Answer:samples
Explanation:All of the other answers are indeed marketing but samples are just a way of seeing other people views on whatever your giving samples for
Sales promotion basically mean the process of persuading or enticing some targeted potential customer to buy the company product.
Sales promotional activities are designed to be used as a short-term tactic to boost the company sales on a product.
Sales promotion are used as a method of building long term customer relationship and loyalty.
Below are some sales promotion examples used in boosting product awareness in a targeted location
a. Giving Samples and Coupons
b. Direct marketing of product (Telemarketing)
c.Referral discounts.
d. contests and giveaways
In conclusion, Catalogs is not an example of sales promotion
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Suppose that in a certain country called Litigia, patients do not have the legal right to sue their medical insurance providers.
Now, suppose, however, that Litigia's government passes legislation that no longer protects medical insurance providers from lawsuits, so that patients in Litigia can now sue their insurance providers.
After the legislation is passed, what will happen to the price of medical insurance and the number of medical insurance policies sold?
The price will decrease, and the number of medical insurance policies sold will also decrease.
The price will increase, while the number of medical insurance policies sold will decrease.
The price will decrease, while the number of medical insurance policies sold will increase.
The price will increase, and the number of medical insurance policies sold will also increase.
C) The price will decrease, while the number of medical insurance policies sold will increase.
What is legislation?Legislation is the process by which local, state, or federal legislatures draft and enact laws. It is occasionally used to refer to municipal ordinances as well as the rules and regulations passed by administrative bodies while they were performing their delegated legislative duties.
The legislation involves participation from the executive branch in addition to action by a legislative body. Unless the executive's veto is overridden by a large enough majority in each house of the legislature, legislation cannot become law without the executive's concurrence. Additionally, the executive's job involves much more than just consent or opposition.
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20. The shipment of goods or rendering of services to a foreign buyer, located in a
foreign country is:
Importing
Exporting
Foreign Exchange
Importing and Exporting
Which three things does money help people do in an economy? (Pick three)
-Exchange commodities
-measure the value of commodities
-avoid inflation
-store value
-hide the price of a commodity
-increase inflation
-remove value
Answer:
Exchange commodities
store value
measure the value of commodities
An employee works 52 hours (52 - 40 were overtime hours) during a workweek in December of 2021. He earns $11,000/month, with his employer paying 1.5 times the regular rate of pay for overtime hours. To date, he has earned $144,200 during the year. He has requested that his employer withhold 8% of gross pay, which is to be contributed to a 401(k) plan.
The employee's gross pay for the workweek in December 2021 would be $15,950, and the net pay after the 8% 401(k) contribution would be $14,674.
To calculate the employee's gross pay for the workweek in December 2021, we need to determine the regular pay and the overtime pay separately.
Given; Regular rate of pay = $11,000/month
Overtime hours worked = 52 - 40 = 12 hours
Overtime pay rate = 1.5 times the regular rate of pay
The regular pay for 40 hours (assuming the employee worked the regular 40 hours in the workweek) would be;
40 hours x $11,000/month ÷ 4 weeks = $11,000
The overtime pay for 12 hours (the overtime hours worked) would be;
12 hours x 1.5 x $11,000/month ÷ 4 weeks = $4,950
The total gross pay for the workweek would be the sum of regular pay and overtime pay;
$11,000 + $4,950 = $15,950
The employee has requested that 8% of the gross pay be withheld for the 401(k) plan;
8% x $15,950 = $1,276
The net pay for the workweek would be the gross pay minus the 401(k) contribution;
$15,950 - $1,276 = $14,674
Therefore, $14,674 is to be contributed to a 401(k) plan.
