Howie borrows $25,000 from his aunt with 4% simple interest rate. At the end of one year, how much does howie pay back to his aunt, including the interest?.

Answers

Answer 1

Howie will be responsible for repaying $26,000 after a year, interest included.

Interest rate = 4%

Cost of car = $25,000

Time = 1 year

Amount of interest = Principal × Rate × Time

= 25,000 × 4% × 1

= 25,000 × 0.04 × 1

= $1,000

Amount to be paid = Amount of interest + Cost

= 1,000 + 25,000

=26,000

In the fields of finance and economics, interest is the payment of a sum over and above the principle amount to a lender or depositor by a borrower or deposit-taking financial institution at a set rate. It is not the same as a charge that the borrower could pay to the lender or another entity.

By dividing the outstanding principle by the interest rate, interest is figured in its simplest form. The more difficult part of calculating interest is frequently choosing the appropriate interest rate. The interest rate is frequently stated as a percentage and is frequently referred to as the APR.

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Related Questions

Lindsey plans to open a new bicycle shop in Gainesville that will target college students. She anticipates that demand for bicycles will increase this summer as a result of higher gas prices and increasing parking problems on campus. However, she has also taken into account that some things may not go the way she has planned and has developed alternative courses of action. What component of the marketing plan do these alternative strategies represent

Answers

Answer:

Contingency plan

Explanation:

Contingency plan is a common a management tool. It facilities adequate arrangements which are made in the advent of a crisis. It is a plan laid down for a specific situation when things could go wrong.

Plans which are developed for possible operations where the planning factors ( e.g. scope, risks and others have been figured out or assumed.

Example: It is the Preparation to deal with calamities such as floods and non calamitous situations such as labor strike usually before they occur.

Which could be the heading of Carrie's balance sheet?
Carrie's Balance Sheet (January 1, 2021)
Carrie's Balance Sheet (January)
Carrie's Balance Sheet (Friday, January 3)
O Carrie's Balance Sheet (January 2011 – January 2021)

Answers

Answer: Carrie's Balance Sheet (January 1, 2021)

Explanation:

A Balance sheet should be based on a particular day so that the records contained in it can be specific as of the day the balance sheet was made.

This is done because having a general date might be confusing as many transactions could take place in that period and there will be some confusion as to which ones need to be recorded and which do not. A specific date however, shows the events that have happened up until that very day.

A. Carrie's Balance Sheet (January 1, 2021)

edge 2021

QUESTION 8 of 10: You buy a lathe for $20,000. Its useful life is 10 years. Each week, over 10 years, you recognize an equal portion of its cost. This is called depreciation. What is your weekly depreciation for the lathe?

Answers

Answer:

the weekly depreciation is $38.46

Explanation:

The computation of the weekly depreciation is shown below;

Given that

The Purchase value of the lathe is $20,000

Useful life is 10 years

So,  the annual depreciation is

= $20,000 ÷ 10 years

= $2,000 per year

Now the weekly depreciation is

= $2,000 ÷ 52 weeks

= $38.46

Hence, the weekly depreciation is $38.46

The pros and cons of new product concepts are analyzed during the idea generation phase of new product development.

True
False

Answers

The Awnser would is False your welcome

Name 4 things you can buy insurance for?

Answers

Answer:

Weather, Car, house, and appliances.

Explanation:

Its simple

Car Insurance.
Home Insurance.
Life Insurance.
Disability Insurance.
Health Insurance.

Assume that a competitive economy can be described by a constant returns to scale (Cobb Douglas) production function and all factors of production are fully employed. Holding other factors constant, including the quantity of capital and technology, explain how a one-time, 10-percent increase in the quantity of labor (perhaps the result of a special immigration policy) will change each of the following: the real rental price of capital;

Answers

Answer and Explanation:

Since there is an increase of 10% of the quantity of labor this would result an increase in the real rental price of capital due to which the ratio of capital labor would decrease

Therefore according to the given situation, the real rental capital price would rise  

Hence, the above represent the answer

People who live entirely within an urban environment ________. People who live entirely within an urban environment ________. are never provided enough quality housing, even for those who can afford it have too many luxury goods at too expensive a price have insufficient choices for activities and lifestyles may become disconnected from nature and from the true costs of their needs and activities pay less for food and gasoline than rural areas

Answers

Answer: may become disconnected from nature and from the true costs of their needs and activities

Explanation:

People who live entirely within an urban environment may become disconnected from nature and from the true costs of their needs and activities.

