Given the following information, what is the total balance of short-term liabilities? Credit Card Account: $2,500 Student Loan Account: $45,000 Auto Loan: $25,000 Monthly Rent Payment: $1,250 answer choices include: $17,500 $2,500 $17,750 Cannot determine based on information above
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Given the following information, what is the total balance of short-term liabilities? Credit Card Account: $2,500 Student Loan Account: $45,000 Auto Loan: $25,000 Monthly Rent Payment: $1,250
answer choices include:
$17,500
$2,500
$17,750
Cannot determine based on information above
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- Cost of Bank Loan On March 1, Minnerly Motors obtains a business loan from a local bank. The loan is a 25,000 interest-only loan with a nominal rate of 11%. Interest is calculated on a simple interest basis with a 365-day year. What is Minnerlys interest charge for the first month (assuming 31 days in the month)?Enter your dollar answers rounded to the nearest two cents and precede numbers that are less than zero (0) with a minus sign (–).) Buy On Time or Pay Cash Cost of Borrowing 1. Terms of the loan a. Amount of the loan $10,000.00 b. Length of the loan (in years) 5 c. Monthly payment $188.70 2. Total loan payments made ($ per month months) $ 3. Less: Principal amount of the loan $ 4. Total interest paid over life of loan $ 5. Tax considerations: – Is this a home equity loan? no – Do you itemize deductions on your federal tax return? yes 6. What federal tax bracket are you in? 35% 7. Taxes saved due to interest deductions ($ x %) $ 8. Total after-tax interest cost on the loan $ Cost of Paying Cash 9. Annual interest earned on savings (6% x ) $ 10. Annual after-tax interest earnings ($ x %) $ 11. Total after-tax interest earnings…A man approaches a Loan Agency for P100,000 to be paid in 24 monthly instalments. The agency advertises an interest rate of 1.5% per month. They proceed to calculate the amount of his monthly payment as follows: Amount requested P100,000 Credit investigation P500 Credit risk insurance P1,000 Total P101,500 Interest = P101,500(24)(0.015) = P36,540 Total owed = P36,540 + P101,500 = P138,040 Payment = P138,040 / 24 = P5,751.67 What is the effective rate of interest of the loan?
- Use the unpaid balance method to find the finance charge on the credit card account. Last month's balance, the payment, the annual interest rate, and any other transactions are given. Last month's balance, $400 Payment, $350 Interest rate, 16.7% Bought plane ticket, $100 Bought luggage, $135 Paid hotel bill, $195Discount Mart borrows $400,000 on November 1, 2020 with a 6-month loan that has an annual interest rate of 6% payable when the loan is due. What amounts related to this loan will Discount Mart report on its financial statements for the year ended December 31, 2020? Select one: a. Income statement: $4,000 interest expense; Balance sheet: $400,000 loan payable and $4,000 interest payable; Cash flow statement: $400,000 inflow b. Income statement: $4,000 interest expense; Balance sheet: $400,000 loan payable; Cash flow statement: $396,000 inflow c. Income statement: 0; Balance sheet: $400,000 loan payable $4,000; Cash flow statement: $400,000 net inflow d. Income statement: $4,000 interest expense; Balance sheet: $400,000 loan payable and $4,000 interest payable; Cash flow statement: $396,000 inflowA local business received a $45,000 loan at 4.95% compounded semi-annually. The business settled the loan with quarterly payments of $650. a. How many payments are required to settle the loan? Round up to the nearest whole payment. a) 156 b) 155 c) 158 d) 157 b. What was the interest portion of payment 52? a) $469.94 b) $460.16 c) $473.64 d) $466.13 c. What was the size of the final payment? a) $7.23 b) -$2.24 c) $4.07 d) $11.96
- A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $2,000 per month for the next 2 years and then $1,000 per month for 2 years after that. If the bank charges a 9% annual percentage rate (APR) it would be willing to lend to the business owner . A) $60,480 B) $63,598 C) $65,143 D) $62,074PLEASE TYPE IT AND NOT HANDWRITTEN You purchased an appliance in a certain appliance center worth P35,000 using your credit card. The credit card company charges a monthly interest rate of 4% and a minimum payment of 5%. Assuming you only pay the minimum amount at the end of the month, what is the remaining balance after 6 payments?A customer bought a used car for $24,650. The customer’s down payment was $6,000 and the repayment will be $414 per month, for 48 months. What are the following: (Show your calculations) a) Amount financed?b) Total installment price? c) Finance charge?
- Bank A pays 5% interest compounded annually on deposits, while Bank B pays 4.8% compounded monthly. Based on the EAR (or EFF%), which bank should you use? Describe how you reach your final answerYou purchased an appliance in a certain appliance center worth P35,000 using your credit card. The credit card company charges a monthly interest rate of 4% and a minimum payment of 5%. Assuming you only pay the minimum amount at the end of the month, what is the remaining balance after 6 payments?First America Bank’s monthly payment charge on a 48-month, $20,000 loan is $488.26. U.S. Bank’s monthly payment fee is $497.70 for the same loan amount. What would be the APR for an auto loan for each of these banks? Months 48 Loan amount $ 20,000.00 First America Bank's monthly payment charge $ 488.26 U.S. Bank's monthly payment fee $ 497.70 Required: Using the information above please answer the following: What would be the finance charge amount with First America bank? What would be the APR for an auto loan with First America bank? What would be the finance charge amount with U.S. bank? What would be the APR for an auto loan with U.S. bank?