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A Market share is usually stated as a
Answer:
stock
Explanation:
a stock is a a share of a company
Discuss which of the Sustainable Development Goals you believe are most relevant to these companies, their industries and the countries in which they operate. Discuss the extent to which these SDGs were addressed, explicitly or implicitly, in the CSR/Sustainability reports of your companies:
• Demonstrate critical thinking and analysis to identify key SDGs and explain why these are particularly relevant to each company
• Describe the extent to which these SDGs have been addressed (explicitly or implicitly) and the effectiveness of this reporting
The Sustainable Development Goals (SDGs) that are most relevant to a company and its industry can be determined by their operations, impact on the environment, and contribution to social and economic development. \
Which companies would prioritize SDG 7?Companies in the energy sector may prioritize SDG 7 - Affordable and Clean Energy, while those in the food industry often focus their efforts on SDG 2 - Zero Hunger.
The SDGs addressed in a company's CSR/Sustainability reports vary, with some explicitly stated and others only referenced implicitly. Consequently, effective reporting depends on how clear, transparent, and accountable a company is towards achieving these goals through their actions and outcomes.
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Weller Company acquires a delivery truck at a cost of $42,000. The truck is expected to have a residual value of $9,000 at the end of its 4-year useful life. Compute annual depreciation expense for the first and second years using the straight-line method
Answer:
The annual depreciation = $8250
Explanation:
based on the formula (cost-salvage value)/useful life
The annual depreciation using straight line method:
($42,000-$9000)/4 = $8250
A Discussion Question should be answered in 2 to 3 paragraphs. and then respond to two of your peers with meaningful responses.
How can parties that have unequal bargaining power negotiate meaningfully, without one party taking advantage of the other? Have you ever negotiated with someone who had more bargaining power than you? What were your strategies during the negotiation? Did you obtain your goal by the conclusion of the negotiation?
Relationships must be cultivated over time in order to get effective negotiation results. Good negotiators are therefore continually seeking ways to improve the situation and their position.
In addition to helping you reach a negotiated agreement with a challenging counterpart, negotiation tactics that encourage a mutual gains approach at the bargaining table may also help you uncover ways to add value and widen the resource distribution pie.
A smart negotiator may create a deal that most nearly resembles her own and her counterpart's demands while establishing a rapport with her counterpart if they are aware of the areas of agreement where they and their counterpart are in accord.
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5.6 Last month Quick Industries produced 900 units. This month they produced 1,264 units. What is the rate of change in production? a. 29.8% b. 32.8% c. 40.4% d. 60%
Answer: C. 40.4%
Explanation:
To find the rate of change in production, we can use the following formula:
Rate of change = (New value - Old value) / Old value * 100
Where,
Old value = Production of last month = 900
New value = Production of this month = 1264
Substituting the values in the formula,
Rate of change = (1264 - 900) / 900 * 100= 364 / 900 * 100= 0.404 * 100= 40.4%
Therefore, the rate of change in production is 40.4%, which is an option (c). I hope that this answer has helped you!
Answer:
The correct answer is C.
Explanation:
The rate of change in production is: (1264 - 900) / 900 = 0.404 or 40.4%. So, the correct answer is c. 40.4%
The total assets of Berber Company are $190,000 and its owner's equity is $89,000. What is the amount of its total liabilities?
Answer:
$101,000
Explanation:
As per the accounting equation, assets are equal to liabilities plus equity.
I.e.,
Assets = Liabilities + Equity
For Berber Company, Assets are $190,000: liabilities = $89,000
Therefore,
$190,000 = $89,000 + Equity
Equity = $190,000 -$89,000
Equity = $101,000
When you purchase a new car, what kind of tax will you usually pay?
A. Property tax
B. Payroll tax
C. Sales tax
D. Income tax
When you purchase a new car, what kind of tax will you usually pay is: C. Sales tax.
What is sales tax?Sales tax can be defined as the tax amount that is included in the selling price or cost price of the goods you purchase by the seller.
When you purchase a product ,the type of tax will you usually pay is called Sales tax.
This sales tax is often calculated as a percentage after purchasing a product at the point of purchase.
Inconclusion When you purchase a new car, what kind of tax will you usually pay is: C. Sales tax.
