# Accounting questions | Business & Finance homework help

1. determine the difference between the monthly payments on a \$120,000 home at 61∕2% and at 8% for 25 years \$140.10 per monthCash price: \$5,600Down payment: \$0Cash or trade months with bank-approved credit; amount financed: \$5,600Finance charge: \$2,806Total payments: \$8,406What is the APR by table lookup? A. 16.50%–16.75%B. 16.75%–17.00%C. 17.00%–17.25%D. 17.25%–17.50% 2. Joe Sullivan invests \$9,000 at the end of each year for 20 years. The rate of interest Joe gets is 8%annually. Using the tables in the Business Math Handbook that accompanies the course textbook,determine the final value of Joe’s investment at the end of the 20th year on this ordinary annuity.A. \$411,858.00B. \$411,588.00C. \$88,632.90D. \$88,362.90 3.Jen purchased a condo in Naples, Florida, for \$699,000. She put 20% down and financed the rest at5% for 35 years. What are Jen’s total finance charges?A. \$606,823.20B. \$457,425.60C. \$626,863.20D. \$600,000.00 4.Cost of car: \$26,000Residual value: \$6,000Life: 5 yearsUsing the given information, determine the depreciation expense for the first year straight-line method?A. \$6,000B. \$4,000C. \$4,400D. \$5,200 5. John Sullivan bought a new Brunswick boat for \$17,000. He made a \$2,500 down payment on it. Thebank’s loan was for 60 months, and the finance charges totaled \$4,900. What is his monthly payment?A. \$332.33B. \$232.33C. \$323.33D. \$313.33 6. At the beginning of each year, Bill Ross invests \$1,400 semiannually at 8% for nine years. Using thetables in the Business Math Handbook that accompanies the course textbook, determine the cash value ofthe annuity due at the end of the ninth year.A. \$37,399.68B. \$38,739.68C. \$37,339.68D. \$37,939.86 7. Dick Hercher bought a home in Homewood, Illinois, for \$230,000. He put down 20% and obtained amortgage for 25 years at 8%. What is the total interest cost of the loan?A. \$242,144.00B. \$184,000.00C. \$242,411.00D. \$327,372.80 8. Lee Company has a current ratio of 2.65. The acid test ratio is 2.01. The current liabilities of Lee are\$45,000. Assuming there are no prepaid expenses, the dollar amount of merchandise inventory isA. \$28,800.B. \$90,450.C. \$28,008.D. \$90,540. 9. Ben Brown bought a home for \$225,000. He put down 20%. The mortgage is at 6 ½% for 30 years.Using the tables in the Business Math Handbook that accompanies the course textbook, determine hismonthly payment.A. \$1,139.40B. \$1,319.40C. \$1,319.04D. \$1,216.80 10. A truck costs \$35,000 with a residual value of \$2,000. Its service life is five years. Using the decliningbalancemethod at twice the straight-line rate, the book value at the end of year 2 isA. \$22,000.B. \$35,000.C. \$12,600. D. \$33,000.

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