The difference between the monthly payment of R and S is equal to $48.53 by following the compound interest formula. Thus, Loan R's monthly loan amount is greater than Loan S.

<h3>What is a Compound interest loan?</h3>

Combined interest (or compound interest) is the loan interest or deposit calculated based on both the original interest and accrued interest from earlier periods.

$\rm\,For\,R\\\\P = \$\,17,550\\r\,= 5.32\%\\Time\,= n= 7\,years\\Amount\,paid= [P(1+\dfrac{r}{100\times12})^{n\times12} ]\\=[ 17,550 (1+\dfrac{5.32}{100\times12})^{7\times12} ]\\= [ 17,550 (\dfrac{12.0532}{12})^{84} ]\\\\= [ 17,550 (1.00443^{84} ]\\\\= \$ 25,440.48\\\\Total\,monthly\,payment = \rm\,\dfrac{25,440.48}{84}\\\\= \$\, $302.86\\\\$

$\rm\,For\,S =\\\\P=\,\$ 15,925\\r\,= 6.07\%\\T=n= 9\,years\\\\Amount\,paid\,= [P(1+\dfrac{r}{100\times12})^{n\times12} ]\\\\\= [15,925(1+\dfrac{0.0607}{12})^{9\times12} ]\\\\\\= [15,925(1+\dfrac{0.0607}{12})^{108} ]\\\\=[15,925(1.7247.84)} ]\\\\\= \$27,467.19\\\\Total\,monthly\,payment =\dfrac{\rm\,\$\,27,469.19}{108}\\\\= \$ 254.326\\\\$

The difference between the monthly payment of R and S is equal to $48.53.

Hence, Loan R's monthly payment is greater than the loan's monthly payment by $48.53

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5 0

2 years ago

Botosan Factory has budgeted factory overhead for the year at $717,474, and budgeted direct labor hours for the year are 364,200

Mila [183]

Answer:

$652,858

Explanation:

Predetermined overhead rate = Budgeted Overheads ÷ Budgeted Activity

= $717,474 ÷ 364,200

= $1.97 per direct labor hour

Allocated overheads = Predetermined overhead rate x Actual Activity

= $1.97 x 331,400 direct labor hours

= $652,858

therefore,

The overhead allocated for May is $652,858.

6 0

3 years ago