You borrowed $30,000 to finance the education expenses for your senior year of college at the beginning of your senior year. The loan will be paid off over five years and the first installment will be due a year later. The loan carriers an interest rate of 7% per year and is to be repaid in equal annual installments over the next five years. Suppose you want to negotiate with the bank to defer the first loan installment until the end of year 2. (But you still desire to make five equal installments at 7% interest.) If the bank wishes to earn the same profit, what should be the new annual installment

$7,828.869

Explanation:

For computing new annual installment first we have to determine the  equivalent worth of borrowed amount i.e $30,000 which is shown below:

= Borrowed amount × (1 + interest rate)

= $30,000 × (1 + 0.07)

= $30,000  × 1.07

= $32,100

Now the new annual installment is

= Equivalent worth of borrowed amount × (A/P,7%,5%)

= $32,100 × 0.24389

= $7,828.869

Refer to the A/P table for determining the factor

hi i’m a student too and i’ve had this app downalodes for a few weeks people do answer it you just gotta be patient and what is your question + subject i’ll you?

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o