According to the information, we can infer that the Weighted Average Cost of Capital (WACC) that Schauffele should use to discount the cash flows of Varner is approximately 5.18%.
How to calculate the WACC?To calculate the WACC, we need to consider the cost of equity and the cost of debt.
Cost of Equity:
Schauffele's Beta is given as 1.24, and the Market Risk Premium is 6.7%. Using the Capital Asset Pricing Model (CAPM), we can calculate the cost of equity:
Cost of Equity = Risk-Free Rate + Beta * Market Risk PremiumCost of Equity = 2.0% + 1.24 * 6.7% = 10.408%Cost of Debt:
The Yield to Maturity (YTM) for Varner's comparable bonds is given as 3.20%. Since Varner and its rival have a similar capital structure, we can use the YTM of the rival's bonds as the cost of debt for Varner.
Weighted Average Cost of Capital (WACC):
WACC = (Equity / Total Capital) * Cost of Equity + (Debt / Total Capital) * Cost of DebtTo calculate the weights of equity and debt, we need to consider the market values:
Equity = Number of Shares * Market Price per Share = 240,000 * $3.50 = $840,000Debt = Long Term Debt = $16,000,000Total Capital = Equity + Debt = $840,000 + $16,000,000 = $16,840,000Now we can calculate the WACC:
WACC = (840,000 / 16,840,000) * 10.408% + (16,000,000 / 16,840,000) * 3.20% = 5.1836%According to the above we can conclude that the Weighted Average Cost of Capital (WACC) that Schauffele should use to discount the cash flows of Varner is approximately 5.18%.
Note: This question is incomplete. Here is the complete information:
Schauffele Corporation operates as a manufacturer of heavy duty machinery used in the automotive industry. The company is publicly traded with 500,000 shares of stock outstanding, currently trading at a market price of $32 per share. The company has issued debt by selling 10,000 bonds with a coupon rate of 3.45%, annual payments, a remaining maturity of 8 years and a Face Value of $1,000. The bonds currently offer a Yield To Maturity of 3.60%. Schauffele’s Beta is 1.24 and Tax Rate is 20%; the risk-free rate is 2.0% and the Market Risk Premium is 6.7%.
Schauffele is considering an acquisition of Varner, Inc., a privately-held firm that manufactures healthcare diagnostic equipment. Varner has 240,000 shares of stock with a book value of $3.50 per share and long term debt of $16,000,000. Varner’s top rival, a company that competes in every market against Varner and employs the same capital structure of 60/40 Debt/Equity as Varner, is publicly traded and has a Beta of 0.87; the competing company also has bonds trading in the market with a Yield To Maturity of 3.20%. Varner’s Tax Rate is 21%.
Calculate the Weighted Average Cost of Capital that Schauffele should use to discount the cash flows of Varner. Express your answer as a percentage rounded to two places (.34567 rounds to 34.57% for example).
Learn more about companies in: https://brainly.com/question/30532251
#SPJ4
Which button in the Print Preview tab allows users to set specific margins on the page of a report?
Portrait
Landscape
Text Formatting
Page Setup
Answer:
Page Setup
Explanation:
Page set up allows users to determine how a print out will appear. The user can customize the page size and layout. The page setup dialog box is available under the Layout tab in the Ribbon menu.
Page layout makes it possible for users to set the print parameters. These parameters include paper size, page orientation, page margins, and quality of the print.
what does the abbreviation of CD stand for. (this is financial i put it under business because it is the closest thing to financial literacy)
A. certificate of disposal
B.certificate of interest
C.credit of deferral
D.certificate of deposit
Answer:
D) certificate of deposit.
Explanation:
What is the primary accounting standard-setting body in the united states?.
Answer:
the financial accounting standard board
What is an example of form utility
9. The financial aid you receive is called
1) an award
2) a grace period
3) a renewable award
4) non-renewable award
The time between failures for an air conditioner is exponentially distributed with a mean of 25 months. What is the probability that the next failure will not occur before 30 months have elapsed?
a. in excess of .4 but not in excess of .6
b. in excess of .3 but not in excess of .4
c. none of the choices
d. in excess of .2 but not in excess of .3
e. not in excess of .2
The probability that the next failure of an air conditioner will not occur before 30 months have elapsed is not in excess of 0.2. To find the probability that the next failure will not occur.
