A loan of $36,000 is paid off in 36 payments at the end of the each month in the following way:

Payments of $900 are made at the end of the month for the first 12 months.

Payments of $900 + x are made at the end of the month for the second 12 months.

Payments of $900 + 2x are made at the end of the month for the last 12 months.

What should x be if the nominal monthly rate is 12.6%?

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Tod ThielLv2

27 Feb 2019

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Say you bought a house for $325,000 with 20% down, and financed it from a bank for a 15-year term at 3.25% interest per year compounded monthly. If you paid an extra $900 every year (end of 12th month) along with the regular month-end payments, which will be true from the following?

		A- You will be able to cut off 72 payments from the loan.
		B- You will have to make 170 payments of $1,826.94
		C- You will have to make 171 monthly payments of $1,826.94, $900 yearly payments for 14 years, and make a 172nd payment at the end of the 172nd month of $402.37.
		D- None of the above are true.

lilaccamel560

Jake Marley, owner of Marley wholesale, is negotiating with thebank for a $200,000, 90 %u2013day, 12 percent loan effective July 1 of the current year. If the bankgrants the loan, the proceeds will be $194,000, which Marleyintends to use on July 1 as follows: Pay accounts payable,$150,000; purchase equipment, $16,000; add to bank balance,$28,000. The current working capital position of Marley wholesale,according to financial statements as of June 30, is as follows:
Cash inbank%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026.. $20,000
Receivables (net of allowance for doubtful accounts) 160,000
Merchandiseinventory%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026 190,000
Total currentassets%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026. $270,000
Accounts payable (including accrued operatingexpenses 150,000
Workingcapital $120,000
The bank loan officer ask Marley to prepare a forecast of hisreceipts and cash payments for the next three months to demonstrate thatthe loan can be repaid at the end of September. Marley has made thefollowing estimates, which are to be used in preparing athree-month cash budget: Sales (all on account) for July, $300,000:August, $360,000; September, $270,000; and October, $200,000. Pastexperience indicates that 80 percent of the receivables generatedin the second month following the sale, and 1 percent will proveuncollectible. Marley expects to collect $120,000 of the June 30receivables in July and the remaining $40,000 in August. Cost ofgoods sold consistently has averaged about 65 percent of sales.Operating expenses are budgeted at $36,000 per month plus 8 percentof sales. With the exception of $4,400 per month depreciationexpense, all operating expenses and purchases are on account andare paid in the month following their incurrence. Merchandiseinventory at the end of each month should be sufficient to coverthe following month%u2019s sales.
Instructions
a. Prepare a monthly cash budget showing estimated cash receipts and cash paymentsfor July, August, and September, and the cash balance at the end ofeach month. Supporting schedules should be prepared for estimatedcollections on receivables, estimated merchandise purchases, andestimated payments for operating expenses and of accounts payablefor merchandise purchases.
b. On the basis of this cash forecast,write a brief report to Marley explaining whether he will be ableto repay the $200,000 bank loan at the end of September

greenmoose823

Paul purchased a new television and VCR on September 1,1990, for$1,200 and used his father's MasterCard to pay for it. His fatheragreed to allow Paul to use the card based on his paying thebalance within one year. The nominal interest rate on the card is24% compounded monthly and reÂ¬quires equal monthly payments. Aftersix months of paying for these purchases, Paul decided, on March1,1991, that he also could purchase a stereo for $800. Paul'sfather still insisted that Paul pay the total balance within oneyear from the date of the first purchase. Assume that the newpurchase is to be immediately applied to the unpaid balance andPaul made the payment due at the end of March before purchasing thestereo. What is the amount of the payments for the first six monthsand the amount of the payments for the second six months? Usestandard consumer loan calculations.

bluecrow838

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