Answer:
c. demanding managerial requirements and limited competitive advantage potential that cross-business strategic fit provides.
Explanation:
An unrelated diversification can be defined as a situation in which an existing business or company enters or invest in an entirely new business or industry that do not have any similarity whatsoever with its original business or product line. For example, an automobile manufacturing company that decides to acquire or invest in a clothing or shoe business.
Hence, the two biggest drawbacks or disadvantages of unrelated diversification are demanding managerial requirements and limited competitive advantage potential that cross-business strategic fit provides.
Also, the difficulties in successfully managing a collection of unrelated different business and having minimal competitive advantage potential over its rivals in the industry that cross-business strategic fit provides is another disadvantage of unrelated diversification
QUESTION 14
Which of the following is not true when describing an Exchange?
Each part has something that might be of value to the other party
Three or more parties must be involved
Each party is capable of communication and delivery
Each party believes it is appropriate or desirable to deal with the other party
Each party is free to accept or reject the exchange offer
Answer:
this is my answer hopes it helps you
Explanation:
Each party believes it is appropriate or desirable to deal with the other party
Do you agree or disagree with the following statements
a. The demand curve facing a monopolistic competitor in a market where all producers charge different prices becomes less elastic when it engages in international trade
b. According to the gravity equation, countries closer to each other trade more
c. The only gain from trade in monopolistic competition in trade is lower prices
d. The closer to 1 the index of intra industry trade is, the greater the difference between exports and imports of the same goods.
Answer:
a. The demand curve facing a monopolistic competitor in a market where all producers charge different prices becomes less elastic when it engages in international trade - Disagree
This statement is not true. If a monopolistic competitor engages in international trade, it will meet more competition, meaning that the audience (demand) that it has is more sensitive to prices, because they have more options available.
b. According to the gravity equation, countries closer to each other trade more - Agree
The gravity equation tells us that the volume of international trade is correlated with geographical proximity and economic size. That is to say, the closer and larger two economies are, the more international trade they engage with each other.
c. The only gain from trade in monopolistic competition in trade is lower prices - Disagree
Gains are the most important in lower prices, but there are also gains in competitiveness and quality.
d. The closer to 1 the index of intra industry trade is, the greater the difference between exports and imports of the same goods. - Disagree
An index of intra industry trade of 1 indicates that the country imports and exports roughly the same amount for a particular type of goods (the goods that belong to that industry). Hence, the statement is not true.
In an appearance on Shark Tank, the owner of a wedding runner company wanted to pursue a strategy of _____ and make her runners affordable to the public. The sharks suggested she should pursue a strategy of ______, focusing on quality and uniqueness.a. differentiation; cost leadershipb. unrelated diversification; related diversificationc. cost leadership; differentiationd. focused retrenchment; growthe. related diversification; unrelated diversification
Answer:
c. cost leadership; differentiation
Explanation:
Remember, we are told that the owner wants to make her runners affordable to the public, and we agree that affordability is only possible when there is cost leadership. Cost leadership strategy simply implies that the company's products/services are positioned to be the cheapest in comparison with other competitors.
To specifically focus on quality and uniqueness, the sharks were asking the owner to pursue the differentiation strategy. Differentiation strategy requires having features that set your product or service apart from others such as quality and uniqueness.
The envelope method, notebook and pencil, and online software are all methods of ______.
estimating your unexpected expenses
planning for your future
tracking your spending
understanding your current expenses
Answer:
tracking your spending
Explanation:
In personal and business activities inner needs to track spending in order to know financial status and budget effectively with available funds.
Without tracking spending there is tendency that waste will occur and spending on unimportant items will occur.
The envelop method entails having money for each category of spending in different envelops. At the end of a period you can check the envelops to see how much has been spent in each category.
Notebook and pencil involves writing down expenses.
Online software such as QuickBooks can be used to track how much an individual or business has spent.
Answer:
C. tracking your spending
Explanation:
You have been texting with your friends trying to make plans for this evening. Your best friend Jocelyn is not sure if she will finish her homework in time to come out, but if she does, she wants to go to a new restaurant on the north end of town that you've both been wanting to try. Another group of friends is going to a restaurant on the south end of town, but you've already been to this restaurant and it was only okay. Overall, you would prefer to go to the restaurant with Jocelyn. But if Jocelyn isn't coming out, you would rather hang out with your friends than stay home. No one is returning your calls, but you need to get on the subway and head into town if you want to do anything this evening. You have to decide whether to head north or south. What can we say about a potential dominant strategy in this game?
