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Leya [2.2K]
2 years ago
14

DeKalb Company made a loan of $6,000 to one of the company's employees on April 1, Year 1. The one-year note carried a 6% rate o

f interest. The amount of interest revenue that DeKalb would report in Year 1 and Year 2, respectively would be
Business
2 answers:
valina [46]2 years ago
6 0

Answer:

Interest revenue year 1   $270

interest revenue year 2  $  90

Explanation:

To solve for the interest revenue we have to do:

principal x rate x time

being rate and time express in the same metric

As the rate is annual then, time should be expressed as the portion of the year.

<u>Year 1</u>

time: From April 1st to Dec 31th -->9 months

6,000 x 0.06 x 9/12 = 270 interest revenue

<u>Year 2</u>

time: From Jan 1st to March 31th --> 3 months

6,000 x 0.06 x 3/12 = 90 interest revenue

malfutka [58]2 years ago
6 0

Answer:. The interest revenue that will be recorded in year 1 is $270.

The amount of interest revenue that will be recorded in year 2 is $90

Explanation:

Firstly, it is important to note that year 1 starts from April 1st to December 31st which is a period of 9 months and year 2 commences from January 1st of the succeeding year down to March 31st which is a period of 3 months.

Applying the formula for simple interest:-

(P × R × T)/100

Where P = Principal

R = Rate

T = Time (in years)

Since, year 1 is basically a period of 9months (April 1st to December 31st), we will convert it to years before solving:

12months ----- 1 year

9months ------ ? year

= 9/12 × 1

= 3/4 years

(6000 × 6 × 3)/(100 × 4)

= $270 will be recorded in the year 1

Year 2 is a period of 3 months (January 1st to March 31st)

Converting 3 months to years will give 1/4 years

(6000 × 6 × 1)/(100 × 4)

= $90 will be recorded in year 2

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Hence, theses are the roles of marketing. A proper marketing can increase sale as well as the good will of the firm.

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1 year ago
YASHARI earns $27,000 per year, is single, and lives in Wyoming. She has $7000 in subsidized loans and another $19,000 in unsubs
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Answer:

a) 14.43% ,  The amount is reasonable

b) Pay as you go

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d) Standard repayment plan

Explanation:

Yashari Monthly take-home pay = $1850

<u>a) Determine the % of her paycheck goes toward student loans if she chooses standard repayment</u>

Rate of interest = 4.30%

hence % of her paycheck that goes toward student loan = 14.43%

The repayment amount = $32035. which is very reasonable as well

b) what plan that has the longest repayment period  

PAYE ( pay as you earn ) has the longest repayment period

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Yashari should should prioritize paying the Loan instalment before saving for the emergency fund because of the penalties that comes with loan defaulting

d) Yashari should select the Standard repayment plan because the final amount paid using this plan is lower

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1 year ago
According to the rule of 72, if the GDP of the Apex Federation is growing at 1.7% per year, its economy will double in approxima
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Answer:

C. 42 years

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Rule 72 is used in finance and economics to estimate the number of years it will take for a given capital value to be doubled, given a given annual interest rate. In the case of GDP, the interest rate is replaced by the growth rate of the economy.

The formula for this rule consists of dividing 72 by the growth rate of the economy. The result will be the number of years for the capital value to double.

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If the GDP growth rate is 1.7%, we have:

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Daryl enjoys his job because he gets to analyze the security systems in different organizations and provide recommendations to i
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9) Marshall Corporation has established a target capital structure of 35 percent debt and 65 percent common equity. The current
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Answer:

\boldsymbol{ Weighted\;average\;cost\;of\;capital (WACC)=5.35\%}

Explanation:

This acts as more of a discount price for such an estimation of such a fixed present price of a company. It is often used to analyze investments when it is supposed to measure the opportunity price of the company. It is then used by corporations as the obstacle limit.

Let the total cost of equity to be Re = 5% = 0.05.

Let the market value to be E = 65% = 0.65.

Let V to the total market cost that combined debt and equity = 1 .

Let the total price of debt to Rd = 10% = 0.1.

Let the debt to be D = 35% = 0.35.

Let the income tax rate to be Tc = 40% = 0.4.

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                             =\frac{0.65}{1} \times0.05+\frac{0.35}{1} \times0.1\times(1-0.4)=5.35\%

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