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Alborosie
3 years ago
12

You are taking a $6,226 loan. You will pay it back in four equal amounts, paid every year, with the first payment occurs at the

end of year 5. So the first payment is 5 periods from now. Even though you did not make payments during that time interest still accrues. The annual interest rate is 11%. Calculate the amount of each annual payment to pay off the loan 4 years after you start paying it back.
Business
1 answer:
Pavlova-9 [17]3 years ago
4 0

Answer:

annual payment = $2,362.88

Explanation:

we must first calculate the future value of the loan at the end of year 4 = $6,226 x (1 + 11%)⁴ = $9,451.51

using the present value of an annuity formula we can determine the annual payment:

annual payment = present value of an annuity / PV annuity factor

  • present value of an annuity = $9,451.51
  • PV annuity factor 11%, 4 periods = 3.1024

annual payment = $9,451.51 / 3.1024 = $2,362.88

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The top management team at Sierra Infusion is concerned about the declining performance of firms in their industry. The team mem
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Answer:

C. increased diversification of Sierra Infusion.

Explanation:

The top management team at Sierra Infusion is concerned about the declining performance of firms in their industry. The team members are becoming concerned about the security of their jobs at Sierra Infusion. At a meeting over dinner, the top management team agrees to go to the Board of Directors with a proposal for increased diversification of Sierra Infusion.

4 0
3 years ago
Polaco Corporation makes a product that has the following direct labor standards: Standard direct labor-hours 0.4 hours per unit
SOVA2 [1]

The labor efficiency variance for May for Polaco Corporation is <u>$4,320 Favorable</u>.

<h3>What is the labor efficiency variance?</h3>

The labor efficiency variance shows the difference between the actual direct labor hours worked and budgeted direct labor hours,

The labor efficiency variance is computed as the Standard hours allowed for production (SH) – actual hours taken (AH) × standard rate.

<h3>Data and Calculations:</h3>

Standard direct labor-hours per unit = 0.4 hours

Standard direct labor rate = $24 per hour

Production in May = 8,500 units

Actual hours used = 3,220 hours

Standard hours allowed = 3,400 hours (8,500 x 0.4)

Labor efficiency variance = $4,320 (3,400 - 3,220 x $24)

Thus, the labor efficiency variance for May for Polaco Corporation is <u>$4,320 Favorable</u>.

Learn more about calculating labor efficiency variance at brainly.com/question/13136127

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7 0
2 years ago
A policy maker is unsure of the true marginal damages associated with a good, but they know that the marginal externality is con
katovenus [111]

Answer: True

Explanation:

Marginal externality is constant. However, it may not be calculated with accuracy. Hence, there's need for estimates at reasonable levels.

Hence, the policymaker's estimate of $35/ unit is reasonable and within the acceptable range of between $10 and $50/unit. Also, the tax charge raises social welfare compared to no tax at all.

6 0
3 years ago
Some federal grants, such as categorical grants, ____________, while others, such as block grants, ____________.
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Fund only individual citizens; fund only projects for states and localities
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3 years ago
What is the cash flow equation?
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Cash flow=net income+non-cash expenses-increase in working capital.
4 0
3 years ago
Read 2 more answers
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