Question

To
pay for shipment of T-shirts the owner of hot T-shirts shop borrow
$8000 at 9 3/4%interest and for a period of 60 days. What is the
simple interest on this loan what is the total amount that needs to
be paid to the loan company

Answer #1

1. Suppose that P dollars in principal is invested for t years
at the given interest rates with continuous compounding.Determine
the amount that the investment is worth at the end of the given
time period.
P = $6000, t = 14 years
a.) 3% interest
b.) 4% interest
c.) 4.5% interest
Bethany needs to borrow $11,000. She can borrow the money at
4.5% simple interest for 4 years OR she can borrow at 5% with
interest compounded continuously for 4...

?You plan to borrow ?$50,000 from the bank to pay for
inventories for a gift shop you have just opened. The bank offers
to lend you the money at 11 percent annual interest for the 9
months the funds will be needed? (assume a? 360-day year).
a.??Calculate the annualized rate of interest on the loan.
b.??In? addition, the bank requires you to maintain a 16 percent
compensating balance in the bank. Because you are just opening
your? business, you do...

A loan of $7,000 is taken out today, March 9, 2017.
What amount will pay off the debt on July 21, 2017 if the interest
rate is 5.1%:
compounded continuously? Use exact time and exact
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compounded monthly and simple interest is paid for part
of a period. Use Banker’s Rule for the simple
interest.

Bill’s Stereo Shop wants to borrow $50,000 from April
1st. until April 30th. It sales equipment in
an area where its typical customer is a member of the armed
services or a veteran. Prepare a cash budget for Bill’s Stereo Shop
for April using the following data:
March 30th. cash balance $5,000
Merchandise purchases: $50,000 in February, and $55,000 in
March. (Bill’s history suggests that 50% of purchases is paid in
cash 30 days after purchase and 50% is paid...

2. Suppose you borrow $20,000 at an 18 percent simple interest
but must repay your loan in 12 equal monthly payments.
a. Find the APR for this loan.
b. What is the corresponding EAR?
3. Suppose you deposit $20,000 in a savings account. After 210
days, you withdraw your funds. If the bank paid you $340 in
interest for the 210-day period, what is your APY?
4. Suppose that the house of your dreams costs $1,200,000. You
manage to scrap...

You plan to borrow $30,000 from the bank to pay for inventories
for a gift shop you have just opened. The bank offers to lend you
the money at 10 percent annual interest for the 6 months the funds
will be needed.
a. Calculate the effective rate of interest on the loan.
b. In addition, the bank requires you to maintain a
compensating balance of 15 percent in the bank. Because you are
just opening your business, you do not...

You are the loan officer of a bank. The ABC Company wants to
borrow $100,000 and repay it with four equal annual payments (first
payment due one year from now). You decide that the ABC Company
should pay 0.10 per year on the loan.
a. What is the annual payment?
b. Complete the following debt amortization table:
Period
Amount owed(beginnig of yr)
Interest
Principal
Amount owed(end of yr)
1
$100,000
2
3
4
c. What would be the annual payment...

You plan to borrow $10 comma 000 from the bank to pay for
inventories for a gift shop you have just opened. The bank offers
to lend you the money at 13 percent annual interest for the 3
months the funds will be needed (assume a 360-day year).
a. Calculate the annualized rate of interest on the loan. b. In
addition, the bank requires you to maintain a 20 percent
compensating balance in the bank. Because you are just opening...

Today you borrow $13,500 to pay for your expected college costs
over the next 4 years, including a master’s degree. 2 years from
now, you determine that you need an additional $3,200 so you borrow
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making annual payments of $2,900. You will make these payments for
10 years. Both loans earn an interest of 5.4% compounded...

1.) Super-Tee Co. plans to sell 12,000 T-shirts at $16 each in
the coming year. Product costs include:
Direct materials per shirt $5.75
Direct labor per shirt 1.25
Variable overhead per shirt .60
Fixed overhead in total $43,000
What is the company's contribution margin?
a.)
$9.00
b.) $4.82
c.) $10.25
d.) $8.40
2.) Super-Tee has a contribution margin of 25%. How many
T-shirts (rounded to the nearest shirt) must be sold in order for
the company to break even?
a.)...

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