Interest on balance with Central bank RO 3500 Interest on fixed deposit RO 1100 Locker rent RO 520 Transfer fees paid RO 880 From the above information, the operating profit will be: O a. RO 2040

Business Math Worksheet 8.2: Installment loans-Amount Financed Name Background: An installment loan is repaid in several equal payments over a specified period of time. Usually, you make a down payment to cover a portion of the cash price of the item. The amount you finance is the portion of the cash price that you owe after making the down payment. Amount Financed = Cash Price - Down Payment Down Payment = Cash Price x Percent 1. Flora Quinton is buying a new air compressor for her auto repair shop. It sells for $1,299. She makes a down payment of $199 and finances the remainder. How much does she finance? 2. Beatriz Ruiz is buying new office furniture. It sells for a cash price of $2,358.60. The down payment is $200.00. What is the amount financed 3. An office remodeling project costs $15,880. If you pay $3,680 towards the project, how much do you finance?

Current credit policy proposed credit policy   Cash price $48.00 $48.00   Credit price n/a $50.00   Variable cost $36.00 $36.00   Quantity 120 120   Monthly return 2.00% 2.00%   Credit terms n/a Net 30   % Uncollectable n/a 3.00%   Assume the customer will either pay in 30 days or will default. What is the cost of switching the credit policy? A) $ 6,000 B) $ 4,320 C) $ 5,333 D) $ 5,000 E) $ 5,760

Given credit terms of 2/25, n/30 on a sale of $1,500, in how many days must the invoice be paid to take advantage of the discount? 30 C) 15 D) 25

Compute bank discount using (A) ordinary interest, (B) proceeds, and (C) effective interest rate to nearest hundredth. Do not round denominator in your calculation.   Face Value Discount Rate Time in Days $12,000 13% 120

In cell E7, add a formula that calculates the monthly payment amount assuming that the payment is due at the beginning of the month. Subtract the “Downpayment” amount from the principle. (Use the PMT Function as Formula in Excel)

Following the calculation for years 1 and 2, what would be the payment adjustments and loan balances for years 3 to 5? Replicate the numbers in the table.

Find the future value of the loan. $200 loan at 7% for 9 months OA. $210.50 OB. $1,010,50 OC. $128.00 OD. $215.50

A trade credit bill of $80,000 with terms of sale of 2/5, net 30 means the buyer saves if the bill is paid within the discount period A:1600 How much discount will a buyer receive if the buyer pays a trade credit bill of $60,000 with terms of sale of 2/5, net 30 on the net due date? A: 0