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Hitman42 [59]
2 years ago
9

A $200,000 loan amortized over 13 years at an interest rate of 10% per year requires payments of $21,215.85 to completely remove

the loan when interest is charged on the unrecovered balance of the principal. If interest is charged on the original principal instead of the unrecovered balance, what is the loan balance after 13 years provided the same $21,215.85 payments are made each year
Business
1 answer:
kvasek [131]2 years ago
3 0

Answer:

Loan amount = $184,193.95

Explanation:

Interest will remain same each year. Interest per year = 200,000*10% = $20,000

Installment                   $21,215.85

Less: Interest               <u>$20,000</u>

Payment to Principal <u>$1,215.85</u>

Total principal repaid in 13 years = $1,215.85 * 13 years = $15,806.05

So, the principal left = $200,000 - $15,806.05 = $184,193.95

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the u.s. department of veterans affairs (va) has undertaken three separate electronic health record system upgrade projects, non
Dovator [93]

The u.s. department of veterans affairs used the waterfall software development approach would likely have benefit  because it offers wide variety to accommodate and collect data.

Software upgradation in an organisation is a bit difficult and managing them individually according to the departments and an integrated software can only accommodate and collect data properly.

The development approach here also signifies a good team of people who can actually apply software development techniques that can easily be used by everyone in the firm.

To learn more about development approach here,

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7 0
10 months ago
A small craft store located in a kiosk expects to generate annual cash flows of $6,800 for the next three years. At the end of t
Dafna11 [192]

Answer:

The monetary value is $24,201.23

Explanation:

Giving the following information:

Cash flows:

Year 1= $6,800

Year 2= 6,800

Year 3= 6,800

Year 4= $15,000.

The discount rate is 15 percent.

We need to discount each cash flow to the present value:

PV= FV/(1+i)^n

Year 1= 6,800/1.15= 5,913.04

Year 2= 6,800/1.15^2= 5,141.78

Year 3= 6,800/1.15^3= 4,471.11

Year 4= 15,000/ 1.15^4= 8,576.30

Total= $24,201.23

6 0
3 years ago
On January 1, 2020, Green Corporation granted 28,000 shares of restricted $13 par value common stock to its CFO. The market pric
EleoNora [17]

The correct answer is $588000

<u>Explanation:</u>

As the restricted shares provided to the employees are recorded at the market value. The restricted shares have a vesting period which means the employee cannot sell the stock right away, for example the CFO might have to wait for 2 years before being able to sell the stock. Generally, the company will debit deferred revenue expense with the amount of $588000 currently and write off over the vesting period.

Amount of compensation expense that needs ot be recorded by Green on the december 31,2020 is $588000.

( 28000 shares multiply with $21 per share).

6 0
3 years ago
You purchased an annual interest coupon bond one year ago that had six years remaining to maturity at that time. The coupon inte
Marat540 [252]

Answer:

The correct answer to the following question will be "8%".

Explanation:

The given values are:

Number of years of maturity = 5 years

Interest rate of coupon = 10%

                           = 10%×1000

                           = 100

Yield to maturity, YTM = 8%

As we know,

Price of Bond = PV of Coupons + PV of Per Value

On putting the values in the above formula, we get

⇒                     = \frac{100\times (1-(1+8 \ percent^{-5}))}{8 \ percent} +\frac{1000}{1+8 \ percent^{5}}

⇒                     = 1079.85

After 1 years, we get

Price of Bond = PV of Coupons + PV of Per Value

On putting the values in the above formula, we get

⇒                     = \frac{100\times (1-(1+8 \ percent^{-4}))}{8 \ percent} +\frac{1000}{1+8 \ percent^{4}}

⇒                     = 1066.24

Now,

The total return rate = \frac{(1066.24-1079.85+100)}{1079.85}

                                   = \frac{86.39}{1079.85}

                                   = 8 \ percent

7 0
3 years ago
A decrease in net taxes (select one):
icang [17]

Answer:

C, Raises aggregate expenditure by raising liable income, thereby increasing consumption.

Explanation:

Tax is a very important financial tool of any governmet to ensure its smooth running.

Tax can either be increased or decreased and each of these acts have their effects on the the counrty and on its people. For the purpose of this question, i will be sticking to tax decrease.

Tax decrease as the name implies is the reduction of taxes paid by individuals to the government from their taxable incomes.

When tax is reduced, there is a little more money for the people to spend and as such this affects the demand, consumption (of goods) as well as the gross domestic profit; GDP, of the country.

When the people have more money to spend, there is an increase in things they buy, wear, do, etc and so production in that country becomes high.

Tax decrease is most effective in a situations where there is high level of unemployment and slow paced economies.

cheers.

5 0
3 years ago
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