0.02)^14

Bond Price = $563,333.90007 rounded off to $563,333.90

b. Case B: Market interest rate (annual): 6 percent

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 6% * 6/12 = 0.03 or 3%

Bond Price = 15075 * [( 1 - (1+0.03)^-14) / 0.03] + 502500 / (1+0.03)^14

Bond Price = $502500

c. Case C: Market interest rate (annual): 8.5 percent.

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 8.5% * 6/12 = 0.0425 or 4.25%

Bond Price = 15075 * [( 1 - (1+0.0425)^-14) / 0.0425] + 502500/(1+0.0425)^14

Bond Price = $437232.16025 rounded off to $437232.16

7 0

3 years ago

Pina Colada Corp. had the following transactions during 2022:

LenaWriter [7]

Answer:

D. $(254100)

Explanation:

CASH FLOW FROM FINANCING ACTIVITIES:

Cash Receipts From:

1. Issuance of Stock $302,500

Cash Paid For:

4. Dividend $(24,200)

10. Repayment of Loan $(532,400)

Net Cash Flow from Financing Activities $(254,100)

2. It is Operational Activity.

3. It is Investing Activity.

5. It is Investing Activity.

6. It is Operational Activity.

7. It is Operational Activity.

8. It is Investing Activity.

9. It is Investing Activity.

7 0

3 years ago

Marquis Company estimates that annual manufacturing overhead costs will be $900,000. Estimated annual operating activity bases a

polet [3.4K]

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7 0

3 years ago