Answer:
go north.
Explanation:
The potential dominant strategy in this game is to go north. This can be stated through the concept of dominant strategy, which means that the chosen strategy will be the most appropriate according to someone's perspective, that is, the strategy that will be most beneficial and useful.
In the case of the scenario above, it is possible to affirm that the dominant strategy is to go north because the statement provides information that the general, you prefer to go to the northern restaurant with Jocelyn, so this is configured as the correct option, regardless if the Jocelyn may or may not go, because in a dominant strategy what matters is to choose the most useful option for you, regardless of the actions of third parties.
Discuss a prominent environmental or sustainability practice employed by a company that you believe has been forward thinking and successful in their efforts. How have their policies impacted the company, society, and the environment?
Explanation:
Sustainability is an increasingly recurrent issue on the world stage, which directly affects companies and the way their resources are used. Society increasingly demands that companies be environmentally responsible, as a way of protecting today's society and future generations, since natural resources are scarce and we depend on them for quality of life.
One company we can cite as an example is GOOGLE, a world-renowned company that promotes its environmental responsibility through its communication channels and adopts sustainable practices like the one announced in 2019, which until 2020 the company will not emit carbon in its products and in 2022 all hardware products used in the company will be made of recyclable materials.
Environmental policies have a positive impact on society as a whole, bringing the issue to the fore and making more and more people responsible for exercising sustainability. For the company, we can highlight the reduction of waste in the production process, adding continuous organizational improvement and better positioning of the company. in the market and for stakeholders.
Selected transactions for Sheridan Company are presented below in journal form (without explanations).
Date Account Title Debit Credit
May 5 Accounts Receivable 4,400
Service Revenue 4,400
12 Cash 1,930
Accounts Receivable 1,930
15 Cash 2,190
Service Revenue 2,190
Post the transactions to T-accounts. (Post entries in the order of journal entries presented in the question.)
Cash
5/55/125/15 5/55/125/15
5/55/125/15 5/55/125/15
Accounts Receivable
5/55/125/15
5+55+125+15=555555555....
The person granting another person to act on their behalf using a power of attorney is called a _______________. A) Potentate B) Premier C) Principal D) Agent E) None of the above Mark for follow up
Answer:
Principal
Explanation:
Credit Losses Based on Accounts Receivable At December 31, Schuler Company had a balance of $364,900 in its Accounts Receivable account and a credit balance of $4,200 in the Allowance for Doubtful Accounts account. The accounts receivable T-account consisted of $370,000 in debit balances and $5,100 in credit balances. The company aged its accounts as follows:
Current $303,000
0-60 days past due 42,000
61-180 days past due 17,000
Over 180 days past due 8,000
$370,000
In the past, the company has experienced credit losses as follows: 1% of current balances, 5% of balances 0-60 days past due, 15% of balances 61-180 days past due, and 40% of balances over six months past due. The company bases its allowance for doubtful accounts on an aging analysis of accounts receivable.
Required:
a. Prepare the adjusting entry to record the allowance for doubtful accounts for the year.
b. Show how Accounts Receivable (including the credit balances) and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet.
Answer:
a. First calculate the adjusting entry to record allowance.
Uncollectible for the year is;
= (303,000 * 1%) + (42,000 * 5%) + (17,000 * 15%) + (8,000 * 40%)
= $10,880
Adjusting entry = Uncollectable amount - Credit balance on allowance
= 10,880 - 4,200
= $6,680
DR Bad Debt Expense $6,680
CR Allowance for Doubtful accounts $6,680
b.
Current Assets:
Accounts Receivable $370,000
Less: Allowance for doubtful accounts ($10,880)
$359,120
Current Liabilities
Customers Overpayments $5,100
The current liability above arises from the credit balance of $5,100 in the Accounts receivable account. Accounts Receivable should have a debit balance so if a credit balance occurs it is an overpayment by a customer.