Unlike those in the rural areas which are connected to nature, thus isn't thesame those lining entirely in an urban area such as a large city. Also, with regards to the prices of the goods being bought, there may be some hidden cost that can't be seen in the price of the good in the market.

You are the executive director of a nonprofit that runs an animal shelter and animal services, such as low-cost spay/neuter programs. Your biggest donor, a local foundation, has just withdrawn funding, saying that it has refocused its mission on supporting arts programs and your activities do not align with that. Unless other funding can be found, and soon, the shelter building will need to be closed, paid staff laid off, and most animals turned over to other, already crowded shelters. Your employees and volunteers are very worried and are looking to you for leadership.

Which of the following do you do? Check all that apply.

A. Withhold information about the organization’s financial picture so that employees continue to be loyal rather than looking for other jobs.

B. Hold meetings with employees, volunteers, and representatives of other local shelters and listen carefully as they brainstorm ideas.

C. Honestly acknowledge the challenges the organization faces while also communicating optimism about finding the resources to fulfill your mission.

D. Stay in your office as much as possible so people know you’re hard at work, and when you do walk around, keep a "poker face" on so no one gets the idea that things are worse or better than they are.

[ Music ]

>> [Background Music] Good communication will enable lower costs, better patient care, and better patient outcomes. And technology can facilitate that. Hi. I'm Mark Allen. I'm the Clinical Information Systems Manager for the Utah South region and the rural region for Intermountain Healthcare. Intermountain is known internationally for its ability to be able to use clinical data to improve patient outcomes. So, we have 22 hospitals across the state of Utah, one in Idaho, and we have over 300 clinics across the enterprise.

>> Communication is very important. And one of the key things to keeping everybody on the same page is to develop a good communication plan and to repeat a consistent message often and frequently. Hi, I'm Fritz Crone [phonetic]. I'm the Regional Director for Quality at Intermountain Healthcare in the urban south region here. And one of the most exciting things I get to do every day is to work with our teams and accelerate bringing best practices to our patients. Every region supplies a local representative. We are very fortunate in our ability to engage physicians and nurse leaders who are willing to spend their time participating in the committee meetings and networking with their peers throughout the system. And we always recognize that it is a challenge to get the word out. And we do that through meetings. We do that through talking points. We'll put flyers on bulletin boards. There's also some more formal documents called care process guidelines. And those are heavily researched documents that are available on the website. So, we use a combination of methods to communicate what are goals are for that year. Part of our clinical program goals almost always involves patient education because in addition to the providers, the physicians, and the nurses and the laboratory support, as patients, we are also very accountable for our health outcomes. We have standardized education. And we, that allows us to deliver a consistent message. So, when you're discharged from one facility, we have a standardized brochure and teaching information that's given. And then, again, that information is available throughout the system.

>> Telehealth services is really a key that we've identified and invested in in Intermountain healthcare. We have currently 26 projects across the enterprise where we're trying to find technical solutions to be able to provide better care to the patients. We have Tele-critical care. We have Tele-psych. We have a variety of other telehealth initiatives that we're trying to initiate to provide care at the rural facilities that can't afford, you know, a neonatologist or a hospitalist. In addition, the information that we have within our system is also provided to our home health division. So, as our home health nurses are visiting patients at home, they're going to have the full history and physical of the patient and the care that they received in the hospital to be able to provide better patient care to the patients that they visit.

[ Music ]
According to the managers in the video, which of the following methods is Intermountain Healthcare using to promote strategic conversations in the organization? Check all that apply.

Using purpose-directed communication

Engaging in downward communication

Using multiple channels of communication

Communicating across organizational boundaries

Answers

A. Hold meetings with employees, volunteers, and representatives of other local shelters and listen carefully as they brainstorm ideas.

C. Honestly acknowledge the challenges the organization faces while also communicating optimism about finding the resources to fulfill your mission.

The Colvilles are buying a new car. The cash price is $35,000.00. They will make a down payment of 20% or $5,000. The balance will be covered by an installment loan. The loan will be repaid in 48 monthly payments of $651. The annual percentage rate for the loan is _________%. (Round your answers to two decimal places.)