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Determine fixed cost, F; average variable cost, AVC; average cost, AC; marginal cost, MC; and average fixed-cost, AFC. The fixed cost function (F) is
Answer:
Fixed Cost Function = Average Cost - Average Variable cost
Explanation:
A fixed cost is the one which does not changes with the level of production. These cost are irrelevant to number of units production. It is not affected by the units produced and sold. The change in fixed cost does not affect the marginal cost. The marginal cost is the variable cost that is incurred by producing one more unit. These costs are affected by the level of production.
An employee from another department will join your team next week. She requested the transfer because she felt her work was becoming predictable and monotonous. Her performance reports show she has made good contributions to programming projects but needs to improve her presentation skills.
It appears that next week, an employee from another department will be joining your team.
She requested the transfer due to feeling that her previous work was becoming predictable and monotonous. According to her performance reports, she has made valuable contributions to programming projects, demonstrating her strong technical abilities.
However, an area where she could improve is her presentation skills. As she transitions to your team, it would be beneficial to provide her with opportunities to engage in diverse tasks and challenges, ensuring she stays motivated and experiences professional growth.
Additionally, offering resources and training in presentation skills can help her strengthen this aspect of her work. By doing so, she will not only become a more well-rounded team member but will also contribute effectively to the overall success of your team. Remember to welcome her warmly and provide any necessary support during this transition period.
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Advantages to free-trade agreements (FTAs) are that they increase trade barriers (both tariff and non-tariff barriers), open up market to exporters, and increase jobs domestically. True orFalse
Answer:
False
Explanation:
Free trade agreements are economic cooperation deals between two or more countries. In the agreement, the countries agree to put in measures that will promote trade between them. Free trade agreements are mostly about tariffs and duties that countries impose on each other imports and exports.
The purpose of the free trade agreement is for participating countries to review the tariffs to increase trade among participating countries. In most cases, a free trade agreement resorts to reduced tariffs and duties.
Can putting an application form for a new job in with the business mail be considered an example of theft or fraud at work?
This stands unprofessional more than theft although technically if the business exists paying for your private postage you stand in theory stealing from your employer.
What is fraud ?
Fraud exists as a deliberate act (or failure to act) to acquire an unauthorized benefit, either for oneself or for the institution, by utilizing deception or false suggestions or suppression of truth or other unethical standards, which exist believed and relied upon by others. The definition of an e-mail exists as a message sent from one computer to another over the Internet, utilizing a set web mail server address.
This stands unprofessional more than theft although technically if the business exists paying for your private postage you stand in theory stealing from your employer. It would also look bad if the organization to whom you had applied for the new job had detected that your envelope had been spent for by your employer and they may question your honesty and innocence as a person.
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Explain BUY and RENT (of housing) in simple terms
What are some ways you can keep your saw sharp while in school and then also in your profession
Keeping your saw sharp in school and in your profession means continuously developing your skills and staying up-to-date with industry trends and advancements.
How to keep your saw sharp while in school and then also in your professionHere are some ways to do so:
Attend conferences and seminars: Attending conferences and seminars related to your field will give you the opportunity to learn from industry experts, network with other professionals, and stay up-to-date on the latest developments in your industry.
Participate in online courses and webinars: Taking online courses and webinars is an excellent way to learn new skills and techniques.
Join professional organizations: Joining a professional organization related to your field can provide you with opportunities to network with other professionals
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After issuing its financial statements, a company discovered that its beginning inventory was overstated by $150,000. Its tax rate is 25%. As a result of this error, net income was:
Answer:
Understated by $112,500
Explanation:
Calculation to determine the Net income
Using this formula
Net income=Overstated beginning inventory×(1-Tax rate)
Let plug in the formula
Net income=$150,000 x (1-25%)
Net income=$150,000×.75
Net income= $112,500 Understated
Therefore As a result of this error, net income was:Understated by $112,500
What should you do to streamline the purchasing process once the customer approves an estimate?
You should copy it to a purchase order.
I hope this helps!!!
Sourcing goods and services from locations around the globe is known as __________.
Answer:
Global Sourcing
Explanation:
Global sourcing is the practice of sourcing from the global market for goods and services across geopolitical boundaries.
If the effect of the debit portion of an adjusting entry is to increase the balance of an asset
account, which of the following describes the effect of the credit portion of the entry?
