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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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Signal mistakenly produced 1,000 defective cell phones. The phones cost $65 each to produce. A salvage company will buy the defe
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Answer:

It is more profitable to continue to rework the phones and sell them.

Explanation:

Giving the following information:

Signal mistakenly produced 1,000 defective cell phones.

<u>The $65 per phone is a sunk cost. It will remain on both decisions, therefore, we will not take into account to make the decision.</u>

Sell as it is:

Income= 33*1,000= $33,000

Rework:

Costs= 88*1,000= $88,000

Sales= 144*1,000= $144,000

Total gain= $56,000

It is more profitable to continue to rework the phones and sell them.

3 0
3 years ago
Of the following tasks, which one is least likely to be part of an administrative professional job today ?
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There is an old American adage (saying): If you owe the bank a small amount of money, the bank controls you. If you owe the bank
Alekssandra [29.7K]

Answer:

See explanation below for answer.

Explanation:

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As of December 2019, the United States debt to China stood at $1.07 trillion.

This therefore goes to further buttress the point of China being the bank in the case of them lending money to the United States of America.

3 0
3 years ago
Bonds can be issued with detachable warrants. When this occurs, how should the cash received at the issuance be accounted for: M
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Answer:

The proceeds from the bond issue are allocated between the bonds and the warrants on the basis of their relative market values.

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When bonds are issued with detachable warrants, that means there is a  basic amount  of bonds and warrants. Also, each shall be accounted separately.

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(2) Human resource departments are so efficient now-a-days that they are always in searching of exciting talent. They do the head-hunting on the continuous basis, where they hire employees from other organisations, therefore, if you don't treat your employees well, then they will have more chances to switch the organisation and avail the better available chances.

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