Answers

Answer:

The Annual Percentage Rate, APR = 1.07%

Explanation:

The annual percentage rate (APR) for a loan is the amount payed annually as interest which is specified as a percentage of the balance of the loan

The given parameters are;

The cash price for the car the Colvilles are buying = $35,000.00

The amount of down payment they will make = 20% or $5,000

The will cover the balance by installment loan

The number of monthly with which the loan will be repaid, n = 48 monthly payment

The amount of the monthly payments, M = $651

The balance which will be taken on loan, P = 35,000.00 - 5,000 = 30,000

The balance which will be taken on loan, P = $30,000

[tex]APR = \left(\left(\dfrac{\dfrac{Fees + Interest}{Principal} }{n} \right) \times 12\right) \times 100[/tex]

[tex]APR = \left(\left(\dfrac{\dfrac{ I}{P} }{n} \right) \times 12\right) \times 100[/tex]

Therefore;

The interest paid over life of loan, I = M × n - P

∴ I = 651 × 48 - 30,000 = 1,284

Therefore, we have;

[tex]APR = \left(\left(\dfrac{\dfrac{ 1,284}{30,000} }{48} \right) \times 12\right) \times 100 = 1.07 \%[/tex]

The Annual Percentage Rate APR = 1.07%

Determine which of the statements below is correct regarding information reflected on a monthly bank statement. Multiple choice question. Checks that the company writes will be listed as credits to the bank account on the bank statement. Deposits that the company makes will be listed as debits to the bank account on the bank statement. The information on the bank statement reflects the customer's records. The information on the bank statement reflects the bank's records of the depositor's account.

Answers

Answer:

The information on the bank statement reflects the bank's records of the depositor's account.

Explanation:

The monthly bank statement is the bank statement that issue the statement on monthly basis by the bank which reflects the depositor banking records i.e. collection and payment during the month.

So according to the given option, the last option is correct

Hence, the same would be relevant

And, the rest of the options are wrong

Find a product demonstration that educates people about a particular product. Describe that demonstration. Evaluate the demonstration by explaining whether it educated you about the product or simply tried to persuade you to buy the product.

Now, design your own product demonstration about a product you would like to investigate.

Answers

Answer:Dawn dish washing liquid has an ad that demonstrates how the product was used to clean the ducks and other wildlife that I had wheels stuck on their feathers after the gulf coast oil spill. It showed how the soap was strong enough to remove harmful oil, but gentle enough that it didn’t harm the delicate birds. This demonstration was highly effective because it educated the consumer on different ways to use Dawn dishwashing liquid

Explanation:

parking costs are incurred regardless of how well an event does.

Answers

Answer:

Fixed

Explanation:

The Answer is Fixed Parking because is depending on how the event changes on increasing or decreasing ticket pricing after the service revenue sold

The fixed parking costs are incurred regardless of how well an event does.

What is fixed packing cost?

The cost of packing that occurred either any product is made or not is called as the fixed cost. This cost occurred if any product is generated from the product.

Regardless matter how well an event performs, the set parking charges must be paid. This type of cost is incurred on the packing of any product that is going to be marketed.

Therefore, sometimes the fixed packing cost incurred if product is not made.

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Complete a departmental expense allocation spreadsheet for Marathon Running Shop. The spreadsheet should assign (1) direct expenses to each of the four departments, (2) the $64,000 of utilities expense to the four departments on the basis of floor space occupied, (3) the advertising department’s expenses to the two operating departments on the basis of the number of ads placed that promoted a department’s products, and (4) the administrative department’s expenses to the two operating departments based on the amount of sales.

Answers

Question Completion:

Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and clothing). The table that follows shows the direct expenses incurred and square footage occupied by all four departments, as well as total sales for the two operating departments for the year 2017

                            Direct Expenses    Square Feet    Sales

Department

Advertising              $ 18,000                   1,120

Administrative           25,000                  1,400

Shoes                       103,000                  7,140          $273,000

Clothing                      15,000                4,340               77,000

The advertising department developed and distributed 120 advertisements during the year. Of these, 90 promoted shoes and 30 promoted clothing. Utilities expense of $64,000 is an indirect expense to all departments.

