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Brums [2.3K]
3 years ago
7

Christy needs $25,000 to purchase a new car. she borrows this amount at an interest rate of 8% for 5 years. what is the amount o

f interest that will be paid?
Business
1 answer:
gulaghasi [49]3 years ago
8 0
Principle is the amount borrowed or invested in or from a bank or a financial institution. In this case the principle is $ 25,000, interest rate is 8% and the interest period is 5 years.
Thus amount to be paid after a period of 5 years will be 25,000 ( 1 +0.08)∧5
= 25,000 (1.08)∧5
=25,000 × 1.4693 
 =$36,733.20
To calculate the interest we subtract the principle sum from the Amount to be paid. 
= $36733.20- $25000=11733.20
Therefore, interest =$ 11733.20
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A firm has an equity multiplier of 1.57, an unlevered cost of equity of 14 percent, a levered cost of equity of 15.6 percent, an
vagabundo [1.1K]

Answer:

10.45 %

Explanation:

Calculation for What is the cost of debt

Using this formula

Levered cost of equity=Unlevered cost of equity+Equity multiplier(1-Tax rate)(Unlevered cost of equity-Cost of debt)

Let plug in the formula

.156 = .14 + .57(1 −.21)(.14 − Cost of debt )

.156 = .14 + .57(.79)(.14 − Cost of debt )

Cost of debt= .1045 *100

Cost of debt= 10.45%

Note that equity multiplier of 1.57 -1 will give us .57

Therefore the cost of debt will be 10.45%

4 0
3 years ago
The process of checking products to make sure they meet a company's standards is known as
disa [49]
Usually this is known as quality control
4 0
3 years ago
Joe's Jalopies sold one of its warehouses for $300,000 cash plus a tractor with a fair market value of $25,000. The building had
spayn [35]

Answer:

$355,000

Explanation:

Joe's jalopies sold one of its warehouse for $300,000 and a tractor that has a fair market value of $25,000

The warehouse had a mortgage of $50,000 against it.

The adjusted basis was $130,000

Joe had to make a payment of $20,000 in sales commission to the realtor

Therefore, the amount realized by Joe's jalopies can be calculated as follows

=$300,000+$25,000+$50,000-$20,000

= $375,000-$20,000

= $355,000

Hence the amount that was realized by Joe's jalopies is $355,000

7 0
4 years ago
Pool Perfection provided pool maintenance services worth $1,600 during July; in June, the customers had paid in advance for thes
arlik [135]

Answer:

$1,600

Explanation:

It is important to note that the company uses accrual basis accounting. The Service Revenue account should be credited for $1,600

7 0
3 years ago
Saunders and Flimsy Partnership paid dividends of $0.27 and $0.15 per share last year. If yesterday's closing price was $12.27,
Dmitrij [34]

Answer:

the current yield on the stock is 3.42%

Explanation:

the computation of the current yield on the stock is shown below:

Current yield = Annual dividends paid ÷ Current market closing price

= ($0.27 + $0.15) ÷  $12.27

= $0.42 ÷ $12.27

= 3.42%

hence, the current yield on the stock is 3.42%

we simply applied the above formula to determine the current yield on the stock

7 0
3 years ago
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