Reference no: EM13976314
Upon graduation, Steven purchases a new home theatre system for his apartment.To finance the system, he borrows $5,000 from a new credit card at 21% per year compounded monthly. He fully intends to pay off the loan in 1 year while making monthly payments. Develop an excel table to illustrate the payment amounts and schedule for the loan, assuming payback follows
a) Plan 1: Pay the accumulated interest at the end of each interest period and repay the principal at the end of the loan period
b) Plan 2: Make equal principal payments plus interest on the unpaid balance at the end of the period
c) Plan 3: Make equal end of period payments
d) Plan 4: Make a single payment of principal and interest at the end of the loan period
e) A different plan: Pay $X in principal at the end of months 1,2 and 3;Pay $2X at the end of months 4,5 and 6; then $3X at 7,8,9; and finally $4X at 10,11,12. In addition, pay the accumulated interests at the end of each interest period.
|
Two alternatives are being offered by the lender
: Your money is tied up and you need to borrow $10,000. The following two alternatives are being offered by the lender. Pay $3,288.91 at the end of each year for 5 years, starting at the end of the first year (5 payments total at 18% nominal per year c..
|
|
Calculate the reorder point
: Run First, Inc. uses 1000 units of Product X each year, on a continual basis. Product X has a fixed cost of $100 per order. There is a carrying cost of $1.50 per unit, per year. It takes 10 days for shipments to be received after an order is placed. ..
|
|
Journal-corporate governance at diamond foods
: You discussed corporate governance in the Discussion. Now you will apply what you learned to analyze the corporate culture and its influence on potential fraud. Read about corporate governance at Diamond Foods, in the Harvard Business Case study link..
|
|
Evidence collection-what are major categories of evidence
: You have been assigned to the Emerel Company embezzlement case by the owner of your CPA firm. The president of Emerel Company has told you that Susan Smith, the assistant bookkeeper, reported the suspected fraud. What are the three major categories o..
|
|
Pay the accumulated interest at end of each interest period
: Upon graduation, Steven purchases a new home theatre system for his apartment.To finance the system, he borrows $5,000 from a new credit card at 21% per year compounded monthly. He fully intends to pay off the loan in 1 year while making monthly paym..
|
|
What is the cash flow to stockholders-operating cash flow
: Volbeat Corp. shows the following information on its 2015 income statement: sales=$267,000; costs=$148,000; other expenses= $8,200; depreciation expense= $17,600; interest expense= $12,400; taxes = $32,620; What is the 2015 operating cash flow? What ..
|
|
Calculate the degree of operating leverage
: PrepCo, Inc. is looking to find information on its breakeven point and associated measurements. The following is the data that PrepCo will use in its analysis: Variable operating costs of $15 per unit. Calculate the units needs for PrepCo’s operating..
|
|
Working capital cash flow cycle
: Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $200,000 (all on credit), and it earned a net profit of 4%. Calculate Strickler's cash conversion cycle. Calc..
|
|
A firm has had the indicated earnings per share
: A firm has had the indicated earnings per share over the last three years. If the firm's dividend policy was based on a constant payout ratio of 50 percent, determine the annual dividend for each year.
|