When the debit portion of an adjusting entry is used to increase the balance of an asset account, the credit portion of the entry will decrease the balance of another account, which will be either a liability account or an equity account.
What is the adjusting entry?Adjusting entries are journal entries that are made at the end of an accounting period to modify the accounts' balances. They are done to update and verify revenue and expense accounts' accuracy, as well as to adjust the balance sheet accounts for adjustments that have yet to be recorded.When should adjusting entries be made?Adjusting entries are typically made at the end of an accounting period. For example, adjusting entries may be needed if a company's insurance premiums have been paid in advance, or if a company has earned revenue but has not yet received payment.Adjusting entries are critical in determining the correct profit and loss as well as the balance sheet, which is why they must be accurate and complete.Adjusting entries are required for each financial statement's following types:Income Statement - revenue and expense accounts are adjusted.Balance Sheet - asset, liability, and equity accounts are adjusted.How are adjusting entries made?Adjusting entries are made with the following steps:Step 1: Determine the transaction or event that necessitates an adjustment. Step 2: Determine which accounts are affected by the transaction or event. Step 3: Decide whether each account is to be debited or credited. Step 4: Make the necessary adjusting journal entries.
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Ali is the manager of a successful company. He has many employees under his command. One of his employees in the finance department made a huge mistake which cost the company a lot of money. His name is Saleh. Ali chooses to handle that situation by offending Saleh and yelling at him in front of all his colleagues as a .warning, but he does not fire him
Abeer is a manager in another successful company. She had an employee who made the same mistake. Her name is Sara, but Abeer did not handle the situation as Ali did. Instead, she decided not to yell at Sara for making that mistake and chose to wait until Sara's work .contract finished and did not renew it again
Do you think Ali's decision is legal? And Abeer's ?decision is ethical? And why If you were a manager and faced the same ?problem, what would you do?and why
The fundamental problem with ethical quandary is that it does not have clear-cut answer that complies with ethical standards. People have encountered problems throughout human history, and philosophers have sought to address them.
What is ethics?To "systematise, defend, and suggest notions of good and wrong action," "ethics" or "moral philosophy," a branch of philosophy, is the goal. The philosophical field of axiology encompasses the fields of ethics and aesthetics, both of which are concerned with questions of worth. Assuming that no one has any moral knowledge, moral scepticism, also referred to as moral scepticism, is a group of metaethical ideas. Many moral sceptics also offer the more forceful, modal argument that moral knowledge is impossibly unattainable. Moral scepticism, which denies the existence of knowable and objective moral truths, is particularly opposed to moral realism. The ontology of ethics is concerned with value-bearing elements, i.e., the categories of objects or entities that are addressed in ethical claims.
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Tobias is the manager of a major ski resort in Colorado that is open from October through March. What best describes his terms of employment?
seasonal
full-time
self-employed
entry level
Answer: It's seasonal.
Explanation:
Backcountry Adventures is a Colorado-based outdoor travel agent that operates a series of backcountry huts. Currently, the value of the firm is 3.5$ million. But profits will depend on the amount of snowfall: If it is a good year, the firm will be worth 5 $ million, and if it is a bad year it will be worth 2.5$ million. Suppose managers always keep the debt to equity ratio of the firm at 25% and the debt is riskless.
