The next year's annual lease payment is $129,240. The term “Lease Payment” is analogous to the rental payment. It refers to the payment created between the owner and renter, per the contract.
A Lease payment refers to the amount that's adequate for the monthly rent prearranged in an exceedingly contract by 2 parties.
Step 1: Verify next year's regular payment.
Since next year, the sales regular payment can have increased by seven-membered, we can verify next year's annual sales as shown:
F=P(1+R)
where;
Next year regular payment
This year's regular payment
R=salary increase rate
In our case;
F=unknown, to be determined
P=190,000 per month
P=(190,000×12)=$2,280,000 annually
R=5%=5/100=0.05
replacing;
F=2,280,000(1+0.05)=$2,394,000
Step 2: Verify next year's rent.
Next years rent=0.05×2,394,000=$119,700
Step 3: Verify insurance, maintenance, utilities and total annual taxes.
Total=annual insurance payments+annual maintenance payments+annual utilities payments+annual taxes
Total=(300×12)+(75×12)+(300×12)+(120×12)=$9,540
Step 4: Verify next year's annual lease payments.
Next year's annual lease payments=next year's rent payment+ insurance+maintenance+utilities+annual taxes
where;
Next year's rent payment=$119,700
Insurance+maintenance+utilities+annual taxes=$9,540
replacing;
Next years annual lease payments=(119,700+9,540)=$129,240
Next year's annual lease payments=$129,24
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nit variable costs may be affected by all of the following except changes in the a.level of activity. b.cost per unit of direct materials. c.sales commission paid to salespeople. d.wage rate of direct labor.
Unit variable costs may be affected by level of activity
Unless there is a cost rise, unit variable costs remain constant at the per-unit level. The cost of a unit is unaffected by activity level. Say, for instance, that a salesman's compensation is $5 per unit. If sales increase, the cost of the sales commission will increase overall while being constant at the unit level. In a similar vein, even if sales drop, commission will still remain $5 per unit. Variable costs for each unit may change due to changes in material costs, direct labor rates, and sales commission. Raw materials, piece-rate labor, production supplies, commissions, shipping expenses, packing costs, and credit card fees are a few examples of variable costs.
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darnold is developing a business message that he hopes will convince his colleagues to keep common areas clean. he wants to focus on employees' shared efforts, interests, and problems. which voice should darnold use?
Darnold is developing a business message that he hopes will convince his colleagues to keep common areas clean. He should use we-voice.
We-voice is a useful tool for concentrating on shared initiatives, passions, and issues. It works especially effectively for internal company communications.
The we-voice stresses the writer's common interests with the reader in a business communication. Although voice can be difficult to define, it is simple to identify.
We frequently say, "Don't use that tone of voice," in reaction to sarcastic, irate, or other improper tones. We might also reply to an email adversely and in an unprofessional manner.
Contrarily, a professional voice reflects favorably on the topic, audience, and writer and generates a favorable reaction from the reader. Make use of everyday language and stay away from negativity to develop this voice.
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auto care has a pretax cost of debt of 6.6 percent and an unlevered cost of capital of 14.6 percent. the firm's tax rate is 34 percent and the cost of equity is 15.8 percent. what is the firm's debt-equity ratio?
The firm's debt-equity ratio is 0.23 with cost of debt 6.6 percent, cost of capital as 14.6 percent and firm's tax rate as 34 percent.
Write a short note on debt-to-equity ratio.The D/E ratio, commonly referred to as the debt-to-equity ratio, gauges a company's capacity to pay down its debt. It is calculated by dividing an organization's total debt by the total of its shareholders' equity. The higher the D/E ratio, which shows how much debt a company has compared to its assets, the harder it may be for the company to fulfill all of its obligations.
It's crucial to know precisely which debt and equity categories are taken into account on your balance sheets because the debt-to-equity ratio can be calculated in a number of different ways. The debt-to-equity ratio is a popular tool used by banks and other lenders to determine how much debt a company may have.
To solve the question :
Converting percent into decimal :
Cost of equity = 15.8 percent × 100
=0.158
Cost of capital = 14.6 percent × 100
= 0.146
Cost of debt = 6.6 percent × 100
= 0.066
Cost of equity (RE) = Cost of capital + (Cost of capital - Cost of debt ) × D/E × (1 - firm's tax rate)
RE = .158 = .146 + (.146 - .066) × D/E ×(1 - .34)
D/E = .23
Therefore, firm's debt-equity ratio is 0.23.
