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2 years ago

Imagine you are making a $1000 purchase with different payment options. Which of the following

1 answer:

4 0

The payment option that pays the LEAST is <u>B. B. 10% APR, with 12 monthly payments,</u> as it pays back a total of $1,008.33, for borrowing $1,000.

<h3>How to calculate payment options:</h3>

Payment options can be computed using an online finance calculator as follows:

The option that pays the least total cost should be chosen.

<h3>Data and Calculations:</h3>

Loan payment = $1,000

A. 8% APR, no payments for the first 6 months, then 6 monthly payments:

Amount after 6 months = $1,040 ($1,000 + $1,000 x 0.08 x 1/2)

N (# of periods) = 1

I/Y (Interest per year) = 8%

PV (Present Value) = $1,040

FV (Future Value) = $0

<u>Results:</u>

PMT = $174.49

Sum of all periodic payments = $1,046.93 ($174.49 x 6)

Total Interest =$46.93 ($40 + $6.93)

B. 10% APR, with 12 monthly payments:

N (# of periods) = 1

I/Y (Interest per year) = 10%

PV (Present Value) = $1,000

FV (Future Value) = $0

<u>Results:</u>

PMT = $84.03

Sum of all periodic payments = $1,008.33

Total Interest = $8.33

C. 12% APR, with 6 monthly payments:

N (# of periods) = 1

I/Y (Interest per year) = 12%

PV (Present Value) = $1,000

FV (Future Value) = $0

<u>Results:</u>

PMT = $168.33

Sum of all periodic payments = $1,010.00

Total Interest $10.00

Thus, the payment option that pays the LEAST is <u>Option B</u>.

Learn more about periodic payments at brainly.com/question/24244579

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<span>Given that a firm has return on assets (roa) of 15 percent, and debt-equity ratio of 60 percent.

Then, equity multiplier = 1 + Debt-equity ratio = 1 + 60/100 = 1 + 0.6 = 1.6

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Sb-21 for most anchoring situations, which is the best type of anchor line?

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3 years ago

Retail Store sends out an email to all of its customers stating, "Free tote bag and 30% off everything that fits in it, to the f

beks73 [17]

Answer:

This is just an advertisement due to the fact that it misses terms in order to be an offer

Explanation:

To begin with, if we wanted to make that advertisiment a more specifically offer then the manager should add certain conditions and terms in order to make it, like for example the conditions that are necessary in a contract to accept the offer that is being made by the company to the client. Therefore that in order to make that advertisiment an offer it is necessary to add the conditions of the sale that the consumer will have to agree to if he wanted to buy that offer.

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4 years ago

Aztec Company sells its product for $160 per unit. Its actual and budgeted sales follow.

nadezda [96]

Answer:

a. We have:

June's total cash collections = $605,760

July's total cash collections = $715,580

b. We have:

June's Loan Balance End of Month = $1,324,163

July's Loan Balance End of Month = $2,226,541

Explanation:

a. Prepare a schedule that shows the computation of cash collections of its credit sales (accounts receivable) in each of the months of June and July.

Note: See part a of the attached excel file for the schedule that shows the computation of cash collections for June and July.

In the part a of the attached excel file, we have:

June's total cash collections = $605,760

July's total cash collections = $715,580

b. Prepare a cash budget for June and July, including any loan activity and interest expense. Compute the loan balance at the end of each month.

Note: See part b of the attached excel file for cash budget for June and July.

In the cash budget in the attached excel file, the following calculations is made:

June additional loan = Minimum required cash balance - June Preliminary cash balance = $110,000 - (-$1,169,663) = $110,000 + $1,169,663 = $1,279,663

July additional loan = Minimum required cash balance - July Preliminary cash balance = $110,000 - (-$792,378) = $110,000 + $792,378 = $902,378

From the cash budget, we have:

June's Loan Balance End of Month = $1,324,163

July's Loan Balance End of Month = $2,226,541

Download xlsx

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3 years ago

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pashok25 [27]

Answer:

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Note Payable 7800 Cr

Mar 10 Equipment Account 19000 Dr

Cash 19000 Cr

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Cash 1000 Cr

Mar 22 Accounts Receivables 16800 Dr

Service Revenue 16800 Cr

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Accounts Receivable 11800 Cr

Mar 28 Salaries Expense 4800 Dr

Cash 4800 Cr

Explanation:

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Mar 5 The notes signed is a liability and will be credited as liability increases and the cash received will be debited.

Mar 10 The purchase of equipment against cash is an increase in equipment which is an asset so it will be debited and cash will be credited

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Mar 22 The provision of services on account will increase accounts receivable and service revenue. The revenue will be credited and receivables, which are asset will be debited.

Mar 27 The receipt of cash against receivables will be debited as cash increases and credited in receivables account.

Mar 28 The payment of salaries is an expense.

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