The exponential distribution is often used to model the time between events that occur randomly and independently over a continuous time period. In this case, the time between failures for the air conditioner follows an exponential distribution with a mean of 25 months.
To find the probability that the next failure will not occur before 30 months have elapsed, we can use the cumulative distribution function (CDF) of the exponential distribution. The CDF of an exponential distribution with mean μ is given by P(X ≤ x) = 1 - e^(-x/μ), where x represents the time elapsed.
Substituting the values, we have P(X > 30) = 1 - P(X ≤ 30) = 1 - (1 - e^(-30/25)) = e^(-6/5) ≈ 0.301.
Thus, the probability that the next failure will not occur before 30 months have elapsed is in excess of 0.3 but not in excess of 0.4. Therefore, the correct answer is option b, "in excess of .3 but not in excess of .4."
Learn more about Probability: brainly.com/question/13604758
#SPJ11
The probability that the next failure of an air conditioner will not occur before 30 months have elapsed is not in excess of 0.2. To find the probability that the next failure will not occur.
The exponential distribution is often used to model the time between events that occur randomly and independently over a continuous time period. In this case, the time between failures for the air conditioner follows an exponential distribution with a mean of 25 months.
To find the probability that the next failure will not occur before 30 months have elapsed, we can use the cumulative distribution function (CDF) of the exponential distribution. The CDF of an exponential distribution with mean μ is given by P(X ≤ x) = 1 - e^(-x/μ), where x represents the time elapsed.
Substituting the values, we have P(X > 30) = 1 - P(X ≤ 30) = 1 - (1 - e^(-30/25)) = e^(-6/5) ≈ 0.301.
Thus, the probability that the next failure will not occur before 30 months have elapsed is in excess of 0.3 but not in excess of 0.4. Therefore, the correct answer is option b, "in excess of .3 but not in excess of .4."
Learn more about Probability: brainly.com/question/13604758
#SPJ11
The following information is available regarding Siesta Corporation for the most recent year: Net income $120,000; Preferred dividends $40,000; Average number of shares outstanding 100,000; Retained earnings balance $56,000. What is the earnings per share for the current year?
a. $0.60.
b. $0.80.
c. $0.20.
d. $1.20.
A company receives equipment worth $50,000 in exchange for 10,000 shares of $2 par value stock. This transaction includes an increase to:
a. common stock for $20,000.
b. equipment for $30,000. c
c. ommon stock for $50,000.
d. additional paid-in capital for $20,000.
The correct answer to the 1st question is option (b) i.e., the earnings per share for the current year is $0.80.This means that for every share of Siesta Corporation's stock, the company earned $0.80 in the most recent year. The correct answer to the 2nd question is option (a) common stock for $20,000.
The earnings per share for the current year can be calculated by dividing the net income minus preferred dividends by the average number of shares outstanding. In this case, the net income is $120,000 and the preferred dividends are $40,000. The average number of shares outstanding is 100,000.
To calculate the earnings per share, we subtract the preferred dividends from the net income:
$120,000 - $40,000 = $80,000
Then we divide the result by the average number of shares outstanding:
$80,000 ÷ 100,000 = $0.80
Therefore, the earnings per share for the current year is $0.80.This means that for every share of Siesta Corporation's stock, the company earned $0.80 in the most recent year.
Regarding the second question, when a company receives equipment worth $50,000 in exchange for 10,000 shares of $2 par value stock, there are two accounts that are affected: common stock and equipment.
The par value of the stock is $2, so the common stock account will increase by 10,000 shares multiplied by the par value:
10,000 shares × $2 par value = $20,000 increase in common stock
The equipment received is worth $50,000, so the equipment account will increase by $50,000.
Therefore, the correct answer is: a. common stock for $20,000.
Learn more about earnings per share from the given link:
https://brainly.com/question/32586753
#SPJ11
Do you think the current system of punishment for cimes committed in the United States works? Why or why not? What would you change about the system?