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vilas county hospital consumed 400 boxes of bandages per week last year. the price of bandages was $80 per box, and the hospital operates 52 weeks per year. the cost of processing an order was $64, and the cost of holding one box throughout a full year was 20% of the value of the material. last year the hospital ordered bandages, on average, once every two weeks, each time ordering 800 boxes. what extra cost did the hospital incur that could have been avoided if the eoq concept had been applied? group of answer choices more than $1,450 more than $650 and less than $1,050 less than or equal to $650 more than $1,050 and less than $1,450
The extra cost did the hospital incur that could have been avoided if the EOQ concept had been applied is option B which is more than 1450
The annual cost of ordering = Number of orders×Ordering cost
= (400×52/800)×64
= $1664
The annual cost of holding = Average Inventory×Holding cost
= (800/2)×(0.2×80)
= $6400
Total cost = 6400+1664
= $8064
EOQ = √{(2×Annual Demand×Ordering cost)/(Holding cost)}
= √{(2×400×52×64)/(0.2×80)}
= 408 Approximately
Annual cost of ordering = (400×52/408)×64
= $3262.75
Annual cost of holding = (408/2)×(0.2×80)
= $3264
Total cost = 3262.75 + 3264
= $6526.75
Difference = $8064 - $6526.75
= $1537.25
Hence option B is correct which is more than 1450.
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the accounting-like idea that the work done on a system changes the system's energy is called .
The law of conservation of energy refers to the accounting-like concept that the work done on a system alters the system's energy.
Energy cannot be created or destroyed; instead, it can only be changed from one type of energy to another, according to the law of conservation of energy. This indicates that unless energy is introduced from the outside, a system always has the same quantity of energy. In the situation of non-conservative forces, when energy is changed from mechanical energy to thermal energy yet the total energy does not change, this is especially perplexing. Energy must be converted from one form to another in order to be used.
Law of Conservation of Energy Examples:
In a loudspeaker, electrical energy is converted into sound energy.In a generator, mechanical energy is converted into electrical energy.When fuels are burnt, chemical energy is converted into heat and light energy.Learn more about Law of Conservation of energy at,
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what type of contract is formed when a seller places goods with a common carrier for delivery after a contract is executed?
A carriage of goods contract is thus the legal instrument entered into between a carrier and a sender goods (or consignor) in which the carrier agrees to transport items in exchange for payment to another person, typically the receiver (or consignee).
A contract of sale of goods is one in which the seller transfers or agrees to transfer ownership of products to the buyer for a fee. A contract of sale may exist between one part-owner and another. A selling contract can be absolute or conditional. This is sometimes referred to as goods. This happens when a seller sells a product and promises to keep it as bailee for the buyer.
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one of the major risks of pursuing a strategy of tangible or intangible differentiation advantage is that
One of the major risks of pursuing a strategy of tangible assets or intangible differentiation advantage is that company may fail to detect the competitors.
What are tangible assets?Long-term physical resources that are owned by a company or organization and have some economic worth are referred to as tangible assets. Assets are typically not for sale and are acquired by the corporation in order to run its activities successfully. Examples of the same include buildings, vehicles, tools, equipment, furniture, fixtures, land, computers, and so on. Most often, these assets are at risk of being lost to theft, fire, accidents, or other natural disasters. A useful economic life exists for tangible assets, beyond which they run the risk of becoming obsolete. The most popular technique used by businesses to stretch out the cost of an asset over the course of its economic life is depreciation.
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a lessor, ace corp. enters into an equipment lease with a lessee, spades inc. the terms of the lease require annual lease payments of $48,000 over a 10-year period, with the first payment due immediately upon the commencement of the lease on january 1. there is no estimated residual value. the implicit rate of the lease is 5%. what amount would the lessor report in its income statement (ignoring taxes) for the year ended december 31?
The lease's implicit interest rate is 5%. The lessor would record $2160 in income (before taxes) in its income statement for the fiscal year ended December 31.
The interest rate is the amount charged by a lender to a borrower and is expressed as a percentage of the principal—the amount borrowed. The interest rate on a loan is typically expressed as an annual percentage rate. An interest rate can also be applied to the amount earned by a savings account or certificate of deposit at a bank or credit union. The interest earned on these deposit accounts is expressed as an annual percentage yield (APY).
The interest rate is the amount charged by a lender to a borrower in addition to the principal for the use of assets. An interest rate also applies to the amount earned on a deposit account at a bank or credit union.