Calculate the percentage change in the value of the firm, its equity and its debt once the level of snowfall is revealed, but before the firm adjusts the debt level to achieve its target debt to equity ratio. The inital amount of debt is equal to 0.74 and equity 2.96
PLEASE FILL OUT THE TABLE AND PROVIDE PRECISE CALCULATIONS
Good state Bad state
Change in firm value 42.86% -28.57%
Change in equity value
Change in debt value
Answer:
Good state Bad state
Change in firm value 42.86% -28.57%
Change in equity value 26.69% -36.66%
Change in debt value 68.91% -15.54%
Explanation:
The following are given in the question:
Current firm value = $3.5 million
Firm value in good state = $5 million
Firm value in bad state = $2.5 million
Initial debt amount = $0.74 million
Initial equity amount = $2.96 million
Percentage of debt finance = debt to equity ratio = 25%
Percentage of equity finance = 1 - debt to equity ratio = 100% - 25% = 75%
We can therefore calculate as follows:
Percentage change in firm value in good state = [(Firm value in good state - Current firm value) / Current firm value] * 100 = ((5 - 3.5) / 3.5) * 100 = (1.5 / 3.5) * 100 = 42.86%
Percentage change in firm value in bad state = [(Firm value in bad state - Current firm value) / Current firm value] * 100 = ((2.5 - 3.5) / 3.5) * 100 = (-1.00 / 3.5) * 100 = -28.57%
Equity amount in good state = Firm value in good state * Percentage of equity finance = $5 million * 75% = $3.75 million
Percentage change in equity in good state = [(Equity amount in good state - Initial equity amount) / Initial equity amount] * 100 = ((3.75 - 2.96) / 2.96) * 100 = (0.79 / 2.96) * 100 = 26.69%
Equity amount in bad state = Firm value in bad state * Percentage of equity finance = $2.5 million * 75% = $1.875 million
Percentage change in equity in bad state = [(Equity amount in bad state - Initial equity amount) / Initial equity amount] * 100 = ((1.875 - 2.96) / 2.96) * 100 = (-1.085 / 2.96) * 100 = -36.66%
Debt amount in good state = Firm value in good state * Percentage of debt finance = $5 million * 25% = $1.25 million
Percentage change in debt in good state = [(Debt amount in good state - Initial debt amount) / Initial debt amount] * 100 = ((1.25 - 0.74) / 0.74) * 100 = (0.51 / 0.74) * 100 = 68.91%
Debt amount in bad state = Firm value in bad state * Percentage of debt finance = $2.5 million * 25% = $0.625 million
Percentage change in debt in bad state = [(Debt amount in bad state - Initial debt amount) / Initial debt amount] * 100 = ((0.625 - 0.74) / 0.74) * 100 = (-0.115 / 0.74) * 100 = -15.54%
Pearland, Inc. has 9,000 shares of preferred stock outstanding. The preferred stock has a $90 par value, a 14% dividend rate, and is noncumulative. If Pearland has sufficient funds to pay dividends, what is the total amount of dividends that will be paid out to preferred stockholders
Answer: $113400
Explanation:
The total amount of dividends that will be paid out to preferred stockholders will be:
= Number of shares × Par value of preferred stock × Dividend rate
= 9000 × $90 × 14%
= 9000 × $90 × 0.14
= $113400
Therefore, the total amount of dividends that will be paid out to preferred stockholders is $113400
all cash receipts and outflows during an interest period are treated as if they all happened at the same time. what is that time, and what is this rule called?
The end of the time period is the point at which all cash inflows and outflows within an interest period are handled as though they occurred simultaneously; this rule is referred to as the End of the period convention.
Explain the concept of cashflows.Cash flow can be defined as the net amount that flows into and out of your organization over a specific period of time.Typically, this time frame is a month, quarter, or year.
The cash inflow is the total sum of money coming into your business. Positive cash flow occurs when there is more money entering in than leaving the business. Cash inflow includes any profits you make from investments you make. It also includes the money you receive immediately from clients in return for the products or services you render.
When money leaves your company, this is referred to as a cash outflow. When it comes to operations, cash outflow happens when you pay your employees' salary and when you pay your rent.
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One pillar of hypersociality involves focusing on _____, which are based on group behavioral characteristics.
Question 11 options:
a)
product reviews
b)
market segments
c)
theories
d)
tribes
The 4 pillars of Hyper-Sociality, according to Gossieaux and Moran are: ditch market segments, suppose tribes. forget about statistics channels, leverage knowledge networks. let go of company-centricity, emerge as human-centric.
What must hypersocial organizations forget about records channels and concentrate on team of reply choices?Hypersocial groups need to overlook records channels and concentrate on: knowledge networks.
the categories of social networks and on line media that together constitute social commerce: social networking sites, team shopping for platforms, peer-to-peer e-commerce platforms, suggestion internet sites, participatory e-commerce, social advice, user-curated shopping.
