1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
konstantin123 [22]
3 years ago
15

Henry wants to avoid interest capitalization on his $7,800 unsubsidized Stafford loan. Henry will graduate in four years, and th

e loan has a duration of ten years. The loan has an interest rate of 5. 6%, compounded monthly. How much must Henry pay every month to avoid interest capitalization? a. $14. 56 b. $43. 68 c. $36. 40 d. $31. 20.
Business
1 answer:
Zinaida [17]3 years ago
6 0

The correct statement is that Henry must pay around $48.68 each month to avoid interest capitalization on his unsubsidized Stafford loan of $7800. So, the correct option is B.

The calculation will be done by calculating the amount of interest and dividing such values by the number of months over the period of repayment.

<h3>Calculation of Interest Capitalization </h3>

  • The annuity of education loan will be,

  • \rm Annuity= 7800(1+ \dfrac{0.056}{12})^1^2^x^1^0\\\\\rm Annuity= \$13637.47

  • The interest over such calculation is approximately $5837.47 and hence the payments to be made so that the interest does not capitalize will be,

  • \rm Monthly\ Payments = \dfrac{5837}{120}\\\\\rm Monthly\ Payments = 48.68

Hence, the correct option is B that the monthly payments of $48.68 is to be done to avoid interest capitalization.

Learn more about interest capitalization here:

brainly.com/question/417585

You might be interested in
A project that will last for 12 years is expected to have equal annual cash flows of $104,500. If the required return is 8.2 per
Hoochie [10]

Answer:

$779,424.31

Explanation:

To determine the maximum initial investment would make the project acceptable, we have to find the present value of the cash flows.

Present value is the sum of discounted cash flows.

Cash flow each year from year 1 to 12 = $104,500

I = 8.2%

Present value = $779,424.31 

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

6 0
3 years ago
Characteristics of natural resources​
mamaluj [8]

Explanation:

the characteristics are as follows:-

1. Natural resources are useful, profitable and beneficial .

2. Natural resources have limited availability.

3. They are potential for depletion or consumption.

4. Natural resources are non-renewable sources in nature.

6 0
3 years ago
Will the financial statements of a company always differ when different choices at the start of the accounting period are made r
german

Answer:

Will the financial statements of a company always differ when different choices at the start of the accounting period are made regarding the​ denominator-level capacity​ concept?

A. No. It depends on how a company handles the​ production-volume variance in the​ end-of-period financial statements. For​ example, if the adjusted​ allocation-rate approach is​ used, each​ denominator-level capacity concept will give the same financial statement numbers at​ year-end.

Explanation:

Level capacity strategy

The organisation manufactures or produces at a constant rate of output ignoring any changes or fluctuations in customer demand levels. This often means stockpiling or higher holdings of inventory when customer demand levels fall

4 0
3 years ago
What's the u.s national debt?
otez555 [7]
America's national debt is the amount that is due to the federal government of America. The portion of the public debt is the price of the dominant Treasury securities at a part of time that has been announced by the Treasury and also with other federal government agencies.
3 0
3 years ago
Companies communicate information about their business activities primarily through.
jonny [76]

Firms are known to have financial statements. Companies communicate information about their business activities primarily through  financial statements.

<h3>What are Financial statements?</h3>

This is simply known as the written records that tells us the business activities and the financial performance of a specific firm.

Financial statements are known to be audited by government agencies, accountants, firms, etc. to known its accuracy etc.

The order of financial statements are:

  • Income statement
  • Cash flow statement
  • Statement of changes in equity
  • Balance sheet, etc.

Learn more about financial statements from

brainly.com/question/26187077

8 0
2 years ago
Other questions:
  • The most common way that businesses exercise community responsibility is through
    9·1 answer
  • The larger the mpc (marginal propensity to consume), the ______ the income-expenditure multiplier and the ______ the effect of a
    10·1 answer
  • Nutritional Foods reports merchandise inventory at the lower of the cost or market. Prior to releasing its financial statements
    7·1 answer
  • $40.50 discount rate of 20% how much is amount of discount
    15·2 answers
  • 2. Which of the following is not an accurate statement as concerns competing in the markets of foreign countries? A. A multi-cou
    14·1 answer
  • If the Marifield Steel Fabrication Company earned $ 500 comma 000 in net income and paid a cash dividend of $ 300 comma 000 to i
    7·1 answer
  • Which of the following are examples of chemical energy being released or stored?
    8·1 answer
  • Question 2
    11·1 answer
  • The latest video game comes out and costs $60. You put it on your credit card and can’t afford to pay the whole bill all at once
    14·1 answer
  • In the context of the compensation of expatriate managers, a compensation system designed to match the purchasing power in a per
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!