Which will you likely have to provide on college applications?

An important application of interest involves amortized loans. Some common types of amortized loans are automobile loans, home m

Luda [366]

Answer:

a)Annual Repayment Installment:$2,812.1

b)

Amount to be applied to interest:$1040

Amount to be applied to principal: $1772.10

Explanation:

The annual payment which will be used to offset the loan is computed as

follows:

Annual Installment = Loan amount/annuity factor

Annuity factor = (1 - (1+r)^(-n)/r )

= 1- (1+0.08)^(-6)/0.08)

= 4.6228

Annual Repayment Installment

= 13,000/4.6228

= $2,812.1

b) Amount of first payment to be applied to Interest and principal :

Amount to be applied to interest:

Interest due in year 1 = 8% × $13,000

= $1040

Amount to be applied to principal:

= $2,812.1-1040

= $1772.10

Annual Repayment Installment:$2,812.1

Amount to be applied to interest:$1040

Amount to be applied to principal: $1772.10

7 0

3 years ago

A company began a new development project in 2017. The project reached technological feasibility on June 30, 2018, and was avail

o-na [289]

Answer:

$818,935

Explanation:

Percentage of-revenue method:

$4,000,000

($4,000,000 + 6,500,000) = $10,500,000

Hence;

$4,000,000/$10,500,000

= 38.09 %

Amortization = 38.09% ×$2,150,000

= $818,935

Therefore the amortization of the software development costs would be $818,935

8 0

4 years ago

1

avanturin [10]

Answer:

80 (mark)only answer this

7 0

3 years ago

The Blooming Flower Co. has earnings of $3.68 per share. a. If the benchmark PE for the company is 18, how much will you pay for

Naddik [55]

Answer:

a) $66.24

b) $77.28

Explanation:

The price to earnings ratio (PE ratio) is a valuation used by investors to determine if a stock is overvalued or undervalued.

Payment for stock is the product of Benchmark PR ratio and earnings per share.

Given that the earnings per share is $3.68 per share

a) If the benchmark PE for the company is 18

Payment for stock = Benchmark PR ratio × earnings per share = 18 × $3.68 per share = $66.24

a) If the benchmark PE for the company is 21

Payment for stock = Benchmark PR ratio × earnings per share = 21 × $3.68 per share = $77.28

5 0

3 years ago

Manufacturing overhead is _______________if actual manufacturing overhead costs for a period are greater than the amount of manu

nadya68 [22]

Answer:

overapplied

Explanation:

When we say that manufacturing costs were overapplied, it means that at the beginning of the production process the estimated costs were too high. In other words, the budget considered that it would cost more money to produce the goods.

In this case, overhead costs tend to be overestimated and then overapplied because they rely on past data and efficiency can improve, which lowers costs; or the total production output can be lower than estimated, therefore the company incurred in less costs.

Depending on the cause of the actual lower costs it can be good or bad. If the costs were lower due to improved efficiency, then it is very good. But if the costs were lower due to a lower output, then that is not good.

3 0

4 years ago