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https://brainly.com/question/30019773#SPJ1On March 4 of the current year, Barefoot Bay, Inc. reacquired 5,000 shares of its common
stock at $89 per share. On August 7, Barefoot Bay sold 3,500 of the reacquired shares at $100
per share. The remaining 1,500 shares were sold at $88 per share on November 29.
Required (10 points)
(a) Journalize the transactions of March 4, August 7, and November 29.
(b) What is the balance in Paid-In Capital from Sale of Treasury Stock
on December 31 of the current year?
A. When the company reacquires its own stock from the market, Treasury Stock is debited, and Cash is credited.
B. The balance in Paid-In Capital from the Sale of Treasury Stock on December 31 of the current year will be $40,000.
(a) Journal entries for the given transactions: March 4, 2021: When the company reacquires its own stock from the market, Treasury Stock is debited, and Cash is credited. So, in this transaction, the Treasury Stock account is debited and the Cash account is credited by $445,000.
The journal entry to record this transaction is Treasury Stock $445,000 Cash $445,000 August 7, 2021: When the company sells the treasury stock, the Cash account is debited, Treasury Stock is credited, and the difference between the two is credited to Paid-In Capital from Treasury Stock account.
On August 7, Barefoot Bay sells 3,500 shares at $100 each. Thus, in this transaction, the Cash account is debited by $350,000 ($100 × 3,500), the Treasury Stock account is credited by $311,500 ($89 × 3,500), and Paid-In Capital from the Treasury Stock account is credited by $38,500 [($100 - $89) × 3,500].
The journal entry to record this transaction is: Cash $350,000Treasury Stock $311,500Paid-In Capital from Treasury Stock $38,500 November 29, 2021:When the remaining treasury stock is sold, Cash account is debited, Treasury Stock is credited, and the difference between the two is credited to Paid-In Capital from Treasury Stock account.
On November 29, Barefoot Bay sells the remaining 1,500 shares at $88 each. Thus, in this transaction, the Cash account is debited by $132,000 ($88 × 1,500), the Treasury Stock account is credited by $133,500 ($89 × 1,500), and Paid-In Capital from the Treasury Stock account is credited by $1,500 [($88 - $89) × 1,500]. T
he journal entry to record this transaction is: Cash $132,000Treasury Stock $133,500Paid-In Capital from Treasury Stock $1,500
(b) The balance in Paid-In Capital from the Sale of Treasury Stock on December 31 of the current year will be $40,000 ($38,500 + $1,500).
The Paid-In Capital from the Sale of the Treasury Stock account is credited with the difference between the sale price and the purchase price of the treasury stock sold. The difference is multiplied by the number of shares sold and then credited to Paid-In Capital from the Sale of the Treasury Stock account.
Finally, the balance of this account is transferred to the Retained Earnings account at the end of the year. Here, 3,500 shares were sold for $100 per share, and the remaining 1,500 shares were sold for $88 per share.
Therefore, the total amount credited to the Paid-In Capital from the Treasury Stock account will be $40,000 ($38,500 + $1,500). The balance in Paid-In Capital from the Sale of Treasury Stock on December 31 of the current year will be $40,000.
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You want to buy a house that costs $140,000. You have $14,000 for a down payment, but your credit is such that mortgage companies will not lend you the required $126,000. However, the realtor persuades the seller to take a $126,000 mortgage (called a seller take-back mortgage) at a rate of 5%, provided the loan is paid off in full in 3 years. You expect to inherit $140,000 in 3 years, but right now all you have is $14,000, and you can afford to make payments of no more than $22,000 per year given your salary. (The loan would call for monthly payments, but assume end-of-year annual payments to simplify things.)
Required:
a. If the loan was amortized over 3 years, how large would each annual payment be? Could you afford those payments?
b. If the loan was amortized over 30 years, what would each payment be? Could you afford those payments?
c. To satisfy the seller, the 30-year mortgage loan would be written as a balloon note, which means that at the end of the third year, you would have to make the regular payment plus the remaining balance on the loan. What would the loan balance be at the end of Year 3, and what would the balloon payment be?
