A loan is amortized over five years with monthly payments at an annual nominal interest rate of 9% compounded monthly. The first
1 answer:
Answer:
$7,112.73
Explanation:
We can use the financial calcualtor and some formulas or use the easy way and use excel goal seek.
We contruct the table and find the value of the principal cell that makes the principal after 60 payment zero with payment of $1,000 decreasing 2% each month
the following is made:
A1 period
1 to 60
B1 couta
1,000 x (power(0.98;period cell)
C1 interest
previous principal x 9/1200
D1 amortization B1 - C1 that is installment less interest
E1 principal: previous principal - current period amortization
--loan schedule is attached to provide more help--
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Answer:
a. 300
d. 200
Explanation:
EOQ =
2 * 7500 * 30 / 0.5
EOQ = 948 units
When price is $48 per unit
EOQ = 968 units
Total cost = Holding cost + ordering cost + purchase cost
When the order is for 500 price is $48
Total cost = $2,400 + $30 + $24,000 = $26,430
When the order is for 300 price is $50
Total cost = $1,500 + $30 + $15,000 = $16,530
When the order is for 306 price is $50
Total cost = $1,530 + $30 + $15,300 = $16,860
When the order is for 200 price is $50
Total cost = $1,000 + $30 + $10,000 = $11,030
The best two possible order quantities are 200 and 300 which results in minimum total cost.