subject
Business, 19.06.2020 00:57 briizy

Barry Rich is a business major at State U. He will be graduating this year and is planning to start a consulting business. He will need to purchase computer equipment that costs $27,000. He can borrow the money from the local bank but will have to make annual payments of principal and interest. To determine the appropriate discount factorfs) using tables, click here to view Tables I, Il, III, or IV in the appendix. Alternatively, if you calculate the discount factor(s) using a formula, round to six (6) decimal places before using the factor in the problem. Required
a. Compute the annual payment Barry will be required to make on a $27,000, four-year, 5 percent loan Round your answer to the nearest dollar amount.)
b. If Barry can afford to make annual payments of $5,800, how much can he borrow? (Round your answer to the nearest dollar amount.)

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 03:10
Transactions that affect earnings do not necessarily affect cash. identify the effect, if any, that each of the following transactions would have upon cash and net income. the first transaction has been completed as an example. (if an amount reduces the account balance then enter with negative sign preceding the number e.g. -15,000 or parentheses e.g. (15, cash net income (a) purchased $120 of supplies for cash. –$120 $0 (b) recorded an adjustment to record use of $35 of the above supplies. (c) made sales of $1,370, all on account. (d) received $700 from customers in payment of their accounts. (e) purchased equipment for cash, $2,450. (f) recorded depreciation of building for period used, $740. click if you would like to show work for this question: open show work
Answers: 3
question
Business, 22.06.2019 11:40
Jamie is saving for a trip to europe. she has an existing savings account that earns 3 percent annual interest and has a current balance of $4,200. jamie doesn’t want to use her current savings for vacation, so she decides to borrow the $1,600 she needs for travel expenses. she will repay the loan in exactly one year. the annual interest rate is 6 percent. a. if jamie were to withdraw the $1,600 from her savings account to finance the trip, how much interest would she forgo? .b. if jamie borrows the $1,600 how much will she pay in interest? c. how much does the trip cost her if she borrows rather than dip into her savings?
Answers: 1
question
Business, 22.06.2019 12:30
howard, fine, & howard is an advertising agency. the firm uses an activity-based costing system to allocate overhead costs to its services. information about the firm's activity cost pool rates follows: stooge company was a client of howard, fine, & howard. recently, 7 administrative assistant hours, 3 new ad campaigns, and 8 meeting hours were incurred for the stooge company account. using the activity-based costing system, how much overhead cost would be allocated to the stooge company account?
Answers: 1
question
Business, 22.06.2019 15:20
Kelso electric is debating between a leveraged and an unleveraged capital structure. the all equity capital structure would consist of 40,000 shares of stock. the debt and equity option would consist of 25,000 shares of stock plus $280,000 of debt with an interest rate of 7 percent. what is the break-even level of earnings before interest and taxes between these two options?
Answers: 2
You know the right answer?
Barry Rich is a business major at State U. He will be graduating this year and is planning to start...
Questions
question
Spanish, 05.12.2020 23:50
question
Law, 05.12.2020 23:50
question
Mathematics, 05.12.2020 23:50
question
Biology, 05.12.2020 23:50
question
Business, 05.12.2020 23:50
question
Mathematics, 05.12.2020 23:50
Questions on the website: 13722360