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3 years ago

4. If the monthly finance charge on a loan is 1%, then the A.P.R. on that loan would be

Business

1 answer:

zhannawk [14.2K]3 years ago

3 0

Answer:

B. 12%

Explanation:

Given - If the monthly finance charge on a loan is 1%

To find - The A.P.R. on that loan would be

1 year = 12 months

Given that, monthly finance charge = 1%

So,

Cumulatively,

Annual Percentage rate (APR) = 12×1% = 12%

So,

The correct option is - B. 12%

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Which of the following investments has a higher present value, assuming the same (strictly positive) interest rate applies to

Sladkaya [172]

Answer:

Investment Y has a greater present value

Explanation:

present value is the sum of disoucnted cashflows

i would choose an interest rate of 10% to calcuate the present values

for investment X

cash flow in year 1 = $5,000

cash flow in year 2 = $7,000

cash flow in year 3 = $9,000

cash flow in year 4 = $11,000

I = 10%

PV = $24,605.56

or investment Y

cash flow in year 1 = $11,000

cash flow in year 2 =$9,000

cash flow in year 3 = $7,000

cash flow in year 4 = $5,000

I = 10%

PV = $26,112.29

Investment Y has a greater present value

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

7 0

3 years ago

On January 1, 2021, Gundy Enterprises purchases an office building for $151,000, paying $41,000 down and borrowing the remaining

Nataly_w [17]

Answer:Gundy Enterprise journal $

Date

Jan 31 2021

Income statementl Dr 641.67

Mortage Interest. Cr. 641.67

Recognition of interest payable on mortgage loan for December 2021

Jan 31 2021

Mortgage principal Dr 635.52

Mortgage interest Dr. 641.67

Bank Cr. 1277.19

Narration.payment of principal and interest Interest due on mortgage loan as at January 31 2021.

Explanation:

The monthly installment payments of $1277.19 consist of both the principal sum and accompanying monthly interest.

The interest needs to be first recognized as an expenses into the income statement and increase in the mortgage loan. This will prevent an over deduction on the mortgage loan.

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3 years ago

The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP. The

Mazyrski [523]

Answer:

$1,650,000

Explanation:

Preparation of the lower portion of the 2021 income statement .

2021 Income from continuing operations before income taxes5,800,000

Income tax expense(1,450,000)

($5,800,000 × 25 %)

Income from continuing operations4,350,000

Discontinued operations:

Loss from operations of discontinued component(3,600,000)

Income tax benefit 900,000

(25*3,600,000)

Loss on discontinued operations(2,700,000)

Net income$1,650,000

(4,350,000-2,700,000)

Therefore the the lower portion of the 2021 income statement is $1,650,000

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3 years ago

Janet bought flour and used it to bake bread she ate. ABC Bakery bought flour which it used to bake bread that customers purchas

andrew11 [14]

Answer:

Explanation:

In the first case flour can be counted as final good as it was consumed just after that . Bread for self consumption is not a good . On the other hand bread

is a final good in second case as it had some commercial value . Flour is work- in -process.

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3 years ago

What is the term used to describe the dollar amount of a physical damage claim paid by the policyholder?A. Coinsurance clause.

Reika [66]

Answer:

C. Deductible.

Explanation:

Variable universal life insurance is insurance that provides permanent insurance coverage as whole life does; however the policyholder, not the insurance company, takes on the investment risk.

A Variable universal life insurance is a type of permanent life insurance policy which avails the holder the opportunity of investing the cash component of the plan (policy) for a much greater returns and as such the investment risk associated with the policy lies completely on the policy holder and not the insurance company.

Additionally, a group life insurance policy can be defined as a single contract plan that covers a group of people by providing life insurance coverage. An employer may opt for a group life insurance policy which would cover the lives of his or her employees.

Deductible is the term used to describe the dollar amount of a physical damage claim paid by the policyholder.

5 0

3 years ago