Rent expense in Volusia Company's 2016 income statement is $420,000. If Prepaid Rent was $70,000 at December 31, 2015, and is $95,000 at December 31, 2016, the cash paid for rent during 2016 is:_________
Answer:
$445,000
Explanation:
The rent in Volusian company income statement for 2016 is $420,000
The prepaid rent is $70,000 at December 31 2015 and $95,000 at December 31 2016
Therefore the cash paid for rent in 2016 can be calculated as follows
= $420,000+($95,000-$70,000)
= $420,000 + $25,000
= $445,000
The actual cash received from cash sales was $36,006 and the amount indicated by the cash register total was $36,010. Journalize the entry to record the cash receipts and cash sales.
CHART OF ACCOUNTS
Water Closet Co.
General Ledger
ASSETS REVENUE
110 Cash 410 Sales
111 Petty Cash 610 Interest Revenue
120 Accounts Receivable
129 Allowance for Doubtful Accounts
131 Interest Receivable
132 Notes Receivable EXPENSES
141 Merchandise Inventory 510 Cost of Goods Sold
145 Office Supplies 520 Sales Salaries Expense
146 Store Supplies 521 Advertising Expense
151 Prepaid Insurance 522 Depreciation Expense-
Store Equipment
181 Land 523 Delivery Expense
191 Store Equipment 524 Repairs Expense
192 Accumulated Depreciation-Store Equipment 529 Selling Expenses
193 Office Equipment 530 Office Salaries Expense
194 Accumulated Depreciation-Office Equipment 531 Rent Expense
532 Depreciation Expense-
LIABILITIES Office Equipment
210 Accounts Payable 533 Insurance Expense
211 Salaries Payable 534 Office Supplies Expense
213 Sales Tax Payable 535 Store Supplies Expense
214 Interest Payable 536 Credit Card Expense
215 Notes Payable 537 Cash Short and Over
EQUITY 538 Bad Debt Expense
310 Common Stock 539 Miscellaneous Expense
311 Retained Earnings 710 Interest Expense
312 Dividends
Answer:
Cash shorting = 36,010 - 36,006 = $4
DR Cash $36,006
Cash Short and Over $ 4
CR Sales $36,010
There is a shortage of cash as the sales figure is more than the cash amount. The Cash Short and Over account will therefore be debited to reflect this expense.
Because in many industries the cost of generating new ideas is so high, firms must charge a price ________ cost.a. equal to the marginalb. higher than the marginalc. lower than the marginald. equal to the average fixede. lower than the average fixed
Answer:
B. higher than the marginal
Explanation:
Marginal cost can be defined as the additional or extra cost that is being incurred by a company as a result of the production of an additional unit of a product or service.
Generally, marginal cost can be calculated by dividing the change in production costs by the change in level of output or quantity.
Because in many industries the cost of generating new ideas is so high, firms must charge a price higher than marginal cost in order to maximize profits or increase the amount of profits generated.
Last year there was no change in either the raw materials or the work in process beginning and ending inventories. However, finished goods, which had a beginning balance of $25,000, increased by $15,000. If the manufacturing costs incurred totaled $600,000 during the year, the cost of goods available for sale must have been:_______.
a. $585,000
b. $600,000
c. $610,000
d. $625,000
Answer:
d. $625,000
Explanation:
cost of goods available for sale = cost of goods manufactured during the current period + finished goods inventory at the beginning of the period
cost of goods manufactured during the current period = $600,000finished goods inventory at the beginning of the period = $25,000cost of goods available for sale = $600,000 + $25,000 = $625,000
cost of goods sold = cost of goods available for sale - ending inventory = $625,000 - $40,000 = $585,000
Betz Company's sales budget shows the following projections for next year:
Sales in Units: 1st Quarter = 60,000; 2nd Quarter = 80,000; 3rd Quarter = 45,000; 4th Quarter = 55,000
Inventory at the beginning of the year was 18,000 units. The finished goods inventory at the end of each quarter is to equal 30% of the next quarter's budgeted unit sales. How many units should be produced during the first quarter?
