1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
drek231 [11]
3 years ago
13

Tanner takes out a loan today and repays the loan with eight level annual payments, with the first payment one year from today.

The payments are calculated based on an annual effective interest rate of 4.75%. The principal portion of the fifth payment is 699.68.
Calculate the total amount of interest paid on this loan.
a) 1239
b) 1647
c) 1820
d) 2924
Business
1 answer:
Inessa [10]3 years ago
3 0

Answer:

Total interest = 1239.12

Explanation:

Assume;

Loan amount = P

Annual payment = X

P[1st payment] = X/[1+0475]⁸

P[1st payment] = X/[1.0475]⁸  

P[5th payment] = X/[1+0.0475]⁴

P[5th payment] = X/[1.0475]⁴

P[5th payment] = 699.68

So,

X = 699.68[1.0475]⁴

X = 842.39

P = (842.39/0.0475)(1 – 1/1.0475⁸)

P = 5,500  (Approx)

Total interest = [842.39 x 8] - 5,500

Total interest = 1239.12

You might be interested in
Nicoloss is a store that sells clothes, cosmetics, travel bags, and furniture to final consumers. Customer reviews indicate that
kirill115 [55]

Answer: Department store

Explanation: When an establishment offers products and services to end or final consumers in various product segments or categories, such stores are usually referred to as department stores. The word department means each product offering is separated or segmented with varieties to choose from. In the scenario above, Nicoloss store is composed of departments ranging from Clothing, Cosmetics, travel bags, furniture, which gives shoppers the opportunity to purchase from different categories of products on offer within the walls of a single store.

6 0
3 years ago
Loans requiring periodic payments of interest and principle are referred to as
nikitadnepr [17]
They are referred to as installment notes
5 0
2 years ago
In a perfectly competitive market, firms face no barriers to entry or exit.
ipn [44]
The answer to this question is true.
3 0
3 years ago
Read 2 more answers
During the year, Belyk Paving Co. had sales of $2,384,000. Cost of goods sold, administrative and selling expenses, and deprecia
Zina [86]

Answer:

(a) Income Statement

                                  Belyk Paving Co.

                    Income statement for the year xxxx

Sales                                                      $2,384,000

Cost of goods sold                               $1,441,000

Gross Profit                                            $943,000

Administrative and selling expenses   $436,600

Depreciation expense                           $491,600

Operating Income                                  14,800

Interest expense                                    $216,600

Income before Tax                                ($201,8000)

Tax rate 35%                                          <u> $0             </u>

Net Loss                                                  <u>($201,800)</u>

(b) operating Cash flow

Net Loss                                                       ($201,800)

Add: Non cash Expenses (Depreciation)   <u> $491,600</u>

Cash flow from operating activities            <u> $289,800 </u>

6 0
3 years ago
Under variable costing, if a manager's bonus is tied to operating income, then increasing inventory levels compared to last year
inysia [295]

Answer: not affecting the manager's bonus

Explanation:

Under Variable costing, fixed manufacturing overhead is not charged on inventories produced or not sold for the year which means that regardless of inventory level, the relevant inventory here when it comes to calculating operating profit is the one that was sold.

The manager's bonus will therefore not change as a result of higher inventory levels. Were this absorption costing where fixed overhead was charged to inventory that was not sold, the manager's bonus would increase because the higher inventory level would absorb more of the cost.

7 0
3 years ago
Other questions:
  • Travel is generally divided into which two broad categories?
    7·1 answer
  • Business cycles consists of four phases: expansion, recession, contraction, and recovery. True or false?
    8·1 answer
  • The purpose of sobriety checkpoints that are set up by community and state police is to deter drunk driving and ultimately save
    8·1 answer
  • Consider the following case: Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The stock
    10·1 answer
  • An economic outcome is said to be efficient if the economy is a getting all it can get from the scarce resources it has availabl
    15·1 answer
  • The constitution sets forth specific powers that can be exercised by the national government and provides that the national gove
    6·1 answer
  • A line cook at a restaurant was inspired to become a chef, but he lacked the necessary training. The line cook asked the chef at
    7·1 answer
  • If a firm borrowed money on a six-month bank loan, the firm's working capital immediately after obtaining the loan, relative to
    6·1 answer
  • Learning: Share 2 main things you learned about communications in Module 2.
    14·1 answer
  • Project marvel is a five-year project. The project has a total cash inflow of $350,000. The present value of such inflows is $27
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!