Delaney takes out a $500,000 loan to open a new bar. He will repay the loan in 200 monthly installments, beginning 1 month from now. If he pays equal amounts of principal every month, what will be his third payment

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Answer 1

Answer:

Answer:

the question is incomplete, since you need an APR rate. I looked for similar question and the effective interest rate was 15%:

Delaney will pay $500,000 / 200 = $2,500 in principal every month.

His first payment will be = ($500,000 x 15% x 1/12) + $2,500 = $6,250 + $2,500 = $8,750
His second payment will be = ($497,500 x 15% x 1/12) + $2,500 = $6,218.75 + $2,500 = $8,718.75
His third payment will be = ($495,000 x 15% x 1/12) + $2,500 = $6,187.50 + $2,500 = $8,687.50

Related Questions

The members of a wedding party have approached Imperial Jewelers about buying 26 of these gold bracelets for the discounted price of $367.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial Jewelers to buy a special tool for $457 and that would increase the direct materials cost per bracelet by $7. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $8.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party’s order using its existing manufacturing capacity.
To judge whether a particular diversification move has good potential for building added shareholder value, the move should pass the following tests:___________. A) the attractiveness test, the barrier-to-entry test, and the growth test. B) the strategic fit test, the resource fit test, and the profitability test. C) the barrier-to-entry test, the growth test, and the shareholder value test. D) the attractiveness test, the cost-of-entry test, and the better-off test. E) the resource fit test, the strategic fit test, the profitability test, and the shareholder value test.
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On December 31, 2021, Larry's Used Cars had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $70,000 and $1,250, respectively. During 2022, Larry's wrote off $2,675 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $5,650 at December 31, 2022. Bad debt expense for 2022 would be:
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On January 1, 2021 M.T. Glass purchased the following investments: 1. 7,500 shares (representing 15%) of ZZ Company stock for $98,000 2. 25,000 shares (representing 40%) of AA Company stock for $440,000 M.T. Glass recorded the sale of some of its investments in 2022 as follows: 1. September 1 sold 5,000 shares of the ZZ Company stock for $76,000 2. December 31 sold 4,000 shares of the AA Company stock for $120,000 AA Company and ZZ Company reported the following information for the years 2021 and 2022: AA Company ZZ Company Net income in 2021 $260,000 $200,000 Dividends paid to M.T. Glass in 2021 $24,000 $15,000 Market value at Dec 31, 2021 $27 per share $22 per share Net income in 2022 $160,000 $225,000 Dividends paid to M.T. Glass in 2022 $41,000 $5,000 Market value at Dec 31, 2022 $24 per share $28 per share Calculate the amount of the realized gain reported in M.T. Glass' 2022 income statement resulting from the sale of the AA Company stock.

Answers

Answer:

$15000

Explanation:

If the investor the outstanding shares of the other company which is less than 20% then we can report the unrealized gains or losses in the income statement. The unrealized gain can be calculated as follows:

check the attachment below

Jay's lease payments are made at the end of each period. Jay's liability for a capital lease would be reduced periodically by theA. Minimum lease payment less the portion of the minimum lease payment allocable to interest.B. Minimum lease payment plus the amortization of the related asset.C. Minimum lease payment less the amortization of the related asset.D. Minimum lease payment.

Answers

Answer:

A is the correct option.

Explanation:

Lease payment is similar to rent which is dictated under the contract between the two parties, which grants participants the legal right for using the real estate holding computers, software and other assets for a specified period of time. The time period for paying lease payment can range a monthly basis to long lengths of 100 years or more. The lease payment is decided by factors such as assets' value, discount rates, and the lessee's credit score.

You sell short 600 shares of Microsoft that are currently selling at $25 per share. You post the 40% margin required on the short sale. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Microsoft is selling at $24? (Ignore any dividends.) Multiple Choice 10.00% 7.50% 17.50% 5.00%

Answers

Answer:

10.00%

Explanation:

Calculation for what will be your rate of return after 1 year if Microsoft is selling at $24

Using this formula

Rate of return = (Current price - Initial price ) /Current price *margin

Let plug in the formula

Rate of return=($25 per share-$24)/$25 per share*0.40

Rate of return=$1/10

Rate of return=0.1*100

Rate of return=10.00%

Therefore what will be your rate of return after 1 year if Microsoft is selling at $24 is 10.00%

Final answer:

In this short sale, the initial selling price of the shares was $15,000. A 40% margin was posted, amounting to $6,000. After the price dropped to $24 per share, the shares were bought back for $14,400. The profit gained, which is $600, is divided by the initial investment to obtain a rate of return of 10%.

Explanation:

In a short sale, the initial transaction involves selling a borrowed stock in the hopes of buying it back later at a lower price to earn a profit. The rate of return in a short sale is calculated using the profit earned from the short sale divided by the amount of capital invested originally.