Answer:
According to my understanding of the text, the author suggests that the current system of punishment in the United States is not effective, as evidenced by overcrowded jails. They suggest that not everyone who commits a crime needs to be incarcerated and that some may benefit more from rehabilitation or counseling, particularly those who have experienced past traumas or abuse. The author suggests that this approach should depend on the specific crime committed, with substance abuse users being directed towards rehabilitation and juveniles in detention centers being treated differently depending on their offense. The author notes that there is no rehabilitation in incarceration and that it may not be the best option for some offenders. However, for offenders who commit violent crimes such as sex offenders, murderers, and criminals, the author believes that harsh punishment is warranted. The author also disagrees with pardoning drug traffickers and dealers who have not committed violent crimes and believes that they should be incarcerated for their offenses, which they consider to be just as bad as violent crimes.
i need help with this its kinda hard
Legal authorization by a brand owner to allow another company to "rent" its brand name for a fee is called
Answer:
The appropriate answer is "License agreement".
Explanation:
A written agreement only between various firms where a property owner allows perhaps another entity throughout accordance with a certain set of requirements called a license agreement.In so far as it has jurisdiction, the consequence including its license is to terminate or ease the ruling of conflict. It should be the presumption that perhaps the license should be a province of security.A $282,000 bond was redeemed at 98 when the carrying value of the bond was $274,950. The journal entry for the redemption would include a
a.gain on bond redemption of $1,410.
b.gain on bond redemption of $5,640.
c.loss on bond redemption of $1,410.
d.loss on bond redemption of $7,050
The correct journal entry for the redemption would include a loss on bond redemption of $1,410.
c. loss on bond redemption of $1,410.
when a bond is redeemed at a price lower than its carrying value, a loss on bond redemption is recognized. the loss is calculated as the difference between the carrying value of the bond and the redemption price.
In this case, the carrying value of the bond was $274,950, and it was redeemed at 98, which means it was redeemed at 98% of its face value. the redemption price can be calculated as 98% of $282,000, which is $276,360.
the loss on bond redemption is calculated as:
loss on bond redemption = carrying value of the bond - redemption price
loss on bond redemption = $274,950 - $276,360
loss on bond redemption = -$1,410
since the result is negative, it indicates a loss on bond redemption. i apologize for any confusion caused. let's reevaluate the calculation for the gain or loss on bond redemption.
when a bond is redeemed at a price lower than its carrying value, it results in a gain for the issuer. conversely, if the bond is redeemed at a price higher than its carrying value, it results in a loss for the issuer.
in this case, the carrying value of the bond was $274,950, and it was redeemed at 98, which means it was redeemed at 98% of its face value. the redemption price can be calculated as 98% of $282,000, which is $276,360.
to determine the gain or loss on bond redemption, we compare the redemption price to the carrying value of the bond:
gain or loss on bond redemption = redemption price - carrying value of the bond
gain or loss on bond redemption = $276,360 - $274,950
gain or loss on bond redemption = $1,410
since the result is positive, it indicates a gain on bond redemption.
Learn more about bond here:
https://brainly.com/question/31994049
#SPJ11
A project has an initial cost of $40,000, expected net cash inflows of $8,000 per year for 11 years, and a cost of capital of 10%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to the nearest cent.
Answer:
the net present value is $11,961
Explanation:
The computation of the project NPV is as follows;
The net present value is
= Present value of cash inflows - initial investment
= $8,000 × PVIFA factor for 11 years at 10% - $40,000
= $8,000 × 6.4951 - $40,000
= $51,961 - $40,000
= $11,961
Hence, the net present value is $11,961
The same is to be considered
Match the terms in Column I with the descriptions in Column II
Column I
1. Religious values
2. Prudential values
3. Intellectual values
4. Accountability
5. Aesthetic values
6. Integrity
7. Economic values
Column II
A. concerned with one's religious doctrine
B. concerned with beauty and appearance concerned with one's own interests
C. concerned with reasoning
D. concerned with cost, efficiency, and control
E. people with this value behave in a manner that is consistent with ethical beliefsa
F. quality in individuals whereby each knows, understands, considers and accepts
G. the impact and consequences of personal actions and decisions
Answer:
Where is a picture of the assignment
Explanation:
A prospectus
Group of answer choices
A. Ends all contractual promises
B. Is a written disclosure document
C. Is forbidden under federal law
D. Is not required
A prospectus is a written disclosure document that provides detailed information about a financial investment offering. It is required for publicly traded securities and registered investment funds to ensure transparency and protect investors. The correct option is B.
