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ratelena [41]
3 years ago
11

You have graduated from college but unfortunately have $39,000 in outstanding loans. The loans require payments of $3,435 per ye

ar, which covers interest and principal repayment (that is, the loan has the same basic features as a mortgage). If the interest rate is 4 percent, how long will it take you to repay the debt
Business
1 answer:
vladimir1956 [14]3 years ago
3 0

Answer:

15.44 years

Explanation:

Using both excel rate function and financial calculator, the time taken to repay the debt can be computed thus:

Excel rate function:

=nper(rate,pmt,-pv,fv)

rate= interest rate=4%

pmt=yearly payment=c

pv=loan oustanding=-39000

fv=the balance after all payments should be zero=0

=nper(4%,3435,-39000,0)= 15.44 years

Financial calculate

PMT= 3435

RATE=4

PV=-39000

FV=0

CPT N=15.44 years

This means a payment of $3,435 per year for 15 years  and $ 1,511.40  ($3,435*0.44) in the sixteenth year

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Last week, a gift shop’s employees heard their longtime store manager announce that she is leaving. Now they’ve read an announce
MissTica

Answer: Uncertainty

Explanation: In simple words, uncertainty refers to a situation under which an individual or an entity is not sure about their belief or decision regarding a particular subject matter.

In the given case, the employees of the store are unknown to the reality of how the new manager will be.

Hence from the above we can conclude that the above case demonstrates uncertainty.

               

6 0
2 years ago
Which political system favors an economic structure in which the means of production are owned and monitored by the government?
Snezhnost [94]
 A communism political system favors an economic structure in which means of production are owned and monitored by the government. A communist economy means that the government will control the majority of factors centered around production. They will determine where resources should be used and what type of goods and services will be produced.<span> </span>
7 0
3 years ago
Read 2 more answers
Fire insurance policies include deductibles:
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1. A im not to sure for this one.... :/ 
2. A  Signaling ; reputation 
5 0
3 years ago
Sheldon just joined a new gym and signed up for a one-year membership. Membership fees can be paid in 12 monthly payments of $60
mestny [16]

Answer: $688.17

Explanation:

He has to pay $60 every month on the first day or a lump sum.

The lump sum will be the present value of monthly payments.

This is a stable Cashflow and so is an Annuity and because it is done on the first day of the month it is an Annuity due.

Calculating present value of annuity due is;

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

= 60 + 60 (( 1 - ( 1 + 0.833%)-¹¹) / 0.833%) )

=60 + 60* 10.4695

= $688.17

Note: interest rate must be divided into 12 to make it monthly rate.

=10%/12

= 0.833%

4 0
3 years ago
Exercise 10-2 Recording bond issuance at par, interest payments, and bond maturity LO P1 Brussels Enterprises issues bonds at pa
Elden [556K]

Answer:

June 30 Bond Interest Expense Dr $81000

Cash Cr $81000

(6%/2*$2,700,000)

December 31 Bond Interest Expense Dr $81000

Cash Cr $81000

Bonds Payable Dr $2,700,000

Cash Cr $2,700,000

Explanation:

Record the entry for the first semiannual interest payment and the second semiannual interest payment.

June 30 Bond Interest Expense Dr $81000

Cash Cr $81000

(6%/2*$2,700,000)

December 31 Bond Interest Expense Dr $81000

Cash Cr $81000

Record the entry for the maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded).

Bonds Payable Dr $2,700,000

Cash Cr $2,700,000

3 0
2 years ago
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