# While Mary Corens was a student at the University of Tennessee, she borrowed \$8,000 in student loans at an annual interest rate of 9%. If Mary repays \$1,600 per year, then how long (to the nearest year) will it take her to repay the loan? Do not round intermediate calculations. Round your answer to the nearest whole number.

6.93 years

Explanation:

For computing the number of years we use the NPER formula i.e to be shown in the attachment

Given that

Present value = \$8,000

Future value = \$0

Rate of interest = 9%

PMT = \$1,600

The formula is shown below:

= NPER(Rate;PMT;-PV;FV;type)

The present value come in negative

So, after applying the above formula, the number of years is 6.93 years

## Related Questions

During March, Zea Inc. transferred \$55,000 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of \$61,000. The journal entries to record these transactions would include a:

See below

Explanation:

Given the above information, the journal entries to record these transactions would be ;

Finished goods Dr \$55,000

______ Work in process Cr \$55,000

(Being record of transfer from work in process to finished goods)

Cost of goods sold Dr \$61,000

__________ Finished goods Cr \$61,000

(Being record of cost of goods sold)

When an interviewer introduces a new topic area, she is using aA trick question
B secondary question
C turn-taking question
D primary question

D. Primary question

Regarding the AQCD​ criteria, strive to include all high quality factors in an external assessment for a firm. A high quality factor will meet​ ______ of the AQCD​ criteria; a low quality factor will meet​ ______ of the AQCD criteria. A. ​3; 1 B. 3 or​ 4; 2 or fewer C. 3 or​ 4; 0 D. ​4; 0 E. ​All; none

Option B) 3 or​ 4; 2 or fewer

Explanation:

A high quality factor will not meet 3 or 4 and low quality factor will not meet 1 or 0 so option A, C and D are incorrect.

The correct option is B. 3 or 4; 2 or fewer as a high quality factor will meet three or four of the AQCD criteria; a low quality factor will meet two or fewer of the AQCD critieria.

Benjamin, Inc., operates an export/import business. The company has considerable dealings with companies in the country of Camerrand. The denomination of all transactions with these companies is alaries (AL), the Camerrand currency. During 2017, Benjamin acquires 20,000 widgets at a price of 8 alaries per widget. It will pay for them when it sells them. Currency exchange rates for 1 AL are as follows: September 1, 2017 \$0.46 December 1, 2017 0.44 December 31, 2017 0.48 March 1, 2018 0.45 Assume that Benjamin acquired the widgets on December 1, 2017, and made payment on March 1, 2018. What is the effect of the exchange rate fluctuations on reported income in 2017 and in 2018

2017 = (\$6,400)

2018 = \$4,800

Explanation:

The effect of the exchange rate fluctuations on reported income in 2017 and in 2018 is shown below:-

Particulars                               Amount

Purchased widgets                 20,000

Purchased price                       8

Total inventory                        160,000

(20,000 × 8)

Total inventory at Dec 1,2017 \$70,400

(160,000 × \$0.44)

Total inventory at Dec 31,2017 \$76,800

(160,000 × \$0.48)

Foreign exchange gain/(loss)

at reporting date                    (\$6,400)

(\$70,400  - \$76,800)

Total inventory at March 1, 2018 \$72,000

(160,000 × \$0.45)

Foreign exchange gain/(loss)

on March 1, 2018                         \$4,800

(\$76,800  - \$72,000)

So, the Foreign exchange loss in 2017 is (\$6,400) and the Foreign exchange gain in 2018 is \$4,800

Crispy Fried Chicken bought equipment on January 2​, 2018​, for \$ 33,000. The equipment was expected to remain in service for four years and to operate for 6,750 hours. At the end of the​ equipment's useful​ life, Crispy estimates that its residual value will be \$ 6,000. The equipment operated for 675 hours the first​ year, 2,025 hours the second​ year, 2,700 hours the third​ year, and 1,350 hours the fourth year.Requirements
1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods: straight-line, units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared.
2. Which method tracks the wear and tear on the equipment most closely?

The straight-line method applies a consistent depreciation expense every year, the units-of-production method correlates depreciation with actual usage, and the double-declining-balance method accelerates depreciation. The units-of-production method tracks wear and tear on the equipment most closely.

### Explanation:

Straight-Line Method:

Depreciation expense per year = (Cost - Residual value) / Useful life = (\$33,000 - \$6,000) / 4 = \$6,750

Accumulated depreciation per year = Depreciation expense × Number of years

Book value per year = Cost - Accumulated depreciation

Units-of-Production Method:

Depreciation expense per hour = (Cost - Residual value) / Total estimated hours = (\$33,000 - \$6,000) / 6,750 = \$3.26

Depreciation expense per year = Depreciation expense per hour × Number of hours operated

Accumulated depreciation per year = Sum of depreciation expenses each year

Book value per year = Cost - Accumulated depreciation

Double-Declining-Balance Method:

Depreciation expense = Book value at beginning of year × (2 / Useful life)

Accumulated depreciation per year = Sum of depreciation expenses each year

Book value per year = Cost - Accumulated depreciation

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The straight-line, units-of-production, and double-declining-balance depreciation methods result in different depreciation expenses which are based on the cost, salvage value, and usage of the equipment. The units-of-production method is the most accurate in tracking the wear and tear of the equipment as it considers the actual hours of operation.

### Explanation:

The depreciation schedules for the three different methods; straight-line, units-of-production, and double-declining-balance, can be calculated as follows:

• Straight-line depreciation: It involves spreading the cost of the asset evenly over its useful life. The annual depreciation is calculated as (Cost - Salvage Value) / Useful Life. Here, it would be (\$33,000 - \$6,000) / 4 = \$6,750 per year.
• Units-of-production depreciation: It involves depreciating the asset based on its usage or output. The depreciation per unit is calculated as (Cost - Salvage Value) / Total units of production. Here, it would be (\$33,000 - \$6,000) / 6,750 = \$4 per hour. Multiply this rate by the number of hours each year to determine yearly depreciation.
• Double-declining balance depreciation: It involves depreciating the asset faster in the early years of its life. The annual depreciation is calculated as 2 * (Cost - Accumulated Depreciation) / Useful Life. Note that the salvage value is not considered in this calculation. But depreciation stops when the book value equals the salvage value.

The units-of-production method most accurately tracks the wear and tear on the equipment as it directly ties the depreciation expense to the hours of the equipment's operation.

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Which examples demonstrate common Governance workplaces and employers? Check all that apply.Melissa works in Washington, D.C., writing and voting on federal laws.
Danette uses a vehicle to deliver US mail to people who live in a city.
Gavin was elected as a city council member in his hometown.
Vito works in a US embassy in China helping Americans with paperwork.