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Andreas93 [3]
2 years ago
15

On January 1, 2018, Allgood Company purchased equipment and signed a six-year mortgagenote for $186,000 at 15%. The note will be

paid in equal annual installments of $49,148, beginningJanuary 1, 2019. Calculate the portion of interest expense paid on the third installment. (Roundyour answer to the nearest whole number.)A) $21,048 B) $164,752 C) $27,900 D) $49,148
Business
1 answer:
Ne4ueva [31]2 years ago
5 0

Answer:

The correct answer is A: interest= $21048

Explanation:

An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term. While each periodic payment is the same amount early in the schedule, the majority of each payment is interest; later in the schedule, the majority of each payment covers the loan's principal.

Each payment is the same ($49,148), but the proportions of interest and capital pay changes. The interest proportion decreases from pay to pay.

Loan= 186000

i= 15%

n= 6 years

First pay:

i=186000*0,15=27900

amortization= 49148-27900=21248

Second pay:

i=(186000-21248)*0,15=24712

amort=49148-24712=24436

Third pay:

i=(164752-24436)*0,15=21048

amort=49148-21048=28100

While payments progress, interest decreases and amortization increases.

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2.) Which of the following is true? A. The convenience yield is always positive or zero. B. The convenience yield is always posi
charle [14.2K]

Answer:

The correct answer is letter "A": The convenience yield is always positive or zero.

Explanation:

The convenience yield reflects the premium of possessing an asset instead of one of its derivates or contracts. This situation arises in front of inverted markets, where holding the asset itself may bring more profits than purchasing a derivate of the same asset.

<em>The convenience yield tends to be positive or zero because the prices of assets cannot fall below zero. In other words, they are not negative.</em>

7 0
3 years ago
Why do​ long-run elasticities of demand differ from​ short-run elasticities? ​Long-run elasticities of demand differ from​ short
Ne4ueva [31]

Answer:

The correct answer is option D.

Explanation:

Long-run elasticities of demand differ from short-run elasticity. In the short period is more inelastic. This is because people take time to adjust their consumption habits. So if the time period people have to adjust to the price change is long, then the demand will be elastic.  

Durable goods can be used for a relatively long time. So they will have a less elastic demand.

3 0
3 years ago
Read 2 more answers
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7 0
3 years ago
Fashion house uses the retail method to estimate ending inventory in his monthly financial statements the following information
IgorC [24]
If we used the retail method to estimate the ending inventory first we get the given of the problem that can be used in solving.
 Given
  Sales - 200,000
  Goods available for sale - 261,000 (cost) & 450,000 (retail) 

First, we need to get the cost of retail ratio. the formula is 
 Cost to Retail ratio= Cost/ Retail
           261,000
CRR= -------------   =   0.58
           450,000

Next is to get the ending inventory by following this steps
                                                              Cost             Retail
Cost of Goods Available for Sale    $261,000        $450,000
- Sales                                                                        $200,000
                                                                                  ------------------
Ending Inventory                                                        $250,000
x Cost to Retail Ratio                                                           .58
                                                                                  ------------------
Ending Inventory                                                       $145,000

So, the estimated ending inventory for the month of July is $145,000. 
4 0
3 years ago
Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose toda
polet [3.4K]

Answer:

1) The yield to maturity is required rate of return on a bond expressed as a nominal annual interest rate. For noncallable bonds, the yield to maturity and required rate of returns are interchangeable terms

2) Unlike YTM and required return, the coupon rate used as the interest rate in bond cash flow valuation, but is fixed percentage of par over the life of the bond used to set the coupon payment amount.

3) The coupon rate is constant at 10%. The YTM is 8%.

Explanation:

5 0
3 years ago
Read 2 more answers
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