First, we need to calculate how much the total value of the shares was at the time of selling short, so that’s 600 shares × $25/share = $15,000. You posted a 40% margin for the short sale, which means you committed $6,000 (40% of $15,000).

After one year, the Microsoft stock drops to $24 per share. At that price, you can buy back all 600 shares for 600 shares × $24/share = $14,400. The difference between the amount you sold the shares for and what you bought them back at is $15,000 - $14,400 = $600.

Now to calculate the rate of return, take the profit ($600) and divide by the amount of capital originally committed to the transaction ($6,000), so the rate of return is $600 / $6,000 = 0.10 or 10%.

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The income statement for the Clothing Division of Tom Ron Surf Company is as follows: Sales $445,000 Operating expenses 270,000 Net operating income 175,000 Interest expense 35,000 Earnings before taxes 140,000 Income tax expense (30%) 42,000 Net income $ 98,000 How much is net operating profit after taxes

Answers

Answer:

78000

Explanation:

Faux Trees Company produces artificial Christmas trees. A local shopping mall recently made a special order offer; the shopping mall would like to purchase 230 extra-large white trees. Faux Trees Company is currently producing and selling 20,000 trees; the company has the excess capacity to handle this special order. The shopping mall has offered to pay $160 for each tree. An accountant at Faux Trees Company provides an estimate of the unit product cost as follows This special order would require an investment of $5000 for the molds required for the extra-large trees. These molds would have no other purpose and would have no salvage value. The special order trees would also have an additional variable cost of $6.03 per unit associated with having a white tree. This special order would not have any effect on the company's other sales. If the special order is accepted, the company's operating income would increase (decrease) by

Answers

Answer:

operating income increase by 30,413 dollars

Explanation:

We will calculate the income as usuall revenues - expense

We aren't given with other manufacturing cost so we assume this are all the cost involved in the order:

Special Order Revenue: 230 trees at $160 each: 36,800

Special Order Cost:

mold cost: 5,000

variable cost: 230 trees x 6.03 dollars = 1,387

Total cost for the order: 6,387

Financial outcome: 36,800 - 6,387 = 30,413

Final answer:

The special order from the local shopping mall would increase the Faux Trees Company's operating income by $22,413.10.

Explanation:

To determine the change in the operating income due to this special order, we must first calculate the total revenue and total costs associated with the order. The total revenue can be calculated as the product of the offered price per tree ($160) and the number of trees ordered (230), which equals $36,800.

The total cost is the sum of the initial investment for the molds ($5000), plus the variable cost per tree ($6.03) multiplied by the number of trees (230), which equals $6386.90.

So, the change in operating income, or profit, due to this special order can be found by subtracting the total costs ($6386.90 + $5000) from the total revenue ($36800). In this case, the special order would increase the company's operating income by $22,413.10.

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Delicious Desserts is thinking about ending the production of two types of ice cream. Financial data related to the products is provided below: Rum Raisin Blue Moon
Sales $680,000 $573,000
Variable expenses 246,000 219.000
Fixed expenses 468,000 364,000

If Delicious stops making Rum Raisin ice cream, it estimates it can eliminate 75% of the fixed costs associated with that product. Similarly, if it stops making Blue Moon, it estimates it can eliminate 70% of the fixed costs associated with that product.
Given these figures, which of the following statements is true?

A) Delicious would be worse off if it discontinues Rum Raisin and would be better off if it discontinues Blue Moon.
B) Delicious would be better off if it discontinues Rum Raisin and would be worse off if it discontinues Blue Moon.
C) Delicious would be better off if it discontinues both products.
D) Delicious would be worse off if it discontinues either product.

Answers

Answer:

The correct choice here is A)

Delicious would be worse off if it discontinues Rum Raisin and would be better off if it discontinues Blue Moon.

Explanation:

Lets look at the figures:

Step I

Calculate the Total Costs for each product.

Total Cost (TC) = Fixed Cost + Variable Cost

TC for Rum Raisin =

$246,000+ $468,000

= $714,000

TC for Blue Moon =

$219,000 + $ 364,000

= $ 583 000

Step II

The business estimates that it can eliminate it's Fixed cost to a certain degree. Lets look at each before we make a decision.

New TC for each business is given as below:

New TC for Rum Raisin if 75% of Fixed Cost is eliminated =

$246,000+ ($468,000 x 25%)

= $246,000 + $117,000

New TC for Rum Raisin Ice Cream = $363,000

New TC for Blue Moon if 70% of it's Fixed Cost is removed =

$246,000+ ($468,000 x 30%)

= $246,000 + $140,400

New TC for Blue Moon Ice Cream = $386,400

The company Delicious is better off eliminating the product with the highest TC all other factors remaining accounted for and taken into consideration.

The product which must go is Blue Moon Ice Cream.

Cheers!

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