Brady and Sons uses accounts receivable as collateral to borrow money for operations and payroll when revenues are low. If the company borrows $300,000 now at an interest rate of 12% per year, compounded monthly, and the rate increases to 15% per year, compounded monthly after 4 months, how much will the company owe at the end of 1 year?
What will be an ideal response?
Rates are 1%, increasing to 1.25% per month
F = 300,000(F/P,1%,4)(F/P,1.25%,8)
= 300,000(1.0406)(1.1045)
= $344,803
You might also like to view...
What fuel system component is used in a vehicle equipped with a diesel engine that is not usually used on the same vehicle when it is equipped with a gasoline engine?
A) Fuel supply line B) Fuel filter C) Fuel return line D) Water-fuel separator
A telescoping gauge is normally used to measure ________
A) Cam bores B) Outside diameters larger than 5/16 inch C) Cam lobes D) Bearing thickness
Match each part of the electrical system with its correct function below.
A. sends electricity from the battery to a small starter motor B. produces electricity to keep the battery charged and runs the electrical circuits C. sends power to secondary vehicle control systems D. provides sparks for each cylinder to ignite the fuel-air mixture
Two technicians are discussing steering systems. Technician A says that the major components of a steering system are: steering wheel, linkage, and the dash support assembly. Technician B says that the major components include the steering wheel, linkage, steering knuckle, and gearing. Who is correct?
A. Technician A B. Technician B C. Both A and B D. Neither A nor B