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Dima020 [189]
3 years ago
7

You want to take out a $125,000 mortgage. The interest rate on the mortgage is 5%, and the loan is for 30 years. How much will y

our monthly payments be
Business
1 answer:
Alex787 [66]3 years ago
4 0

Answer: $671.03

Explanation:

The monthly payment will be an annuity because it will be constant. The loan amount will be the present value of the loan.

Periodic interest rate of loan = 5%/12 = 5/12%

Loan period = 30 * 12 months = 360 months

Present value of annuity = Annuity *  ( 1 - ( 1 + rate) ^ -number of periods) / rate

125,000 = Annuity * ( 1 - ( 1 + 5/12%)⁻³⁶⁰) / 5/12%

125,000 = Annuity * 186.2816170

Annuity = 125,000 / 186.2816170

= $671.03

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Riverbed Company sells goods that cost $320,000 to Ricard Company for $407,000 on January 2, 2020. The sales price includes an i
Alecsey [184]

Answer:

a) Journal entries to record the sale on January 2, 2020:

Debit Accounts Receivable with $407,000

Credit Sales Account with $368,500

Credit Deferred Revenue (Installation Fee) with $38,500

Being sales of goods and installation services.

b) Income Statement for 1st Quarter of 2020

Sales  -  $368,500

Installation Fee - $19,250

Total Income - $387,750

less cost of sales - $320,000

Net Income - $67,750

c) The revenue Shaw should recognize in relation to the sale to Ricard is $387,750 (goods and accrued installation fee).  The installation fee to be recognized is for 3 months only.

Explanation:

The installation fee is for 6 months.  Therefore, 3 months' worth of fee will be recognized in the income statement ending on March 31, 2020.

7 0
2 years ago
During 2010, Congress debated the advisability of retaining some or all of the tax cuts signed into law by former President Geor
Zolol [24]

Answer and explanation:

The law of Diminishing Marginal Utility states that the more you consume a good or use a service, the less satisfied you will be with each successive use or consumption. It is an important concept in determining consumer preferences. It assumes consumers are rational and will spend money in a way that maximizes contentment with each subsequent unit without negatively affecting their total enjoyment.

6 0
3 years ago
According to growth accounting studies, investing in research and education Group of answer choices is the best way to achieve g
kobusy [5.1K]

According to growth accounting studies, investing in research and education is the best way to achieve greater technological progress.

<h3 /><h3>What is growth accounting?</h3>

It corresponds to a metric to identify which are the factors that most impact economic growth, also finding the rate of technological progress of a business.

Therefore, the greater investment in research and education, the more effective growth accounting measurements will be for identifying technological progress.

Find out more about growth accounting here:

brainly.com/question/15093997

#SPJ1

4 0
1 year ago
Tubby Toys estimates that its new line of rubber ducks will generate sales of $7 million, operating costs of $4 million, and a d
Pavlova-9 [17]

Answer:

$2,300,000

Explanation:

The formula to compute the operating cash flow is shown below:

= EBIT + Depreciation - Income tax expense

where,  

EBIT = Sales - operating expenses - depreciation expense  

= $7,000,000 - $4,000,000 - $1,000,000

= $2,000,000

And, the income tax expense is

= $2,000,000 × 0.35

= $700,000

So, the value would equal to

= $2,000,000 + $1,000,000 - $700,000

= $2,300,000

We simply applied the above formula

7 0
3 years ago
Klein Cosmetics has a profit margin of 5.0%, a total assets turnover ratio of 1.5 times, a zero debt ratio and therefore an equi
arsen [322]

It is true that this change would probably be a good move, as it would increase the ROE from 7.5% to 13.5%.

<u>Explanation:</u>

Equity multiplier is calculated by dividing the total assets of a company to shareholder’s equity of an organization. If a company has not raised any debt, then such company would be having equity multiplier equal to 1. t is a leverage ratio.

Return on equity is another financial measure to calculate the return. It is calculated by dividing the net income of a company to the shareholder’s equity. It directly shows the amount that a company is earning on its money invested by the equity shareholders.

3 0
2 years ago
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