a) 24,000
b) 48,000
c) 66,000
d) 72,000
Answer:
c) 66,000
Explanation:
Calculation for How many units should be produced during the first quarte
Using this formula
Amount of Units produced = Ending inventory + Units sold + Beginning inventory
Let plug in the formula
Amount of Units produced= (30% × 80,000) + 60,000 − 18,000
Amount of Units produced= 24,000 + 60,000 − 18,000
Amount of Units produced=$66,000
Therefore the units that should be produced during the first quarter will be $66,000
Major areas in business decision making
Answer:
it is investment decision, financing decision and dividend decision
Explanation:
The major areas in business decision making are:
1 Investment decision
2. Financial decision
3.Dividend decision
Scubapro Corporation currently has 500,000 shares of common stock outstanding and plans to issue 200,000 more shares in a seasoned equity offering. The current shareholders have pre-emptive rights on any new issues of common stock by Scubapro Corporation. How many shares would an investor who currently has 20,000 shares, have the right to buy if she exercises her pre-emptive right?A) 200,000 shares.
B) 120,000 shares.
C) 20,000 shares.
D) 12,000 shares.
E) 8,000 shares.
Answer:
Scubapro Corporation
The investor who currently has 20,000 shares has the right to buy this number of shares, if she exercises her preemptive right:
E) 8,000 shares.
Explanation:
Data and Calculations:
Outstanding common stock = 500,000
Planned issue of additional shares = 200,000
Proportion of new issue to outstanding = 0.40 (200,000/500,000)
For an investor with 20,000 shares, she has the right to buy 8,000 (20,000 * 0.40) additional shares.
Barlow owns the surface rights for Canyon Ranch, but does not own the subsurface rights. Dusty owns the subsurface rights. Canyon Ranch includes a house, a bunkhouse, and two barns, which are damaged when Dusty is excavating for minerals under the surface. Most likely responsible for the damage is:________.
A) Dusty.
B) Barlow.
C) Dusty and Barlow.
D) no one.
Answer:
A) Dusty.
Explanation:
Generally, when you are dealing with property rights and any damages that occur to real property, the individual that possesses the oldest structure can sue other individuals that damage his/her structure by building or developing a new one.
E.g. in many cities, buildings or even homes tend to be built right next to other homes or buildings (specially in down town areas). If you are building a house right next to an existing house and the walls are damaged because because you dug to build a basement, then you are responsible and liable for the damages even if you never invaded the other property.
Use the information for the question(s) below. Rosewood Industries has EBIT of $450 million, interest expense of $175 million, and a corporate tax rate of 35% If Rosewood had no interest expense, its net income would be closest to:___________ a. $430 million b. $160 million c. $290 million d. $405 million
Answer:
$180 million
Explanation:
Net income is calculated as;
= (EBIT - Interest expense)(1 - tax)
Given that;
EBIT = $450 million
Interest expense = $175 million
Tax = 35%
Net income = (450 - 175)(1 - 0.35)
Net income = (275)(0.65)
Net income = $178.75
Net income = $180 million approximated.
Rosewood's net income is closest to $180 million.
Sick time and vacation time are considered a benefit because even
though you are not at work you still get paid.
True
False
Answer:
TRUEE
i just know
Explanation:
Hope this helps!
if so please dont forget to mark BRAINLIST!!
thx
Which of the following is a type of liability?
A. A revenue stream
B. A liquid asset
C. Accounts payable
D. Accounts receivable
Answer:
c
Explanation:
An optimal procedure for organizations to accept projects is to specify a return on investment (ROI) and fund only projects that meet this criterion. A. True B. False
Answer:
False
Explanation:
Capital budgeting is needed in any project work as it entails the process and procedures taken in evaluation and selection of long-term investments that are consistent with the firm's goal of maximizing owner's wealth.
Normally, before a company invest or undergo any project, background work is done to know if the project will yet profit or no, feasibility study is carried out and things are put in place. If it is favourable for the firm and profit is high, firms may choose to invest after weighing the pros and cons (advantage and disadvantage) of the project before investment. So return of investment initial investment is not really considered when taking up a project as all project is done at their own risk.