Answer:

Marathon Running Shop

Allocation of service departments' costs to the operating departments:

                         Service Departments      Operating Departments     Total

                     Advertising Administrative   Shoes          Clothing

Departmental   $18,000        $25,000      $103,000      $15,000   $161,000

Utilities                  5,120             6,400         32,640         19,840      64,000

After Utilities      23,120            31,400        135,640        34,840  $225,000  

Advertising       -23,120                                  17,340          5,780    0

Administrative                         -31,400         24,492          6,908    0

Total allocated costs                                 $177,472       $47,528 $225,000

Explanation:

a) Data and Calculations:

                            Direct Expenses    Square Feet    Sales

Department

Advertising              $ 18,000                  1,120

Administrative           25,000                 1,400

Shoes                       103,000                 7,140           $273,000

Clothing                     15,000                 4,340               77,000

Total                       $161,000               14,000          $350,000

Allocation of Utilities Expense of $64,000

Rate

Advertising        (1,120/14,000 * $64,000) =     $5,120

Administrative   (1,400/14,000 * $64,000) =   $6,400

Shoes                 (7,140/14,000 * $64,000) = $32,640          

Clothing             (4,340/14,000 * $64,000) = $19,840

Advertising       $ 18,000 + $5,120 = $23,120

Administrative    25,000 + $6,400  = $31,400

Shoes                103,000 + $32,640 = $135,640        

Clothing              15,000 + $19,840 = $34,840

Advertising expenses consumed by:

Shoes     90/120 * $23,120 = $17,340

Clothing 30/120 * $23,120 = $5,780

Administrative expenses consumed by:

Shoes $273,000/$350,000 * $31,400 = $24,492

Clothing $77,000/$350,000 * $31,400 = $6,908

Payroll deductions are the same for all employees.

Answers

Answer:

no it depends the age and how good u are at your job.

Explanation:

How does the fractional reserve system increase the money supply in a country?

A. By giving banks the authority to print their own money in an economic emergency
B. By using deposited money to make loans without reducing the value of the deposits
C. By automatically converting foreign currencies into U.S. dollars on deposit
D. By guaranteeing that all deposits are held in reserve as cash at all times

Answers

Answer:

B. By using deposited money to make loans without reducing the value of the deposits.

Explanation:

got it right on the quiz :)

By making loans with the help of deposits while maintaining the value of the deposits. Therefore, option B is correct.

What is fractional reserve system?

Fractional reserve system is a banking system in which banks are required to hold only a fraction of their deposit liabilities as reserves in the form of cash or deposits with the central bank, and can lend out the rest of the funds to borrowers.

For example, if a bank has $100 million in deposits and is required to hold a reserve ratio of 10%, it can lend out $90 million and hold $10 million as reserves. This creates new money in the economy, as the borrower who receives the $90 million can deposit it in another bank, which in turn can lend out a portion of the funds.

The fractional reserve system allows banks to earn interest on loans and create more money in the economy, which can stimulate economic growth. However, it also increases the risk of bank runs and financial instability, as depositors may rush to withdraw their funds if they lose confidence in the bank's ability to repay them.

To mitigate this risk, central banks and regulators monitor banks' reserves and require them to hold additional capital as a buffer against losses.

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Help me please.. there is no option on here for Human Resources principals, so I jus clicked business as the subject..

Answers

Answer:

it is c issue-based-model

Help me please... help

Answers

Direct stakeholders are those involved in the company's day-to-day activities. Like employees, who carry out their daily tasks, working on the company's ongoing projects. Indirect stakeholders are those who are more interested in the result of the production. Direct stakeholders are entities that have a visible role in the organization, regulation, operation and support of the bus service; or people, communities and entities that use the service or are impacted by it. Indirect stakeholders are anyone else whose interests are either enhanced or threatened.

Answer:

Explanation:

C part

The variable overhead efficiency variance measures the difference between the ________, multiplied by the budgeted variable overhead cost per unit of the cost-allocation base. budgeted quantity of the cost-allocation base used and the budgeted quantity of the cost-allocation base that should have been used to produce the actual output budgeted cost and the actual cost used to produce the actual output actual cost incurred and the budgeted quantity of the cost-allocation base that should have been used to produce the actual output actual quantity of the cost-allocation base used and the budgeted quantity of the cost-allocation base that should have been used to produce the actual output

Answers

Answer:

actual quantity of the cost-allocation base used and the budgeted quantity of the cost-allocation base that should have been used to produce the actual output

Explanation:

The formula to calculate the  variable overhead efficiency variance is shown below:

= (Standard quantity - actual quantity) ÷  budgeted variable overhead cost per unit

In the case when the standard quantity is more than the actual one so it is favorable else unfavorable

Therefore the last option is correct

And, the other options are wrong

Question 40 of 40
Product differentiation occurs most frequently in what part of the product life
cycle?
A. Introduction
B. Growth
C. Decline
D. Maturity

Answers

Product differentiation occurs most frequently in the D. maturity part of the product life cycle.

