You are considering prepaying an installment loan you took out several months ago. The lender has provided you with the following information
remaining months to pay 10
loan payoff $851.29
monthly payments $95.
00
balance due in last month of the loan $95.00
remaining interest on the loan $98.71
You believe you can earn an annual after-tax rate of rate of 16% on your investments in each of the next ten months (1.33% a month). Given the above information, you should
A)
prepay the loan; your net gain will be about $35.62.
B)
not prepay the loan; your net gain will be about $35.62.
C)
prepay the loan; your net gain will be about $14.80.
D)
not prepay the loan; your net gain will be about $14.80.
A
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Exhibit 20-5 The Baltimore, Inc entered into a five-year lease with the Waugh Chapel Company on January 1, 2016. Baltimore, the lessor, will require that five equal annual payments of $25,000 be made at the beginning of each year. The first payment will be made on January 1, 2016. The lease contains a bargain purchase option price of $12,000, which the lessee may exercise on December 31, 2020
The lessee pays all executory costs. The cost of the leased property and its normal selling price are $95,000 and $118,236, respectively. Collectibility of the future lease payments is reasonably assured, and the lessor does not expect to incur any future costs related to the lease. Present value factors for a 7% Present value of $1 for n = 1 0.934579 Present value of $1 for n = 5 0.712986 Present value of an ordinary annuity for n = 5 4.100197 Present value of an annuity due for n = 5 4.387211 ? Refer to Exhibit 20-5. If Baltimore requires a 7% annual return, what is the correct amount of interest revenue to be recognized by Baltimore for 2016 (round the answer to the nearest dollar)? A) $7,774 B) $7,175 C) $6,527 D) $5,928
State the benefits that can be claimed under workers' compensation. How are these compensation claims filed?
What will be an ideal response?
According to Christensen, what is the reason that sustaining technologies do not produce innovation?
a. They improve the performance of existing products rather than replace them b. They need more investment c. They are obsolete d. All of the above
Adam plans to invest $1500 today in a mutual fund. If he earns 12 percent interest compounded monthly, to what amount will his investment grow in 20 years?
A. $17,289 B. $15,897 C. $16,339 D. $12,450 E. $18,546