Answer:
Using an excel spreadsheet I prepared an amortization schedule. For the 61st payment, the interest rate is increased from 0.5% to 0.625% monthly.
(a) Calculate the loan balance immediately after the 84th payment.
(b) Calculate the amount of interest in the 84th payment.
(c) Calculate the amount of the balloon payment.
As you can see, the interest amount for the 61st payment increases, while it had been decreasing previously.
Answer:
The correct answer is letter "C": Exactly $396.
Explanation:
An Amortization Schedule is a table that shows the amounts of principal and interest that comprise each loan payment. Amortization schedules reveal the true cost of purchasing a home, car or requesting a student loan that is<em> paid with regular, equal installments over a period of time</em>.
Thus, <em>Roxanne should pay $396 monthly for the next 10 years</em>.
Answer:
The correct answer is letter "B": The proceeds of the bond issue entirely as debt.
Explanation:
Under the U.S. General Accepted Accounting Principles (<em>GAAP</em>) the issuance costs of bonds are ignored for reporting purposes but the amount of sales revenues is recorded as debt. The amortization of the bond can be calculated using the <em>effective interest method</em> or the <em>straight-line method</em>.
Answer:
Explanation:
Radio Frequency Identification (RFID) is a form of wireless communication that used to uniquely identify an object, person or animal.
(1) RFID chips are used to track goods in distribution.
These chips built-in a scanner that is used to track goods in distribution. for example, logistic companies using this tool to track goods in their distribution.
(2) RFID chips are used to track job progress in production:
These chips are used in the factory to track the job progress in production. For example, in the Biscuit Factory, counting of numbers of biscuits and then wrapping into packet.
(3) RFID chips are used to provide special instruction to the operator:
These chips are used to provide special instruction to the operator working on the machine in the industry of textile, flour mills, and steel industry, etc.
(4) RFID chips can be used in inventory record keeping:
These chips are used in the scanner that tracks the inventory record. Large organizations and firms that are producing products use RFID chip built-in scanner to keep the inventory record. These scanners track inventory and submit data to a centralized system for making decisions etc.
Answer:
The required reserves increases by $6.250
Explanation:
Step 1. Given information.
Stella deposits $25.000
Required reserve 25%
Step 2. Formulas needed to solve the exercise.
Required reserves = deposits * reserve ratio
Excess reserves = deposits - required reserves
Step 3. Calculation.
Required reserves = 25.000 * 0.25 = $6.250
Excess reserves = 25.000 - 6.250 = $18.750
Step 4. Solution.
The required reserves are $6.250 and the excess reserves is $18.750
