Your uncle will sell you his bicycle shop for $170,000, with "seller financing," at a 6.0% nominal annual rate. The terms of the loan would require you to make 12 equal end-of-month payments per year for 4 years, and then make an additional final (balloon) payment of $50,000 at the end of the last month. What would your equal monthly payments be?
A. $2,362.52
B. $3,068.20
C. $2,792.07
D. $3,681.84
E. $3,129.57
Answer: B
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Use the value chain as a framework to explain how the competitive advantage of differentiation can create products and/or services that are highly valued by customers.
What will be an ideal response?
Under which accounting method are revenues and expenses recognized in the same accounting period that cash receipts and payments occur?
A) Under the cash basis of accounting B) Under the accrual basis of accounting C) Under the percentage of sales method of accounting D) Under the direct write-off method of accounting
Provide an example of an organization that achieves competitive advantage through experience differentiation. Explain
What will be an ideal response?
Last year Rennie Industries had sales of $270,000, assets of $175,000 (which equals total invested capital), a profit margin of 5.3%, and an equity multiplier of 1.2. The CFO believes that the company could reduce its assets by $51,000 without affecting either sales or costs. The firm finances using only debt and common equity. Had it reduced its assets by this amount, and had the debt/total invested capital ratio, sales, and costs remained constant, how much would the ROE have changed? Do not round your intermediate calculations.
A. 4.08% B. 3.03% C. 4.52% D. 3.07% E. 4.04%