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xyz title company is closing a transaction for bob buyer and discovers a mortgage still of record from community bank. in fact, bob paid the mortgage off six months earlier. bob buyer gets a call from his lender, boa, that they can't close the loan because of the community bank mortgage. bob loses a month's time and the interest rate on his loan goes up a half point while community bank records the satisfaction. what are the rights of the parties?
Bob has no recourse against anyone if he misses a month of work and his loan's interest rate increases by 0.5 percentage points while the community bank records the satisfaction.
The amount that a lender charges a borrower as a percentage of the community principal, or the amount that was loaned, is known as the interest rate. The annual percentage rate, which is how loans' interest rates are typically expressed, is calculated annually.
A savings account or certificate of deposit earnings at a bank or credit community union may also be subject to an interest rate. Interest on these deposit accounts is measured as an annual percentage yield.
The borrower is essentially charged interest for the use of the asset. Cash, consumer goods, vehicles, and real estate are all examples of lent interest rate assets. Because of this, an interest rate can be viewed as the "cost of money" because it increases the cost of borrowing the same amount of money.
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franco is considered to be tech-savvy by his friends. he is unafraid to take risks when it comes to trying new products and is always the first in his group to get the latest gizmo. what type of product adopter is franco?
Franco is considered to be tech savvy. He is unafraid to take risks when it comes to trying new products and is always the first in his group to get the latest gizmo. Franco is a innovator type of product adopter.
To be tech savvy is to be comfortable and familiar with using technology. This can mean different things for different people, but generally it means being able to use tech products for tasks such as communication, research, problem solving, and entertainment.
For some people, being tech savvy also means having some level of understanding of how technology works and being able to take risk when issues may arise.
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if accrued salaries were recorded on december 31 with a debit to salaries expense and a credit to salaries payable, the entry to record payment of these wages on the following january 5 would include:
a credit to cash and a debit to salary payable.
What does the phrase "credit your salary" mean?If you get your salary, it counts as income and is therefore credited (into your bank account). There might be one more: Banks apply credit to increment or increase (here in your bank account) and debit to decrement, according to their rules (suppose you have paid in by your debit card).
entry for payments due: A screenshot of the entry to record for salaries payable
The form of payroll journal entry that must be used to document in the books of account the remuneration that must be given to the employees is what is known as salary payable. Since it is anticipated to be paid within a year, it is typically listed as a current liability on the balance sheet.
Accruing payroll liabilities, transferring cash, and making payments are the three phases involved in recording the payroll process via journal entries.
Add up your short-term wage obligations. According to accounting regulations, costs and liabilities must be recorded as they are incurred.
Put money in the payroll account.
Pay your debts.
a credit to cash and a debit to salary payable.
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22 in some companies, the performance measures for profit center managers are heavily influenced by cost allocations downward from organizational units (such as company headquarters). why is this a mistake?
The accounting data for the company will lose value. The financial statements of the business can include more favorable outcomes.
What are the three primary purposes for which managers of companies use information from managerial accounting?provides managers with information that supports their three primary responsibilities: controlling, directing, and planning operations.
How do expenses affect the accounting equation?A charge will have a negative impact on a company's retained earnings, which are included in stockholders' equity, or on a sole proprietor's capital account, which is included in owner's equity.
What are three potential influences on accounting ethical behavior?The level of ethical behavior in an organization is affected by individual, social, and opportunity factors all at the same time. Personal objectives, moral values and attitudes, and knowledge level are all individual factors. Cultural norms and the actions and values of coworkers and significant others are examples of social factors.
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with the decentralization post-fordism movement, post-industrial cities are over saturated with abandoned factories, housing, and other amenities. the major question that cities, like detroit, are facing is how a once populous city can shrink appropriately. what should these rustbelt cities do with all the vacant buildings without creating redundant infill that does not have the population to support it?
Answer:
Small batch production, specialized products
-City of Melbourne, infill, provided amenities, housing, walkability
Explanation:
jack works on the production line at an assembly plant. jack receives a base salary plus $1.25 per unit assembled. this is an example of a cost. multiple choice question. step-wise mixed variable fixed
jack works on the production line at an assembly plant. jack receives a base salary plus $1.25 per unit assembled. This is an example of a mixed cost.
Mixed costs, often referred to as semi-variable costs, are created when a variable cost and a fixed cost are combined. The various production levels within a firm have an impact on the total blended cost.