In 2010, real GDP was $13.2 trillion and nominal GDP was $14.6 trillion. What was the GDP deflator for that year?a. 9.6% lower b. 9.6% higher c. 10.6% lower . d. 10.6% higher
Answer:
d. 10.6% higher
Explanation:
Given that;
Real GDP = $13.2 trillion
Nominal GDP = $14.6 trillion
GDP deflator = (Nominal GDP/Real GDP)× 100)
Hence,
GDP deflator = (14.6 / 13.2 ) × 100
GDP deflator = 110.6%
Thus,
= 110.6 - 100
= 10.6% higher
Anna Garden recently opened her own basketweaving studio. She sells finished baskets in addition to selling the raw materials needed by customers to weave baskets of their own. Unfortunately, owing to space limitations, Anna is unable to carry all varieties of kits originally assembled and must choose between two basic packages.
The Basic Kit includes undyed, uncut reeds (with dye included) for weaving one basket. This basic package costs Anna $16 and sells for $30. The second kit, called Stage 2, includes cut reeds that have already been dyed. With this kit the customer need only soak the reeds and weave the basket. Anna produces the Stage 2 kit by using the materials included in the Basic Kit. Because she is more efficient at cutting and dying reeds than her average customer, Anna is able to produce two Stage 2 kits in one hour from one Basic Kit. (She values her time at $18 per hour.) The Stage 2 kit sells for $36.
Prepare an incremental analysis for Anna's basket weaving studio.
Answer:
Stage 1 kit Stage 2 kit Differential amount
Selling price $30 $36 $6
Materials cost ($16) ($16) $0
per unit
Additional labor $0 $18/2 = ($9) ($9)
cost per unit
Contribution margin $14 $11 ($3)
per unit
Anna will lose $3 for every Stage 2 kit that she sells. Only if he is able to sell a much higher quantity of Stage 2 kits would it be worth it, but under current conditions Anna should focus on selling Stage 1 kits.
As an independent student Sally borrowed $4,000 her first semester of college through an Unsubsidized Stafford loan at 6.8% APR, compounded monthly. After her first semester, Sally was able to work her way through school and she graduated three years later without any additional loans. Since Sally did not make any loan payments while she was in school, what is her loan balance upon graduation? a) $4,000.00 b) $4,902.36 c) $7,869.48 d) $7,834.82
Answer:
CPT FV=4902.3689
Explanation:
By using financial calculator:
Given:
PMT = $0
PV = $4,000
N = 12x3 = 36 times
I/Y = 6.8% / 12
By using excel formulas
=FV(6.8%/12,12*3,0,4000)
Future value = $4,902.3689
CPT FV=4902.3689
Net Zero Products, a wholesaler of sustainable raw materials. Prepared the following aging of receivables analysis.
Total 0 1 to 30 31 to 60 61 to 90
Accounts receivable $171,000 $96,000 $34,000 $15,000 $12,000
Percent uncollectible 1% 4% 6% 9%
Required:
a. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method.
b. Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $2,600 credit.
Answer:
Net Zero Products
a) The balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method is $4,300.
b) Adjusting Entry to record bad debt expense:
Debit Bad Debt Expense $1,700
Credit Allowance for Doubtful Accounts $1,700
To record the bad debt expense for the period and bring the allowance to $4,300 credit balance.
Explanation:
a) Data and Calculations:
Aging of receivables analysis:
Total (days) 0 1 to 30 31 to 60 61 to 90 above 90
Accounts receivable $171,000 $96,000 $34,000 $15,000 $12,000
Percent uncollectible 1% 4% 6% 9%
Allowance for doubtful 0 $960 $1,360 $900 $1,080
Total allowance for doubtful = $4,300 (960 + 1,360 + 900 + 1,080)
b) The adjustment in the Allowance for Doubtful Accounts needed for the current period is $1,700 ($4,300 - $2,600). This amount will be debited to the Bad Debts Expense account and credited to the Allowance for Doubtful Accounts. It will bring the total for the Allowance for Doubtful Accounts to $4,300 from $2,600.
Compute the standard cost for one hat, based on the following standards for each that:_______. Standard material: 3/4 yard of fabric at $5.00 per yard Standard labor: 2 hours at $5.75 per hour Factory overhead: $3.20 per direct labor hourRound your answer to two decimal places. Total standard cost $______
Answer:
$21.65
Explanation:
Computation for the Total standard cost
Using this formula
Total standard cost = Material cost + Labor cost + Overhead cost
Let plug in the formula
Total standard cost = 3/4*5 + 2*5.75 + 3.2*2
Total standard cost= $21.65
Therefore the Total standard cost will be $21.65
Some recent financial statements for Smolira Golf Corp. follow:
SMOLIRA GOLF CORP.
