In: Finance
1a.
A business had accounts receivable of $124,800 at the end of 2008 and $145,700 at the end of 2009. Calculate the percent change (rounded to the nearest tenth of a percent).
a 14.3% |
||
b |
16.7% |
|
c |
negative 14.3% |
|
d |
negative 16.7% |
1b.
Which type of statement is for a period of time: Income statement, or balance sheet?
a |
Balance Sheet |
|
b |
Income Statement |
|
c |
Both |
|
d |
Neither |
1c.
You are thinking about getting a 40-year $165,000 mortgage loan at 7.75% interest. How much interest would you pay over the 40 years?
a |
$370,881.60 |
|
b |
$13,397.04 |
|
c |
$535,881.60 |
|
$1,116.42 |
1a. b. 16.7%
Change Percentage = (Account receivable at 2009 – Account Receivable at 2008) / Account Receivable at 2008
Change Percentage = ($145,700– $124,800) / $124,800
Change Percentage = 16.75%
Hence, Correct option is b. 16.7%
1b. c. Both
Income statement and Balance Sheet both are for period of time
Hence, Correct option is c. Both
1c. Correct option is a. $370,881.60
Finding payment per period: |
|
Asset Value = A |
$165,000.00 |
Down Payment = DP = |
$0.00 |
P = Principal Loan = (A - DP) = |
$165,000.00 |
R = (Given Rate / No. of Payment in a Year) = 7.75%/12 = |
0.645833% |
N = Numbers of payment = 40 x 12 |
480 |
PMT = Payment = P x R x (1+R)^N / ((1+R)^N - 1) = |
1,116.42 |
Formula for calculating payment (working) |
|
PMT = P x R x (1+R)^N / ((1+R)^N - 1) |
|
PMT = 165000*(7.75%/12)*(1+(7.75%/12))^480/((1+(7.75%/12))^480-1) |
|
PMT = $ 1,116.42 (Rounding to nearest cent or two decimal places) |
|
Total amount paid over life of the loan = PMT x N = |
$535,881.60 |
Total Interest paid = Total amount paid over life of the loan - Principal loan = |
$370,881.60 |
Hence, Correct option is a. $370,881.60