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rewona [7]
2 years ago
14

David Davis plans to save $2,735 every year for the next eight years, starting today. At the end of eight years, David will turn

30 years old and plans to use his savings toward the down payment on a house. If his investment in a mutual fund will earn him 12.0 percent annually, how much will he have saved in eight years when he buys his house
Business
1 answer:
Anna71 [15]2 years ago
8 0

Answer:

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Explanation:

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A few years back, Dave and Jana bought a new home. They borrowed $230,415 at an annual fixed rate of 5.49% (15-year term) with m
Illusion [34]

A few years back, Dave and Jana bought a new home. They borrowed $230,415 at an annual fixed rate of 5.49% (15-year term) with monthly payments of $1,881.46. They just made their twenty-fifth payment and the current balance on the loan is $208,555.87. Interest rates are at an all-time low, and Dave and Jana are thinking of refinancing to a new 15-year fixed loan. Their bank has made the following offer: 15-year term, 3.0%, plus out-of-pocket costs of $2,937. The out-of-pocket costs must be paid in full at the time of refinancing. Build a spreadsheet model to evaluate this offer. The Excel function: New monthly payment PMT(3%/12, 15*12, 208555.87, 0, 0) = $1,440.25 Now, we need find the additional amount.

<h3>What is Interest rates?</h3>

The amount of interest due each period expressed as a percentage of the amount lent, deposited, or borrowed is known as an interest rate (called the principal sum). The total interest on a loaned or borrowed sum is determined by the principal amount, the interest rate, the frequency of compounding, and the period of time the loan, deposit, or borrowing took place.

The interest rate over a year is known as the annual interest rate. Other interest rates are applicable over shorter time frames, such a day or a month, but they are typically annualized.

According to one definition, the interest rate "is an indication of the preference for a dollar of present [income] over a dollar of future income."

To learn more about interest rate from the given link:

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7 0
2 years ago
Jiffy Co. expects to pay a dividend of $3.00 per share in one year. The current price of Jiffy common stock is $60 per share. Wh
STALIN [3.7K]

Answer:

the cost of the internal common equity is 14%

Explanation:

The computation of the cost of internal common equity is shown below;

Stock Price = Dividend per share ÷ (required rate of return - growth rate)

$60 = $3 ÷ (required rate of return - 0.09)

60 required return - $5.4 = $3

60 required return = $8.4

So, the required return is

= 8.4 ÷ 60

= 14%

Hence, the cost of the internal common equity is 14%

5 0
3 years ago
Which of the following terms is also known as the bottom line?
cricket20 [7]

Answer:

your answer will be A . Loss

3 0
3 years ago
At the beginning of the current period, Kingbird Corp. had balances in Accounts Receivable of $191,500 and in Allowance for Doub
taurus [48]

Answer:

Journal entries

Explanation:

The journal entries are as follows

a. Account receivable $733,600

               To sales revenue $733,600

(Being the sales is recorded)

Cash Dr $767,780

         To Account receivable $767,780

(Being the collection is recorded)

b. Allowance for doubtful debts $7,149

            To Account receivable $7,149

(Being the written off amount is recorded)

c. Account receivable $2,957

            To  Allowance for doubtful debts $2,957

(Being the previously written off as uncollectible is recorded)

Cash Dr $2,957

        To Account receivable $2,957

(Being the recovery is recorded)

d. Bad debt expense $19,742

         To Allowance for doubtful debts $19,742

(Being the bad debt expense is recorded)

The computation of the bad debt expense is shown below:

= Opening balance of Allowance for Doubtful Accounts - written off amount + recovery amount - uncollectible amount

= $9,890 - $7,149 + $2,957 - $25,440

= $19,742

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4 years ago
For firms engaged in international lending and borrowing, ____________________ can have an enormous effect on profits.
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Swings in exchange rates
5 0
3 years ago
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