When a cost has both a fixed cost and a variable cost, that cost is said to be mixed cost. It is crucial to comprehend how these components combine to create a cost in order to forecast how costs will change as activity levels change.
Production is the process of mixing several material and immaterial inputs to create something that is intended for consumption. Production is the process of creating a good or service with value that enhances people's utility.
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which of the following statements are true? group of answer choices a bank's assets are its sources of funds. a bank's liabilities are its uses of funds. a bank's balance sheet shows that total assets equal total liabilities plus equity capital. a bank's balance sheet indicates whether or not the bank is profitable.
All of the statements are true. A bank's assets are its sources of funds.A bank's liabilities are its uses of funds.A bank's balance sheet shows that total assets equal total liabilities plus equity capital.
A bank balance sheet is a financial statement that shows the bank's assets, liabilities, and equity capital. The balance sheet is used to determine whether the bank is profitable. The assets of the bank are its sources of funds, and the liabilities of the bank are its uses of funds. The equity capital of the bank is the difference between the assets and the liabilities. The balance sheet shows that total assets equal total liabilities plus equity capital.
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limited government licenses that create a monopoly do so because part 2 a. the license grants a marginal cost advantage. b. the firm will become a natural monopoly. c. the license is an entry barrier. d. all of the above.
Limited government licenses that create a monopoly do so because the license is an entry barrier.
Hence, option C is correct.
What do you mean by monopoly in economics?
Monopoly can be defined as a situation where there is a dominance of a single seller in the market. It is opposite to the concept of perfect competition. An unregulated monopoly possesses market power and can influence prices in the overall sector.
The main features revolves around
Only One Seller and Various Buyers.No Produce Replacement OptionVery Difficult to Enter in Market.Pricing Control.Government Driven. Natural Monopoly.There are usually three types of monopoly
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carol had considered buying a 2015 raddo car. while researching the car before she bought it, she came across a magazine article claiming that the car's brakes were prone to failure. carol was motivated to pay attention to the article because of the information's:
Carol was motivated to pay attention to the article because of the information's perceived safety risk.
Adjective. "motivating." /mtvet/ us. able to inspire a person's enthusiasm for a task: An inspiring manager understands how to support others in taking action.
motivate is more about giving people reasons to act, whereas inspiration is more about a person reaching a point of wanting to act. That is the distinction between babysitting and empowering, motivating or swaying, starting a fire and putting it out. Both inspiration and motivate are required. Any member of a class of specific words used with noun phrases to indicate the identity of the noun phrase referents is considered an article. Articles as a category make up a part of speech. Both "the" and "a(n)" are articles in the English language, which join with nouns to create noun phrases.
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a commercial for roses says that it's not valentine's day unless there are flowers for a gift to women, and it's not valentine's day dinner without these florist's roses. this ad attempts to tie the product to a:
This ad attempts to tie the product to a social attitude. Individual attitudes regarding social objects are referred to as social attitudes.
Individual attitudes that are so thoroughly influenced by group interactions become very standardized and homogeneous within the group. While the majority of social attitudes are so universally ingrained and standardized, other attitudes, such as those of antisocial and misbehaved people and of those who live in the future, are equally significant.
The attitude is initially a trial response, which is an interrupted, substitute behavior that develops within an incomplete adjustment response, but it has the potential to become the organism's permanent set. From concrete to outright
Muscular reaction that is abstract, inner, or neurological (306) and has three control mechanisms.
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which communication method is most appropriate for assessing the commitment of project stakeholders?
Communication method is most appropriate for assessing the commitment of project stakeholders Meetings.
Email is one of the maximum famous gears to apply for stakeholder communication. It has some of advantages including instant transport of facts, evidence of sending, it makes it less complicated to manipulate communications with every stakeholder and you may additionally screen engagement and open rates.
For a venture that includes crew contributors operating remotely, for example, a video convention is an extremely good manner to hold in contact and trade facts on development and goals. For initiatives with an inner crew, face-to-face meetings are regularly the fine technique of communication.
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what is the interest rate, i, per period? at the beginning of each quarter, a 50-year-old woman whose birthday is march 1st, deposits $1200 in a retirement account that pays 6% interest, compounded quarterly. how much is in the account when the woman turns 65 years old?
The amount in the account, when the woman turns 65 years old will be $114,358.
Given in the Question:
The woman deposits $1200 every quarter, her first deposit will be made on her 50th birthday, April 1st.
