Another bank is also offering favorable terms, so van decides to take a loan of $23,000 from this bank. he signs the loan contract at 13.00% compounded daily for four months. based on a 365-day year, what is the total amount that van owes the bank at the end of the loan’s term? (hint: to calculate the number of days, divide the number of months by 12 and multiply by 365.) $24,017.91 $24,858.54 $24,978.63 $25,458.98

Ans. The total amount that Van owes the bank at the end of the loan’s term is A) 24,017.91

Explanation:

Hi, first, let´s do what the hint of the problem says. Let´s find the number of days.

Then, we have to turn that compounded daily rate to an effective daily rate, that is by dividing the rate by 365.

This means that 13% compounded daily is equal to 0.0356164%

Now, we can use the following equation to find the future value (in 4 months) of this obligation.

Where:

r= Effective rate of the loan (in our case, effective daily)

n= days to pay the loan (121.6667 days)

The math to this as follows.

Since I used the whole decimals to find the exact value, my result is close to answer A), therefore, total amount that Van owes the bank at the end of the loan’s term is $24,017.91.

Best of luck

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.