2014 and 2015 Balance Sheets
Assets Liabilities and Owners' Equity
2014 2015 2014 2015
Current assets Current liabilities
Cash $ 24,056 $ 24,200 Accounts payable $ 23,284 $ 27,200
Accounts receivable 12,548 15,300 Notes payable 12,000 10,900
Inventory 25,592 27,200 Other 11,671 15,900
Total $62,196 $ 66,700 Total $ 46,955 $ 54,000
Long-term debt $ 90,000 $103,000
Owners' equity
Common stock and
paid-in surplus $42,000 $42,000
Accumulated retained
earnings 208,936 233,000
Fixed assets
Net plant and
equipment $325,695 $365,300 Total $250,936 $275,000
Total assets $387,891 $432,000 Total liabilities and
owners' equity $387,891 $432,000
SMOLIRA GOLF CORP.
2015 Income Statement
Sales $336,329
Cost of goods sold 231,000
Depreciation 21,600
Earnings before interest and taxes $ 83,729
Interest paid 14,400
Taxable income $ 69,329
Taxes (35%) 24,265
Net income $45,064
Dividends $21,000
Retained earnings 24,064
1. The company's profit margin is __________ percent.
2. The total asset turnover is __________ times.
3. The equity multiplier is __________ times.
4. Using the Du Pont Identity, the company's ROE is __________ percent.
Answer:
1. The company's profit margin is 13.4% percent.
profit margin = net income / net sales = $45,064 / $336,329 = 13.4%
2. The total asset turnover is 0.82 times.
asset turnover ratio = net sales / average assets = $336,329 / [($387,891 + $432,000)/2] = $336,329 / $409,945.50 = 0.82
3. The equity multiplier is 1.7 times.
equity multiplier = average total assets / average total equity = $409,945.50 / [($205,936 + $275,000)/2] = $409,945.50 / $240,468 = 1.70
4. Using the Du Pont Identity, the company's ROE is 18.68% percent.
ROE = profit margin x asset turnover x equity multiplier (or financial leverage) = 0.134 x 0.82 x 1.7 = 0.1868 = 18.68%
Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular item were available for sale during the calendar year:
Jan. 1 Inventory 10,000 units at $75.00
Mar. 18 Sale 8,000 units
May 2 Purchase 18,000 units at $77.50
Aug. 9 Sale 15,000 units
Oct. 20 Purchase 7,000 units at $80.25
The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5. Round unit cost to two decimal places, if necessary.
Answer:
Please see attached solution
Explanation:
a. Cost of goods sold . Detailed explanation attached.
b. Ending inventory. Detailed explanation attached.
Note 1.
Weighted average cost per unit on January 20
= $1,545,000/20,000 units
= $77.5
Note 2
Weighted average cost per unit on January 30
= $948,000/12,000 units
= $79.00
A tax system in which the tax rate on everyone's first $10,000 of income is 10 percent, the tax rate on everyone's second $10,000 of income is 15 percent, and the tax rate on all income over $20,000 is 25 percent is a(n):
Answer:
The appropriate response is "Progressive tax".
Explanation:
Progressive taxation appears to mean that the tax rate is higher for increased organizations as well as lower for low-income communities. Whenever the taxable income leads to higher, the above tax rate tends to increase. The approximately equal tax rate would be taxation that is set regardless including its up or down in tax liability.So that above is the correct answer.
After graduating law school Amy has to start repaying her $110,000 in loans. Assuming the annual interest rate is 7.5% over a 20 year repayment period, what will be the monthly loan payments?
a. $886.15
b. $458.34
c. $899.18
d. $906.93
Answer:
monthly payment= $886.15
Explanation:
Giving the following information:
PV= $110,000
i= 0.075/12= 0.00625
n= 12*20= 240
To calculate the monthly payment, we need to use the following formula:
monthly payment= (PV*i) / [1 - (1+i)^(-n)]
monthly payment= (110,000*0.00625) / [1 - (1.00625^-240)]
monthly payment= $886.15