As of March 1, the woman will be 65 years old, so we must determine how much money will be in her account.
Calculate interest for the quarter ending December 31 of the previous year by using the following steps:
So, there will be a total of (14 x4) +3 = 56 +3 = 59 quarter periods.
To determine the Final deposit amount, we will use the formula:
FV = [tex]P\frac{x(1+i)^{n}-1) }{i} (1 +i)[/tex]
Where,
P = $1200
i = 0.06/4 = 0.015
n = 59
Therefore, we will compute:
FV = [tex]1200\frac{(1+0.015)^{59}-1) }{0.015} (1 +0.015)[/tex] = $114,358.
Hence, the amount in the account when the woman turns 65 years old = $ 114,358.
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which of the following are examples of defensive industries? a. food producers. b. durable goods producers. c. pharmaceutical firms. d. public utilities. e. a, c and d
Examples of defensive industries are food producers, pharmaceutical firms, and public utilities. Thus, the correct option is (e.) a, c, and d.
What are defensive industries?Defensive sectors are those that are largely stable or impervious to economic swings, such as economic expansions and recessions. Defensive enterprises are generally untouched by an economic boom or recession since their earnings are unaffected by economic swings. The industry is often made up of enterprises that deal with market necessities, i.e., necessities. Utility companies, for example, are defensive since customer demand does not fall as much during downturns. Whether the economy is in a slump or not, consumers require energy, water, heating, and air conditioning. Consumer goods and healthcare are the other two key defensive industries.
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a good project priority system will promote a culture where all stakeholders contribute to the goals of the organization but ultimately someone has to choose what direction to go. what are upper management's risks in prioritizing projects?
Picking the wrong ones are upper management's risks in prioritizing projects .
What is Organization Strategy ?
A company's planned actions to accomplish long-term objectives make up its organizational strategy. A company's strategic plan is comprised of all of these actions. It takes at least a year to complete a strategic plan, and all organizational levels must participate. The top management develops the overarching organizational strategy, while the middle and lower management adopt goals and plans to incrementally carry out the overall strategy.
This collective effort is comparable to a journey. To finish the subsequent legs of the journey, which ultimately lead to the final destination, daily obstacles like poor road conditions must be overcome.
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when consumers make a small down payment, borrow the remaining amount of the purchase price from a lender, and reap the rewards off of the full investment value, they are demonstrating what concept?
When a borrower delivers collateral to a lender to secure a loan, they are providing a piece of real estate or another asset.
The definition of a collateral acquisitionWhen a borrower delivers collateral to a lender to secure a loan, they are providing a piece of real estate or another asset. Frequently, the house bought with the money from a mortgage serves as the collateral for a loan.Collateral, when used as a noun, refers to anything offered as a promise to pay back a loan. Therefore, if you take out a loan or mortgage to buy a car or a house, the loan agreement will typically stipulate that the vehicle or property is collateral and will be returned to the lender if the money owed is not paid.Security that isn't the main form of protection is called collateral security. In other words, lenders use collateral security in addition to main security to obtain loans. Collateral means secondary or supplemental.To learn more about Collateral refer to:
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if you want to have $3400 in seven years, how much money must you put in a savings account today? assume that the savings account pays 6% and that interest is compounded annually. (round your answer to the nearest $10.) (b) would your answer be higher or lower than your first answer if the savings account pays 7%?
The savings would be $2261.19 and in lower if the account pays 7% in the savings account.
Which bank offers a savings account with 7% interest?
The required balance ranges from Rs 2,000 to Rs 5,000 per month on average. Savings accounts at Small Finance Bank are eligible for interest rates of up to 7%. Savings accounts at Equitas Small Finance Bank are eligible for interest rates of up to 7%. The required balance ranges from Rs 2,500 to Rs 10,000 per month on average. Depending on the balance, the bank may assess a penalty of between Rs. 600 and Rs. 150 if the bank falls below the acceptable threshold. For instance, if the balance is less than Rs. 2500, a penalty of Rs. 600 is assessed, and if it is between Rs. 7500 and Rs. 10,000, a penalty of Rs. 150 is assessed (for metro and urban accounts)
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the new york federal reserve bank is so important to the federal reserve system becuse of the following except that
The Newyork federal reserve bank is so important to the federal reserve system because of the following except that it serves as the location for Federal Reserve board meetings.
