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Firlakuza [10]
2 years ago
9

Sanders Enterprises arranged a revolving credit agreement of $9,000,000 with a group of banks. The firm paid an annual commitmen

t fee of 0.5% of the unused balance of the loan commitment. On the used portion of the revolver, it paid 1.5% above prime for the funds actually borrowed on a simple interest basis. The prime rate was 3.25% during the year. If the firm borrowed $6,000,000 immediately after the agreement was signed and repaid the loan at the end of one year, what was the total dollar annual cost of the revolver?
Business
1 answer:
Usimov [2.4K]2 years ago
5 0

Answer:

Total dollar Annual Cost = $300,000

Explanation:

  • Total loan Commitment = 9000000
  • Borrowed Fund (Used Portion) = 6000000
  • Unused Portion (9000000 - 6000000) = 3000000
  • Annual Commitment Fee for unused Portion = 0.50%
  • Commitment Fee = 3000000 x 0.05% = 15000
  • Borrowed Fund (Used Portion) = 6000000
  • Interest Rate (3.25% + 1.5%) = 4.75%
  • Interest Cost (6000000 x 4.75%) = 285000

Total dollar Annual Cost (15000 + 285000) = $300,000

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Summarize how compound interest helps you to accumulate savings even faster.
yulyashka [42]

Answer:

The magic of compound interest happens in a way  that the more you put in, the faster your money grows.

Explanation:

The magic of compound interest happens in a way  that the more you put in, the faster your money grows. The interest you earn on the amount you save also earns interest and this snowballing effect makes you accumulate your savings even faster. For example, if you deposit $100 in a savings account that pays 5% interest per year. At the end of the year, you account will have (5%*100= 5) plus the $100 you deposited, coming to a total of $105. At the end of the second year, your $5 interest earned in year 1 will earn another 5% interest and so will the $100 you initially deposited.

4 0
2 years ago
Kota Toy Corporation manufactures lizard dolls in two departments, Molding and Assembly. In the Molding Department, plastic is i
noname [10]

Answer:

c.) 82,000

Explanation:

We know that,

The ending work in progress units = Beginning work in process inventory + Units started in production - Units completed and transferred

7,000 dolls =  4,000 dolls + Units started in production -  79,000 dolls

7,000 dolls = -75,000 dolls + Units started in production

So, Units started in production = 75,000 dolls + 7,000 dolls

                                                    = 82,000

5 0
2 years ago
On January 1, 2018, Ramsey Company purchased 35% of the outstanding common shares of the Vapor Company for $70,000 when the net
klasskru [66]

Answer:  Investment income = Earning during 2018 × outstanding common shares

= $80,000 × 35%

Dividend declaration  = Dividend × outstanding common shares

= $40,000 × 35%

<em>Ramsey’s share of Vapor’s income for 2018 =  Investment income - Dividend declaration</em>

<em>= $28,000 - $14,000</em>

<em>= $14,000</em>

8 0
2 years ago
Which idea best explains the Datasheet view?
nydimaria [60]

Answer:

a default setting for displaying all the data in a table

Explanation:

Datasheet View is default settings in Database Management System, which allows access to view the displayed data organized in columns and rows similar to an excel worksheet.

It also allow options for enter, delete or modify the data in a table.

Hence, in this case, the best idea that explains the Datasheet view is a default setting for displaying all the data in a table

3 0
2 years ago
Waterways packages some of its products into sets for home installations. One set (small) sells for $77 with variable costs of p
horrorfan [7]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

One set (small) sells for $77 with variable costs of production for the set at $50. Another set (large) sells for $152 with variable costs of $100.

Contribution margin= selling price - unitary variable cost

Contribution margin Small Set= 77 - 50= $27 per unit.

Contribution margin Large Set= 152 - 100= $52 per unit.

4 0
2 years ago
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