Maturity isn't a matter of age, but rather, of how you choose to respond and reply to colorful life situations. It's basically a position of internal development or wisdom that has a bearing on all areas of an existent's life, right from their conduct to their relationship with others. A mature person will take responsibility for his own conduct rather than condemn others. He'll take a far-sighted view of effects and act in a considered, rather than a robotic manner. Mature people are suitable to accept themselves for who they are; they exercise kindness indeed in the face of their failings. You can seek to ameliorate yourself and grow as an individual, but maturity allows you to take your present situation and all the once events that have led to it and make peace with them.

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What is the difference between specialization and cross-training?
A. Specialization is for employees at the top management level of
the company while cross-training is for employees at the entry
level.
B. Specialization is for employees who have an advanced degree
while cross-training is for those who do not have an advanced
degree.
C. Specialization is for employees who love what they do while cross-
training is for employees who don't love any one particular area of
their work.
D. Specialization leads employees to focus on a single skill or task
while cross-training deals with training employees in multiple skills
or tasks.

Answers

Answer:

D. Specialization leads employees to focus on a single skill or task

while cross-training deals with training employees in multiple skills

or tasks.

Explanation:

Job specialization can be defined as a strategic process which typically involves the ability of employees working in an organization to develop specific skills, knowledge, great expertise or professionalism and experience to perform their duties, tasks or job functions effectively and efficiently.

In order to gain the requisite skills, expertise and knowledge for job specialization, it is very important for the employees to have undergone an extensive training and a good number of years in work experience.

The primary purpose of job specialization is to increase efficiency and productivity because the employees are able to specialize in the use of specific tools (equipments) to accomplish their tasks, as well as limit the level of error or mistakes in the production process.

On the other hand, cross-training can be defined as a learning process which typically involves teaching an individual or group of people multiple skills that are relevant to their job position or roles in an organization.

Hence, the difference between specialization and cross-training is that, specialization leads employees to focus on a single skill or task while cross-training deals with training employees in multiple skills or tasks.

Bruce is employed as an executive and his wife, Marie, is a self-employed realtor. Besides Bruce's salary, Bruce and Marie own a warehouse that they rent to a local business for storage. This year they paid $1,250 for electric service in the warehouse. Marie also paid self-employment tax of $6,200 and Bruce had $7,000 of Social Security taxes withheld from his pay. Marie paid $45 fee to rent a safe deposit box to store records associated with her realty operation. Which of the following is a true statement?
A. One-half of the social security tax is deductible for AGI.
B. Only the electric bill is deductible for AGI.
C. The self-employment tax is not deductible.
D. The safe deposit fee and the electric bill are deductible for AGI.
E. None of the choices are true.

Answers

Answer:

d. the safe deposit fee and the electric bill are deductible for AGI.

Promotion to consumers is called

Answers

Sales promotion

Sale promotion targeted at retailers and wholesale are called trade sale promotion

when should an event programing be used

Answers

Answer:

The utilization of the given topic is summarized throughout the below section.

Explanation:

Event-driven programming language shall be used if the software doesn't somehow monitor the sequential order of such occurrence.The software circulation or activity was mostly directly guided to an external mechanism like a consumer or client (e.g. a GUI), a whole other method (e.g. a customer or a server).

Federalists believed a workable government

must separate government into branches.
should centralize power under the president.
cannot prevent abuses of power.
could not be created under the Constitution

Answers

Answer:

must separate government into branches.

Explanation:

Federalists refers to a group of people who were keenly interested in the ratification of the federal constitution of the United States of America in 1787. They unanimously believed and agreed that the Articles of Confederation wasn't adequate or sufficient enough to enhance good governance and serve the needs of the United States of America and as such required a new government having greater powers at the national level.

Additionally, the federalists were a group of people who were well funded, organized and as a result made use of the printed media extensively.

Some notable members of the Federalists were Benjamin Franklin, George Washington etc.

Hence, the federalists believed a workable government must separate government into branches, which would include federal, state and local government.