The Second District and the United States' economic and financial stability and vigor are promoted by the New York Fed within the Federal Reserve System. Our country's central bank is made up of the 12 regional Reserve Banks and the Board of Governors in Washington, D.C. It is in charge of overseeing monetary policy and the financial system. In order to achieve this, it controls the economy's money supply, sets interest rates, and, more recently, has bought trillions of dollars' worth of assets to bolster the financial markets. It is in charge of overseeing monetary policy and the financial system. In order to achieve this, it controls the economy's money supply, sets interest rates, and, more recently, has bought trillions of dollars' worth of assets to bolster the financial markets. The Federal Reserve System offers a secure, adaptable, and stable monetary and financial system to the nation. The Federal reserve system primary responsibilities include overseeing and regulating banks, implementing national monetary policy, preserving financial stability, and offering banking services.
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what are two ways a company can set up a wholly owned subsidiary in a foreign country? (check all that apply.)
A association can boost a utterly owned subsidiary through a greenfield challenge , that means that the company creates the whole operation itself.
Another possibility is purchasing an current operation from a neighborhood employer or any other foreign operator.
What are two disadvantages of working a absolutely owned subsidiary ?Disadvantages include the chance of dropping manipulate over technological know-how and a lack of tight control. The blessings of completely owned subsidiaries include tight manipulate over technological know-how.
Foreign companies need to bear the full capital fees and dangers of placing up distant places operations.
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https://brainly.com/question/28188459#SPJ4katie company issues $14 million in bonds. the bonds are well received by investors solely based on the excellent reputation and past performance of the company, its products, and its executives. katie most likely is issuing a(n) bond.
Katie most likely is issuing a debenture bond.
A debenture bond is a bond that is not secured by the issuer's assets. Instead, the bond is only backed by the issuer's reputation and integrity. To compensate investors for the increased risk of not having their funds repaid, this type of bond typically bears a higher rate of interest than a secured bond.
Debentures can pay periodic interest payments, which are also known as coupon payments. Debentures, like other types of bonds, are documented in an indenture. An indenture is a legally enforceable agreement between bond issuers and bondholders. The contract specifies the terms of a debt offering, such as the maturity date, the timing of interest or coupon payments, the method of calculating interest, and other details. Governments and companies both have the authority to issue debentures.
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improvements in the productivity of labor will tend to: group of answer choices decrease wages. decrease the supply of labor. increase wages. increase the supply of labor.
Improvements in the productivity of labor will tend to option(c) increase wages.
Production per worker or per hour worked is referred to as labor productivity. Skills of the workforce, technology advancement, managerial techniques, and changes in other inputs are all variables that can have an impact on labor productivity (such as capital).
Growth in productivity helps businesses to raise worker wages. Unit labor costs (ULCs), a measure of the labor expenses incurred in generating one unit of output, go down as labor productivity rises, allowing businesses to offset the impact of pay increases on profits.
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juno tells liu she will give him her old car if he babysits her son marc weekday evenings for six months. liu agrees. juno and lee have formed a. a void contract. b. an unenforceable contract. c. a unilateral contract. d. a bilateral contract.
Juno tells Liu she will give him her old car if he babysits her son marc weekday evenings for six months. Liu agrees. Juno and Liu have formed a bilateral contract.
What is bilateral contract?A bilateral contract is a contract in which both parties exchange promises of performance. One promise works in return for the other promise. As a result, each party is both an obligor of its own promises and an obligor of the other party's promises. (Compare: unilateral contract) Each sales contract is an example of a bilateral contract.A car buyer may agree to pay the seller a certain amount in exchange for ownership of the car. Seller agrees to surrender vehicle title in exchange for the stated sales amount. A bilateral contract is a binding agreement between two parties in which both parties commit to perform one side of the agreement.To learn more about bilateral contract from the given link :
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a loan is repaid by end-of-year level payments at an annual effective interest rate of 5%. the amount of principal repaid in the first payment is 100. given that the term of the loan is 10 years. (i) what is the principal repaid in the 10th payment? ans
The method for calculating loan interest payments is as follows: Divide the annual payment amount, usually 12 months, by the interest rate you are being charged.
Take that number and divide it by the initial balance of your loan, which ought to begin at the total amount that you borrowed.
How is the loan's interest payment calculated?Divide the number of payments you will make in that year by your interest rate.Divide 0.06 by 12 to get 0.005, which you would get if you made monthly payments and had an interest rate of 6%.To determine the amount of interest you will pay in that month, multiply that number by the balance on your remaining loan.
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