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hammer [34]
2 years ago
10

After graduating this May, Dale is planning on buying a new Ferrari for $250,000. He decides to finance his new car with a 5 yea

r loan from Citibank with a 12% interest rate. His annual payment is $48,986. What will Dale's principal payment be at the end of the first year? Group of answer choices a) $5879 b) $10000 c) $18986 d) $50000.
Business
1 answer:
jek_recluse [69]2 years ago
3 0

Answer:

c) $18,986

Explanation:

The computation of the payment of principal is shown below:

= Annual payment - (Balance of Principal × interest rate)

= $48,986 - ($250,000 × 12%)

= $48,986 - $30,000

= $18,986

We do not consider the time period. Hence, we ignored it as it is not relevant for the computation part.

We simply multiply the principal balance with the interest rate and then deduct it from the annual payment.

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Answer:

b. 1 and 3.

Explanation:

The investors are of two types either they are risk averse or risk seekers. Risk averse are those who are not willing to take risks for their investments. They accept lower returns but they are not ready to take more risks than their appetite. Risk seekers are those who demand more risk for more returns. The risks level is so high that even their whole investments can go away but they take this risk to achieve high extra ordinary returns.

8 0
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Thomas Textiles Corporation began November with a budget for 60,000 hours of production in the Weaving Department. The departmen
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Answer:

a) $12,500 unfavorable

b) 0

Explanation:

variable factory overhead controllable variance = actual variable overhead expense - (standard variable overhead per unit x standard number of units)

actual variable overhead expense = $725,000

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standard number of units = 60,000

variable factory overhead controllable variance = $725,000 - $712,500 = $12,500 unfavorable

Controllable factory overhead is not related to any changes in the actual volume or quantity produced.

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Fixed overhead was exactly the same as the standard or budgeted overhead.

6 0
2 years ago
Both the Onus ferry operator in the monopoly market and each of the Yuri ferry operators in the perfectly competitive market wil
defon

Answer:

The overview of the given statement is described in the explanation segment below.

Explanation:

<u>Monopoly Market: </u>

  • The demand curve or market price towards the firm was indeed sloping downhill. MR is also below P and AR.
  • Therefore, when earnings are maximized, whereby MR = MC has been used. Price is therefore above MR (Marginal Revenue).

<u>Perfectly Competitive Market: </u>

  • The  price shall be calculated whenever market forces are equivalent.
  • The firm seems to be the fixed price and therefore the individual company market price becomes horizontal.

Thus,

⇒  AR=P =MR

Hence,

⇒  P = MR

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Answer:

Increases the number of surprises faced by the market concerning the company's stock.

7 0
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A production manager is responsible for a production budget and can potentially earn an additional bonus for minimising producti
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Answer:

The pro side of not listing the 10% would be that until the price reduction becomes official it could be considered just a rumor. The unethical argument for keeping the knowledge that will drop 10% is that the production manager kept from his boss the knowledge that a possible impending reduction could save the company money.

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2 years ago
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