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sergejj [24]
2 years ago
6

Bianca took out a $2,600 unsubsidized Stafford loan. She will be attending school for four years, and she wishes to have the loa

n paid off five years before its normal ten-year duration is finished. The loan has an interest rate of 6. 2%, compounded monthly. How much will she have to pay monthly to avoid interest capitalization? a. $12. 40 b. $19. 29 c. $13. 43 d. $17. 36.
Business
1 answer:
Gwar [14]2 years ago
3 0

Interest capitalization is defined as the unpaid interest when added to the principal amount of the loan. It increases the overall cost of the loan.

Bianca will have to pay $13.43 monthly to avoid interest capitalization.

Given that:

Principal value of loan = $2600

Maturity Time = 10 years = 120 months  

Interest rate = 6.2% = 0.062

Now, to find the amount of payment by using the formula:

\rm Payment&=\rm \dfrac{Rate\times Principal}{1-(1+rate)^{time}}\\\\\\\rm Payment&=\rm\dfrac{0.062 \times 2600}{1-(1+rate)^{120}}\\\\\rm Payment &= \rm \161.32

Total payment that is to be paid in 1 year:

\rm Monthly\; Payment &=\rm\dfrac{161.32}{12}&= \$13.43

Thus, the payment that Bianca has to pay is  $13.43.

To know more about interest capitalization, refer to the following link:

brainly.com/question/417585

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In a planning context, A. open facts are preferred to closed facts. B. None of the choices are correct. C. new facts are preferr
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Answer:

The correct answer is letter "A": open facts are preferred to closed facts.

Explanation:

While planning a project, open facts are those that have not happened yet in contrast to closed facts that are those that already occurred. Managers prefer to start from the bottom while planning since it is better to explore the new path with a "clean sheet" than being subject to events that already took place and condition the course of a project.

<em>Open facts, then, are more preferred than closed facts.</em>

5 0
3 years ago
Mister Jones was selling his house. The asking price was $220,000, and Jones decided he would take no less than $200,000. After
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Answer:

D) not able to be calculated from the information given.

Explanation:

Consumer surplus is the difference between willingness to pay of a consumer and the price actually paid for a good or service.

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I hope my answer helps you.

5 0
3 years ago
Pearsall Company's defined benefit pension plan had a PBO of $268,000 on January 1, 2021. During 2021, pension benefits paid wer
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The amount of the PBO at December 31, 2021, was $333800

<u>Explanation:</u>

The amount of PBO at december 31st is calculated as follows:

PBO on jan 1, 2021 = $268000

add: Service cost = $86000

add: interest = $26800

less: pension benefits that have been paid = $47000

now, we have to solve the above calculation

we get, PBO at dev 31 = $333800

Note: interest is calculated by multiplying the PBO amount on Jan 1,2021 with the rate of interest given.

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3 0
3 years ago
The January 28, 2017 (fiscal year 2016) financial statements of Caleres, Inc. reported the following information (in thousands):
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A. 136.2 days

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And, the cost of good sold is $1,517,397

Now put these values to the above formula  

So, the answer would be equal to  

= $1,517,397 ÷  $566,254.50

= 2.67 times

Now, Days in inventory  = Total number of days in a year ÷ inventory turnover ratio

= 365 days ÷ 2.67 times

= 136.70 days approx

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3 years ago
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