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kobusy [5.1K]
2 years ago
8

You are taking a $5000 loan. You will pay it back in four equal amounts, paid every 6 months starting 5 years from now. The inte

rest rate is 12% compounded semiannually. Calculate: The effective interest rate The amount of each semiannual payment The total interest paid
Business
1 answer:
mr Goodwill [35]2 years ago
4 0

Answer:

Following are the solution to the given point:

Explanation:

Calculating the value of the effective interest rate:

Formula:

\text{Effective interest rate} =\frac{\text{annual nominal rate of interest}}{\text{compound year}}

                                  =\frac{12}{2} \\\\ =6\%

Calculating the value of Effective annual rate of interest:

=(1+ \text{The effective rate})^{\text{(compound number )}} -1

=(1+0.06)^2 -1\\\\=(1.06)^2 -1\\\\=1.1236-1\\\\=0.1236\\\\=12.36 \%

Calculating the Amount in each semiannual payment:

= 5000 \times (\frac{F}{P}, 6\% ,9) \times (\frac{A}{P}, 6\%,4)\\\\= 5000 \times  1.689479 \times  0.288591\\\\= 2437.85

Calculating the value of the total interest paid:

= 2437.85 \times 4 - 5000\\\\= 9751.40-5000\\\\ = 4751.40

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The two categories of cost comprising conversion costs are
Dmitry [639]

Answer:

b. direct labor and factory overhead

Explanation:

The conversion cost is that convert which is used to convert the raw material to the finished goods inventory. It is a combination of the direct labor cost and the factory overhead or manufacture overhead cost.

It can be fixed or variable marinating costs only. It does not include direct material cost

It is computed by taking a difference of production cost and raw material cost

Hence option b is correct

7 0
3 years ago
Which agency is responsible for approving states' special education plans and releasing idea funds accordingly?
tatiyna
The Office of Special Education and Rehabilitative Services is the agency responsible for approving a state's special education plan and releasing the IDEA funds accordingly.  These offices also help schools understand the services and responsibilities. These services help with those who have a learning disability or need specialized attention/help in school. 
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3 years ago
8. If the unemployment rate is below its natural rate, then ________. Group of answer choices output is above its potential leve
fgiga [73]

Answer:

Output is below its potential level.

4 0
3 years ago
Barton Industries has operating income for the year of $3,700,000 and a 25% tax rate. Its total invested capital is $18,000,000
rusak2 [61]

Answer:

1,875,000 Economic Value Added

Explanation:

Net Operating Profit After Taxes  - Invested Capital x Weighted Average Cost of Capital = Economic Value added

This represent the return on the shareholders after their investment return is paid. It is the value generated from the investent resources.

3,700,000 x ( 1- 0.25 ) = 2,775,000 Operating Income after taxes

18,000,000 x 5% =         (900,000)  Required Return

                                        1,875,000 Economic Value Added

4 0
3 years ago
Direct Labor Variances La Barte Company manufactures commuter bicycles from recycled materials. The following data for July of t
Alisiya [41]

Answer:

Explanation:

a. The computation of the labor rate variance is shown below:  

= Actual Hours × (Actual rate - standard rate)  

= 5,050 × ($16.80 per hour - $16 per hour)  

= 5,050 × $0.80 per hour

= $4,040 unfavorable

b. The computation of the labor time variance is shown below:  

= Standard Rate × (Actual hours - Standard hours)  

= $16 per hour × (5,050 hours - 1,000 × 5.4 hours)  

= $16 per hour × -350 hours

= -$5,600 favorable

c. The computation of the total labor variance is shown below:  

= (Actual hours × Actual rate) - (Standard hours × standard rate)

= (5,050 hours × $16.80 per hour) - (1,000 bicycles × 5.4 hours × $16 per hour)

= $84,840 - $86,400

= -$1,560 favorable

7 0
3 years ago
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