Answer:

A

Explanation:

I took the test

helpppppppppppppppppppppppppp

Answers

I would say C because examining it with other evidence that was accurate would give you the idea of what you’re look for.

On March 14, Ian Co. accepted a 180-day, 5% note in the amount of $1,000 from Ali Co., a customer. On the due date of the note, Ali dishonors the note and fails to pay. The journal entry that Ian would record on the due date would include a: (Check all that apply.) Multiple select question. credit to Notes Receivable for $1,000. debit to Accounts Receivable - Ali for $1,025. debit to Interest Revenue for $25. debit to Notes Receivable for $1,025. credit to Accounts Receivable - Ali for $1,000. credit to Interest Revenue for $25.

Answers

Answer:

Debit to Accounts Receivable - Ali for $1,025,

Credit to Interest Revenue for $25,

Credit to Notes Receivable for $1,000,

Explanation:

Based on the information given The appropriate journal entry that Ian would record on the due date would include a:

Debit to Accounts Receivable - Ali for $1,025,

($1,000+$25)

Credit to Interest Revenue for $25,

(5%*$1,000*180 /360)

Credit to Notes Receivable for $1,000,

A manager of a nursing home wants to be sure not to employ any immigrants who aren't authorized to work in the United States. The manager proposes that the company consider only job applicants who are obviously citizens. What is the legal problem with this idea?
A. It is a violation of the WARN Act, which protects against discrimination
B. It violates the principle of employment at will.
C. It eliminates the need for requiring the Form I-9 verification process.
D. It may lead to discrimination on the basis of race and national origin​

Answers

Answer:

Option B, It violates the principle of employment at will

Explanation:

Discrimination of any sort is not promoted in any organization. A suitable candidate is selected based on his/her skill sets, educational background and experience. Also, discrimination of any form in a professional office space is a punishable offence.

Hence, option B is correct

Find two cases of life insurance fraud. Write a paragraph for each one explaining the details given. (how was the fraud committed, what was the purpose, how the person was caught, what happened as a result, etc.) Next, find one case of health insurance fraud and look up the same information.

Answers

Answer:

Health identity theft is when criminals steal victims names.

Explanation:

health insurance numbers and other personal data and then defraud insurers by making false claims. To combat the problem, some medical ...

Question 1 of 40
What of these statements best describes the purpose of a logo?
A. It consists of the words the audience will read first on an
advertisement.
B. It supports a marketing message by grabbing attention and
making an emotional appeal.
C. It lists information and other details needed to develop audience
interest and credibility.
D. It reminds the audience of the advertiser's identity.
SUBMIT

Answers

Answer:

D. It reminds the audience of the advertiser's identity.

Explanation:

Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research.

Advertisement refers to the promotional multimedia messages designed and developed to make the products or services of a company known to its customers and potential customers. It is generally considered to be one-sided because it focuses on painting a brand as the best and devoid of any negative issue.

A logo is simply a graphical symbol, emblem or illustration that serves as a means of identity and trademark of a particular company saddled with the responsibility of manufacturing goods and services for its customers. Logos are usually placed or inscribed in all products, so as to differentiate the brand from it's competitors and to make the customers aware of the identity of the manufacturer (advertiser) during an advertisement.

Hence, the statement which best describes the purpose of a logo is that it reminds the audience of the advertiser's identity.

Ace Industrial Machines issued 165,000 zero coupon bonds 6 years ago. The bonds originally had 30 years to maturity with a yield to maturity of 6.4 percent. Interest rates have recently decreased, and the bonds now have a yield to maturity of 5.5 percent. The bonds have a par value of $2,000. If the company has a $84.2 million market value of equity, what weight should it use for debt when calculating the cost of capital

Answers

Answer:

0.5202

Explanation:

Calculation to determine what weight should it use for debt when calculating the cost of capital

First step is to compute the Present value (PV) using financial calcualtor -

Put in calculator-

FV 2000

PMT 0

I 5.50%

N 24( 30 years- 6 years)

Compute PV ($553.31)

Second step is to calculate the Total value of debt

Price of bond = $553.31

*Number of bond = $165,000

=Total value of debt $91,296,150

($553.31*165,000)

Now let calculate the Weight of debt

Weight of debt =$91,296,150/($91,296,150+$84,200,000)

Weight of debt=$91,296,150/175,496,150

Weight of debt=0.5202

Therefore weight should it use for debt when calculating the cost of capital is 0.5202

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