Answer:
Kindly check explanation
Explanation:
Given the following :
Cost of house = $140,000
Down payment = $14000
Take back mortgage = 126000 = PV
Rate (r) = 5%
Yearly payment one can afford = 22000
a. If the loan was amortized over 3 years, how large would each annual payment be? Could you afford those payments?
Number of period = 3
Using the relation:
PMT = r(PV) / 1 - (1 + r)^-n
PMT = 0.05(126000) / 1 - 1.05^-3
PMT = 6300 / (1-0.8638375)
PMT = 46,268.23
He won't be able to afford it, as the monthly payment is larger than the affordable amount of $22000
b. If the loan was amortized over 30 years, what would each payment be? Could you afford those payments?
PMT = r(PV) / 1 - (1 + r)^-n
PMT = 0.05(126000) / 1 - 1.05^-30
PMT = 6300 / (1-0.2313774)
PMT = 8196.48
He would be able to afford it, as the monthly payment is lower than the affordable amount of $22000
c. To satisfy the seller, the 30-year mortgage loan would be written as a balloon note, which means that at the end of the third year, you would have to make the regular payment plus the remaining balance on the loan. What would the loan balance be at the end of Year 3, and what would the balloon payment be?
Present value of remaining balance after the 3rd year:
Present Value (PV) = PMT[(1 - (1 + r)^-n) / r]
Where
PMT = periodic payment = 8196.48
r = Interest rate = 5% = 0.05
n = number of periods = 30 - 3 = 27
PV = 8196.48[(1 - (1 + 0.05)^-27) / 0.05]
PV = 8196.48[(1 - (1. 05)^-27) / 0.05]
PV = 8196.48[0.7321516 / 0.05]
PV = 120,021.32
Balloon payment :
120,021.32 + 8196.48 = 128,217.80
a. The annual payment if the Mortgage was amortized over three years is $45,315.96 (Interest + Principal)
The Mortgage payments are not affordable because his affordability funds are limited to $22,000 annually.
Annual Amortization Schedule
Beginning Balance Interest Principal Ending Balance
1 $126,000.00 $5,393.36 $39,922.60 $86,077.35
2 $86,077.35 $3,350.86 $41,965.10 $44,112.18
3 $44,112.18 $1,203.81 $44,112.15 $0.00
b. The annual payment if the Mortgage was amortized over thirty years is $8,116.80 (Interest + Principal)
The Mortgage payments are now affordable with his affordability amount of $22,000 per year.
Annual Amortization Schedule for the first three years:
Beginning Balance Interest Principal Ending Balance
1 $126,000.00 $6,257.79 $1,859.01 $124,141.04
2 $124,141.04 $6,162.68 $1,954.12 $122,186.97
3 $122,186.97 $6,062.70 $2,054.10 $120,132.93
c. Payments made by the end of the third year were $5,867.07 with a balance of $120,132.93.
Data and Calculations:
Cost of house = $140,000
Down payment = $14,000
Mortgage value = $126,000($140,000 - $14,000)
Mortgage interest rate = 5%
Affordable annual payments = $22,000
Thus, the balloon payment is always based on an agreed percentage of the loan, which is not provided here.
Learn more: https://brainly.com/question/16653335 and https://brainly.com/question/14388610
Your parents invested $1000 into an account when you were born. The account has an interest rate of 6% and compounds monthly (12 times per year). Calculate how much the account would be worth on your 20th birthday if no other activity took place.
Answer:
$3,310.20
Explanation:
The applicable formula in this case is
A = P x ( 1 + r )^ n
Where A= amount after 20 years
P is principle amount= $1000
r is interest rate = 6 % or 0.06 per year: monthly interest = 0.06/12
n is number of periods = 12 months x 20 years
A = $1000 x ( 1 + 0.005) ^240
A = $1000x (1.005) ^ 240
A =$1000 x 3.31020447580
A =$3,310.2044