1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
monitta
3 years ago
13

A 10-year loan of 120,000 is to be repaid with payments at the end of each month. Interest is at an annual effective rate of 6.0

0%. The first monthly payment is 800. Each additional payment will be k more than the previous month payment. Find k.
Business
1 answer:
polet [3.4K]3 years ago
6 0

Answer:

k = 9.73.

Explanation:

So, from the question we are given the following parameters or information which are going to be useful in solving this problem, They are:

=> The total amount that was borrowed = 120,000, the number of years to repay the loan = 10 years, the annual interest rate = 6% and the first payment = 800.  

STEP ONE: Determine the present value.

We are going to need to determine the value for the compound interest which is given as: [(1 + 6%)^(1/12) - 1) × 12 = 5.841%

Therefore, the present value calculated as thus:

= 800/ (5.841 / 12) × ( 1 - 1/ (1 + 5.841/12)^(12 ×10)) = 72579.33.

STEP TWO: Determine the value of k.

The other value,r = k / (5.841 /12 × (1 + 5.841 /12)^(12 × 10))× [ (1 + 5.841 / 12)^(12 × 10 )- 1)/( 5.841 /12) -12 × 10).

= 4872.45 × k.

Therefore, 120,000 = 72579.33 + 4872.45 × k.

k = 9.73

You might be interested in
Vesting refers to;
aivan3 [116]

Answer:

The correct answer is A

Explanation:

Vesting is a plan of retirement which means the ownership. In other words,vesting is the term which is described as the certain percentage of the account, will be vested or own by every employee in the plan each year.  

So, it is best described as the how long the employee owns or vest any contributions of the employer to the pension plan of the employee.

6 0
3 years ago
The Analytic Hierarchy Process is being employed in a project selection decision. One major criteria, cost, receives a weighting
pshichka [43]

Answer:

Option "4" is the correct answer to the following situation.

Intermediate-term cost receives a weighting of 12%.

Explanation:

<u>GIVEN:</u>

Total cost receives weighting = 40%

  • short term cost weighting  = 50% of (Total cost receives weighting)

                                    = 50% of 40% = 20%

  • intermediate term cost weighting  

                                    = 30% of (Total cost receives weighting)

                                     = 30% of 40% = 12%

  • long term cost weighting

                                    = 20% of (Total cost receives weighting)

                                    = 20% of 40% = 8%

Therefore option "4" is the correct answer to the above situation.

4 0
2 years ago
Tattoo Tax Arkansas imposes a 6% tax on tattoos and body piercings to discourage this behavior, meaning that the people of Arkan
jenyasd209 [6]

Answer:

c

Explanation:

customers surplus is going to decrease due to the tax increase, some of the customers may not afford and that may affect Arkanas financial performance

6 0
3 years ago
An advantage of the decentralized organization is that
fredd [130]

Answer:

managers are able to make quick decisions that can save your company money. By empowering your managers, you trust their instincts and abilities, because you know they understand the daily work process better than you do.

Explanation:

5 0
3 years ago
Olessa, single and age 60, sells her home for $540,000 after living there for 20 years. Her adjusted basis in that home was $220
Karo-lina-s [1.5K]

Answer:

Net gain = $60,000

Explanation:

Given:

Sale value of house = $540,000

Adjusted value = $220,000

Selling expenses = $10,000

Computation of gross profit on the house:

Gross profit on sale = Sale value of house - Adjusted value - Selling expenses

Gross profit on sale = $540,000 - $220,000 - $10,000

Gross profit on sale = $310,000

Maximum limit on gain from sale of house = $250,000(Form number 1040, Schedule D)

Computation of net gain:

Net gain = $310,000 - $250,000

Net gain = $60,000

7 0
3 years ago
Other questions:
  • If Good C increases in price by 50 50 % a pound, and this causes the quantity demanded for Good D to increase by 60 % 60% , what
    5·2 answers
  • Hailey purchased furniture for her living room and spent quite a bit of money. After she purchased it, she started regretting th
    12·1 answer
  • Marie is a small-business owner who loves to take risks. She also enjoys going out and meeting customers and potential clients—t
    6·1 answer
  • How might a trade deal that allows two nations to freely exchange goods affect the circular flow of income? Neither country is l
    5·1 answer
  • An organization in which management spreads authority and responsibility widely over lower levels is called a ______ organizatio
    7·1 answer
  • Hannah posts her résumé on the websites of several companies. Unfortunately, it is poorly formatted and contains several spellin
    6·1 answer
  • Which of the following is correct?
    5·1 answer
  • Which of the following claims best indicates the policy that the United States government followed toward business during World
    13·1 answer
  • The business judgment rule protects corporate officers and directors when: _________
    10·1 answer
  • georgia has an investment portfolio of five stocks. two of the stocks are energy companies, and three are computer manufacturers
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!