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kicyunya [14]
3 years ago
12

Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different from those pre

sented here. For long-term loans, the differences may be pronounced. Assume that you take out a $2000 loan for 30 months at 9% APR. How much of the first month's payment is interest
Business
1 answer:
zloy xaker [14]3 years ago
5 0

Answer:

the  first month payment of interest is $74.70

Explanation:

The computation of the first month payment of interest is shown below

Given that

PV = $2,000

NPER = 30

RATE = 9% ÷ 12 = 0.75%

FV = $0

The formula is given below:

= -PMT(RATE;NPER;PV;FV;TYPE)

After applying the above formula, the monthly interest payment is $74.70

hence, the  first month payment of interest is $74.70

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Young Co. issues $800,000 of 10% bonds dated January 1, Year 1. Interest is payable semiannually on June 30 and December 31. The
ANTONII [103]

Answer:

$864,884

Explanation:

The proceeds received from the issuance of bonds equal the sum of the present value of the cash flows associated with the bonds (both the face amount and interest payments) discounted at the interest rate prevailing in the market at the time. The present value of the $800,000 face amount discounted at the market interest rate of 8% is equal to $540,448 ($800,000 × .67556). The present value of the semiannual interest payments of $40,000 [$800,000 × 10% × (6 months ÷ 12 months)] discounted at the market interest rate of 8% is equal to $324,436 ($40,000 × 8.11090). Thus, the proceeds on the sale of the bonds equal $864,884 ($540,448 + $324,436).

7 0
3 years ago
In understanding and analyzing "demand," we focus on how much of a product the buyers are select one:
goldfiish [28.3K]
<span>In understanding and analyzing "demand," we focus on how much of a product the buyers are D. willing and able to buy.
It doesn't really matter whether customers want to buy something if they cannot afford it. This is why companies always try to make their products affordable so that most people can buy them. So, depending on how much money a person has, they will be allocate some of it to buy that particular product.
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7 0
4 years ago
Budgets that are periodically revised and have new periods added to replace those that have lapsed are called:
Marina86 [1]

Answer:

The correct answer is letter "D": Rolling budgets .

Explanation:

Rolling budgets or budget rollovers are those updated permanently as long as the budget of the previous period is met. These types of budgets are considered extensions of existing budgets but with changes added to reflect the current situation of a company.

5 0
3 years ago
Fees are never charged when depositing money into your checking account. True or False
Nat2105 [25]
Hi Brainiac! Thanks for asking a question here in the Business category. <span>
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The answer to this statement would be false. Fees do end up being changed and differed when the money is deposited by the debit card. 

Answer: False ✅

Hope that helps! ★ If you have further questions about this question or need more help, feel free to comment below or post another question and send the link to me. -UnicornFudge aka Nadia 
6 0
3 years ago
Read 2 more answers
Mergers and acquisitions commonly introduce __________ risk, which may change how an organization operates.
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Mergers and acquisitions commonly introduce financial risks that can change how the firm operates.

The main danger is financial; if mergers and acquisitions aren't done right, they can leave businesses with a heavy monetary load. Many mergers that go wrong involve excessive financial commitments that condemn the partnership to failure from the outset.

Risk management is necessary during the whole merger and acquisition process. Management of Merger & Acquisition risk; see due diligence. It's likely that you haven't properly undertaken Merger & acquisition risk management if any of the risks outlined in the preceding sentence are not on the due diligence agenda.

Although this is simply one aspect of due diligence, there is a tendency to think of it as an audit of the target organization. Your due diligence procedure is your Merger & acquisition risk management, in a larger sense.

To learn more about Merger & Acquisition

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5 0
2 years ago
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