Martin took out a commercial loan of R 360 000 to fund his new caf. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Martin took out a commercial loan of R 360 000 to fund his new café. The bank is charging 10.25 per cent simple interest each year, and Martin has five years to pay off the loan. He wants to calculate his medium-term budget, but he is not familiar with interest calculations so he has asked you to help him. Source: Ward, B., Anderson, W., Le Roux, C., Alberts, E., De Beer, M., Ellis, N. K. & Maritz, J. (2020). A guide to entrepreneurship. 3rd ed. Cape Town: EDGE Education. 5.1 Calculate Martin's monthly interest. (Show all calculations.) 5.2 Calculate Martin's total monthly repayments. (Show all calculations.) Martin took out a commercial loan of R 360 000 to fund his new café. The bank is charging 10.25 per cent simple interest each year, and Martin has five years to pay off the loan. He wants to calculate his medium-term budget, but he is not familiar with interest calculations so he has asked you to help him. Source: Ward, B., Anderson, W., Le Roux, C., Alberts, E., De Beer, M., Ellis, N. K. & Maritz, J. (2020). A guide to entrepreneurship. 3rd ed. Cape Town: EDGE Education. 5.1 Calculate Martin's monthly interest. (Show all calculations.) 5.2 Calculate Martin's total monthly repayments. (Show all calculations.)
Expert Answer:
Answer rating: 100% (QA)
51 Because the interest rate on the loan is simple interest the interest paid on the loan can be det... View the full answer
Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
Posted Date:
Students also viewed these finance questions
-
Ed Walker wants to save some money so that he can make a down payment of $ 3,000 on a car when he graduates from college in four years. Required: If Ed opens a savings account and earns 3 percent on...
-
Simple and Compound Interest You invest $1,000 for five years at 5% simple interest at Bank 1. You invest $1,000 for five years at Bank 2 where interest at 5% is compounded annually. Compute the...
-
The bookkeeper at Martin Company has asked you to prepare a bank reconciliation as of May 31. The May 31 bank statement and the May T- account for cash (summarized) are on the next page. Martin...
-
11. Calculate the expected return and standard deviation for the risky portfolio on the CAL (with or without borrowing) and for the investor's complete portfolio on the CAL. 8(,1)% Std dev= 30 25 18...
-
What factors should a company consider before selecting a chartered bank as a lender?
-
Describe the process of handling hardware interrupts in the kernel. How does context switching impact system performance, and what mechanisms do kernels use to minimize the overhead associated with...
-
Evaluate the role that religion plays in social change.
-
Hernandez Company issued $380,000, 7%, 10-year bonds on January 1, 2017, for $407,968. This price resulted in an effective-interest rate of 6% on the bonds. Interest is payable annually on January 1....
-
a. What is Lauren's position? b. What are Lauren's interests? 2. a. What is Jules' position? b. What are Jules' interests? 3. a. What is Lauren's BATNA? b. What is Jules' BATNA? 4. a. How effective...
-
1. Cost out these packages given the data in Exhibits 1 and the information obtained from various insurance carriers and other information sources (Exhibit 4). Exhibit 1: Current compensation costs...
-
If XYZ company dividend for the next period = $2.3 per share, growth rate = 0.05, the required rate of return = 11.3%. What is the present value of this stock?
-
On December 31, Kohl Company correctly made an adjusting entry to recognize \($2,000\) of accrued salaries payable. On January 8 of the next year, total salaries of \($3,800\) were paid. Assuming the...
-
Even a spring without a block hanging on the end of it has an oscillation period. Why isn't the period zero?
-
Calculate the Lorentz factor for an object moving relative to Earth at (a) \(60 \mathrm{mi} / \mathrm{h}\), (b) \(0.34 \mathrm{~km} / \mathrm{s}\) (speed of sound in air), (c) \(28 \times 10^{3}...
-
A table outfitted with springs on its feet bounces vertically in simple harmonic motion. A cup of coffee is sitting on the table. Discuss whether any of the following changes to this system could...
-
A \(5.0-\mathrm{kg}\) object is suspended from the ceiling by a strong spring, which stretches \(0.10 \mathrm{~m}\) when the object is attached. The object is lifted \(0.050 \mathrm{~m}\) from this...
-
200,000 . (15 points) The Joneses are interested in purchasing a house listed at $580,000 in Thunder Bay. They are prepared to make a down payment of $20,000 and the rest of the money is financed by...
-
If the joint cost function for two products is C(x, y) = xy2 + 1 dollars (a) Find the marginal cost (function) with respect to x. (b) Find the marginal cost with respect to y.
-
How is selling a credit forward similar to buying a put option?
-
Classify the following items as (1) On-balance-sheet assets, (2) On-balance-sheet liabilities, (3) Off-balance-sheet assets, (4) Off-balance-sheet liabilities, or (5) Capital account. Classification
-
Under what balance sheet circumstances would it be desirable to sell a floor to help finance a cap? When would it be desirable to sell a cap to help finance a floor?
-
Of the following, which is the most comprehensive definition of a project? a. An environment created to deliver a product, service, or result. b. A collaborative enterprise that delivers a product,...
-
How do project management and quality management complement each other? a. Both focus on continuous improvement, management responsibility, customer satisfaction, and prevention over inspection. b....
-
When creating a project management plan, which of the following is the best choice to create it? a. Project manager b. Project manager and team c. Team d. Sponsor
Study smarter with the SolutionInn App