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UkoKoshka [18]
3 years ago
14

A commercial bank will loan you $20,000 for four years to buy a car. The loan must be repaid in 48 equal monthly payments. The a

nnual interest rate on the loan is 6.00 percent of the unpaid balance. How large are the monthly payments?
Business
1 answer:
Lisa [10]3 years ago
8 0

Answer:

Monthly payment = $469.701

Explanation:

<em>Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.  </em>

The monthly equal installment is calculated as follows:  

Monthly equal installment= Loan amount/Monthly annuity factor  

Loan amount = 20,000

Monthly annuity factor  =

=( 1-(1+r)^(-n))/r  

r- Monthly interest rate (r)  

= 6/12= 0.5%  

n- Number of months ( n) = 20 × 4 = 48

Annuity factor  

= ( 1- (1.005)^(-48)/0.005= 42.5803

Monthly installment= 20,000 /42.5803  = $469.701

Monthly installment = $469.701

Monthly payment = $469.701

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A company purchased factory equipment on April 1, 2021 for $175000. It is estimated that the equipment will have a $25000 salvag
bija089 [108]

Answer:

b. $11250

Explanation:

Capitalized Cost of Equipment = $175,000

Life of Assets = 10 years

Residual value = $25,000

Depreciable value = Cost - Salvage value

Depreciable value = $175,000 - $25,000

Depreciable value = $150,000

Depreciation per year = Depreciable value / Life of assets

Depreciation per year = $150,000/10 years

Depreciation per year = $15,000

Depreciation from April to December 2021 = $15,000*9/12

Depreciation from April to December 2021 = $11,250

3 0
2 years ago
A bond had a price of $946.72 at the beginning of the year and a price of $983.73 at the end of the year. The bond's par value i
umka21 [38]

Answer:

it can will be something 11.04%

8 0
2 years ago
The business case for an ethical strategyA) relates to the company's business model and business-level strategy.B) must be artic
UkoKoshka [18]

Answer:

The correct answer is option D.

Explanation:

The ethical principles in business are not much different from the ethical principle in general. They are not separately based on some other special rules to judge business conduct. They are judged from the society's perspective of right and wrong.

There are two schools of ethical principles, namely, ethical universalism and ethical relativism. Universalism believe that the concept of right and wrong are universal. While, on the other hand, relativism school believes that they vary according to local customs.

Though universal ethical principles from different societies form a kind of informal contract that all individuals and organizations have to follow.

Failure to observe these principles not only corrode company's reputation but have also other adverse effects and costs involved.

6 0
3 years ago
A partner (owner) who invests money in a business does not take an active role in managing the operation, and is only subject to
Mashutka [201]

Answer:

Limited partner

Explanation:

A limited partner has limited liabilities and doesn't take an active role in managing the operation of the business. A limited partner is also known as a silent partner.

I hope my answer helps you

3 0
3 years ago
JCPenney Company is expected to pay a dividend in year 1 of $1.65, a dividend in year 2 of $1.97, and a dividend in year 3 of $2
arlik [135]

Answer:

c = $71.80.

Explanation:

So, from the question above, it is given that the dividend in the first year = $1.65, the dividend in the second year = $2.54, the dividend for the third year  grows at the rate of 8% and the appropriate required return for the stock = 11%.

The first thing to do here is to determine the terminal value. The terminal value can be calculated as below as;

Terminal value = [ 2.54 × ( 1 + 8/100) ÷ (11/100 - 8/100) ]  = 91.44

The value of the stock today can be calculate as be as:

The value of the stock today = 1.65 / (1 + 11/100 )¹ + 1.97 /  (1 + 11/100)² + 2.54 / (1 + 11/100)³ + 91.44 /  (1 + 11%)³ = $71.80.

Therefore,  stock should be worth $71.80 today.

7 0
3 years ago
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