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nevsk [136]
2 years ago
14

Mr. Jagger is purchasing a $3,000,000 home by borrowing 80% of the purchase price. His loan terms are: 15 years amortization, mo

nthly payments, 5.00% annual interest rate. The monthly payment will be: a. $18,979.05 b. $18,599.47 c. $18,409.68 d. $19,358.63 3.488 points
Business
1 answer:
lions [1.4K]2 years ago
5 0

Answer:

Monthly payment= $18,979.05

Explanation:

Giving the following information:

Loan (PV)= 3,000,000*0.8= $2,400,000

Monthly interest rate (i)= 0.05/12= 0.00416667

Number of periods (n)= 15*12= 180 months

<u>To calculate the monthly payment, we need to use the following formula:</u>

Monthly payment= (PV*i) / [1 - (1+i)^(-n)]

Monthly payment= (2,400,000*0.00416667) / [1 - (1.00416667^-180)]

Monthly payment= $18,979.05

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Two weeks before his performance appraisal, John successfully resolved a service complaint involving one of the company’s most i
Sergeu [11.5K]

Answer:

The correct answer is Recency error.

Explanation:

Focus on the most recent performance evaluated: The evaluators can be guided by the most recent actions and / or attitudes, whether negative or positive, without considering the history of the collaborators. This error can give an unfair result and nothing representative.

A recency error is an inaccuracy or failure in the performance evaluation or job interview, caused by the dependence of the evaluator or the interviewer on the most recent events of the employee or applicant behavior.

5 0
3 years ago
After reading the new account insert in his monthly​ statement, Tony Mercadante determined that the FDIC considers a joint accou
yarga [219]

Answer: Please refer to Explanation

Explanation:

According to the Federal Deposit Insurance Corporation, the limit to the amount a person can be insured for is, $250,000 per depositor, per insured bank.

That means that Tony's account at a balance of $120,712 is covered completely as it is well below $250,000.

Their Joint account is also completely covered at $60,099.

Cynthia however does not have complete coverage as her bank account exceeds to the coverage limit by $3,629 which will not be covered.

Should be noted that should she transfer this excess to the joint account then she should be fully covered.

5 0
3 years ago
XYZ Co. has forecasted June sales of 400 units and July sales of 700 units. The company maintains ending inventory equal to 125%
Gnesinka [82]

Answer:

775 units

Explanation:

By forecast,

June sales = 400 units

July sales = 700 units

if ending inventory equal to 125% of next month's sales

Then June's ending inventory = 125% × 700

                                                  = 875 units

May's ending inventory = 125% × 400

                                       = 500 units

Opening inventory + production - sales = closing inventory

Using the formula above, where p = production

500 + p - 400 = 875

p = 875 - 100

p = 775

Production required for June is 775 units.

7 0
2 years ago
Milano Pizza Club owns three identical restaurants popular for their specialty pizzas. Each restaurant has a debt–equity ratio o
algol13

Answer:

A. $516,000

B. $696,600

Explanation:

A. Calculation to to determine the value of the Company's equity

First step is to calculate the Net income

Sales1,540,000

Less: Cost of goods sold790,000

Less: General and administrative costs525,000

Less: Interest expenses53,000

Income before corporate tax 172,000

Less: Corporate tax 40% 68,800

(40%*172,000)

Net income103,200

(172,000-68,800)

Now let determine the value of the Company's equity using this formula

Value of the Company's equity

= Net income/ cost of the firm’s levered equity

Let plug in the formula

Value of the Company's equity = $103,200/0.20

Value of the Company's equity = $516,000

Therefore The Value of the Company's equity is $516,000

B. Calculation to determine the total value of Company equity

First step is to calculate the Debt

Debt equity Ratio = 0.35

Debt/Equity = 0.35

Debt/ $516,000 = 0.35

Debt = $516,000 * 0.35

Debt =$180,600

Now let determine The Company’s value using this formula

Company’s Total value = Equity + Debt

Let plug in the formula

Company’s Total value = $516,000 + $180,600

Company’s Total value = $696,600

Therefore the total value of Company equity is $696,600

7 0
2 years ago
What are the uses of shares in raising capital for an entreprise
Alja [10]

Firms can raise the financial capital they need to pay for such projects in four main ways: (1) from early-stage investors; (2) by reinvesting profits; (3) by borrowing through banks or bonds; and (4) by selling stock. When owners of a business choose sources of financial capital, they also choose how to pay for them.

ummmm I ain't sure if this is the answer you need please read properly before you write

8 0
2 years ago
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