A recent engineering graduate is relocating after 3 years on the job. History shows that subsequent assignments with the company last for 4 to 6 years beforemoving on to a new location for additional experience and broadening. The graduate wishes to buy a new home costing $200,000, make a 5 percent down payment, and finance the remaining $190,000. The rate quoted for a conventional 30-year loan is 6.8230 percent interest with no points and no other closing costs. a. What is the amount of the monthly payment? Calculate this using both Excel1 and one of the Web-based calculators. b. If, immediately after the sixtieth payment (5 years), the graduate is asked to move, what will be the unpaid balance on the loan? c. Use Excel1’s EFFECT function (or RATE function) to determine the effective annual interest rate for the loan. d. Determine the APR using both Excel1 and one of the Web-based calculators.

Daniel owns 100 shares of abc corporation's common stock. abc uses the fair value option, and recent declines in the firm's credit rating have caused the value of the firm's outstanding bonds payable to drop by 10%. daniel feels this is good news, but he wants to know what you think about the situation. which of the following represents your best response? a : "this situation may be positive for you in that the change in abc's credit standing indicates that the value of the firm's assets is likely increasing. however, the drop in bond value may negate any positive effects on your bottom line, because it means your claim on the firm's assets is simultaneously decreasing." b : "actually, this is bad news all around. the drop in the value of abc's bonds payable means shareholders' claims on the firm's assets have decreased. moreover, abc's declining credit rating means that the firm's assets are probably also dropping in value, thus magnifying your losses even more." c : "on the surface, this seems like good news because it means your claim on the firm's assets has increased. however, the drop in creditworthiness may also indicate that abc's assets are declining in value, thus offsetting any gains associated with the drop in bonds payable." d : "you're right! this is good news because it means that abc's debtholders have a decreased claim on the firm's assets. as a result, the firm's existing shareholders"like you"have seen their claim on the firm's assets increase."

Lusk corporation produces and sells 14,300 units of product x each month. the selling price of product x is $25 per unit, and variable expenses are $19 per unit. a study has been made concerning whether product x should be discontinued. the study shows that $72,000 of the $102,000 in monthly fixed expenses charged to product x would not be avoidable even if the product was discontinued. if product x is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:

You hear your supervisor tell another supervisor that a fire drill will take place later today when the fire alarm sounds that afternoon you should