Answer: $337,869.73
Explanation:
Find out the future value of $1,000 given an interest rate of 7.1%. If this amount is less than the future value of $210,000, the difference is added to the final payment to come up with the balloon payment.
The APR needs to be made periodic:
= 7.1% / 12
The $1,000 payment is an annuity so this can be calculated as:
= Annuity * ( ( 1 + rate) ^ number of periods - 1) / rate
= 1,000 * ( ( 1 + 7.1/ 12%) ²⁴⁰ - 1) / 7.1/12%
= $527,297.83
Future value of $210,000
= 210,000 * ( 1 + 7.1/ 12%) ²⁴⁰
= $865,167.56
Balloon payment will be:
= 865,167.56 - 527,297.83
= $337,869.73
Answer:
Explanation idea generation
Answer:
The company WACC is 13.30%
Explanation:
For computing the WACC, first we have to find the weight-age of both debt and equity.
Since in the question, the weightage of debt and equity is given which is equals to
Debt = 30%
And, Equity or common stock = 70%
So, we can easily compute the WACC. The formula is shown below
= Weighted of debt × cost of debt × (1- tax rate) + Weighted of equity × cost of equity
= 0.30 × 0.10 × (1 - 0.30) + 0.70 × 0.16
= 0.021 + 0.112
= 13.30%
Hence, the company WACC is 13.30%
Cash receipts from customers = $136,000
cash payment for operating expenses = $102,000
tax paid = 1 / 3
Amount on which tax paid = $9,300
amount of tax paid = $9,300 / 3 = $3,100
net cash provides by operating activities = ?
Net cash = cash from customers - cash payment for operating expense - amount of tax paid
= $136,000 - $102,000 - $3,100
= $30,900
so the net cash provided by operating activities is $30,900
The long-run collective supply curve shifts right if productivity increases or the price of key inputs decrease. It makes the combination of the lower inflation, higher output and lower unemployment.
<h3 /><h3>What is aggregate supply?</h3>
Aggregate supply is also called total output, it is the total production of the goods and services within an economy at the overall price at the given period.
The main two elements of aggregate supply are consumption and saving. The sum up of the national supply is the consumption expenditure and savings.
Thus, The long-run collective supply curve shifts right if productivity
For more details about aggregate supply, click here:
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