A prospectus is a written disclosure document. It is a formal legal document that provides detailed information about a financial investment offering, such as stocks, bonds, or mutual funds.
It serves as a communication tool between the issuing company and potential investors, providing them with essential information to make informed investment decisions.
The prospectus typically contains information about the investment's objectives, risks, terms and conditions, historical performance, management team, and financial statements.
It aims to provide transparency and enable investors to evaluate the investment opportunity accurately.
While a prospectus is not required for all investment offerings, it is commonly required for publicly traded securities and registered investment funds.
It ensures compliance with securities laws and regulations, such as those enforced by the Securities and Exchange Commission (SEC) in the United States.
The prospectus serves as a means to protect investors by ensuring they have access to relevant information before committing their funds.
In summary, a prospectus is a crucial written disclosure document that provides comprehensive information about an investment opportunity, allowing potential investors to make informed decisions and ensuring regulatory compliance.
The correct option is B. Is a written disclosure document.
To know more about prospectus refer here:
https://brainly.com/question/30069711#
#SPJ11
What are some jobs you can get before 16?
Answer:
Babysitting.
You can work at a lot of places, normal jobs, you're just required to takes breaks because you're a minor. You really just have to check with businesses in your area and see where you can work.
My friends work at a pizza place in our town, they were all under 16 when they started working there.
Explanation:
if your a real larry fan you can finsh this song
This aint no race but i still take first.....
finsh it
Answer:ooh idk
Explanation:
Answer:
first place.. take yo man just to shove it in yo face..
lolz i haven't listened to that in a while
Explanation:
ttttpppwwkkk
When government uses Judgment by Performance criterion, a firm is considered a monopoly if it uses predatory pricing strategies, or some other approach to minimize competition in the market.
a. true b. false
When government uses Judgment by Performance criterion, a firm is considered a monopoly if it uses predatory pricing strategies, or some other approach to minimize competition in the market is "True."
What is a monopoly?A monopoly is a type of market structure characterized by the existence of only one firm that controls a significant portion of the market share.
The following are some characteristics of a monopoly:
It is the sole supplier of a product or service in the marketIt can set the price of the product or service to maximize its profits.Barriers to entry are high, preventing new firms from entering the market.Why is predatory pricing considered to be a strategy for minimizing competition?Predatory pricing is a pricing strategy that entails pricing products or services below the cost of production in order to force rivals out of business and gain market share.
As a result, firms can monopolize the market and set higher prices.
When predatory pricing is used to eliminate competitors and monopolize the market, it is referred to as a predatory pricing strategy.
As a result, when the government utilizes Judgment by Performance criteria, a company is deemed to be a monopoly if it uses predatory pricing tactics or any other approach to restrict competition in the market.
Hence, its true.
To know more on monopoly visit:
https://brainly.com/question/31918762
#SPJ11
what is the objective of job enlargement? group of answer choices to assess the relative dollar value of each job to an organization to decrease the burden of decision-making responsibilities for employees to decrease the impact a job has on the lives of other people to make jobs less repetitive and more interesting to increase efficiency by identifying the best way to perform a job
The objective of job enlargement is to make jobs less repetitive and more interesting by adding tasks and responsibilities that broaden the scope of the job. This results in increased job satisfaction and motivation for employees and can improve efficiency within the organization.
What are the potential benefits of implementing job enlargement in an organization?Process expansion has numerous potential advantages for an employer along with: growing activity delight and motivation for employees through reducing boredom and monotony thru various obligations, enhancing employee talent development and flexibility, and reducing turnover prices by way of offering a more hard and stimulating work environment. It may additionally result in expanded performance and productivity by means of allowing employees to use their abilities and talents in a more various way. Moreover, task growth can enhance verbal exchange and teamwork amongst personnel as they work together on a ramification of duties.
To know more about Efficiency visit: https://brainly.com/question/30280642
#SPJ4
Which of these is a reason why a company may want to recruit internally? A Better chance of fresh ideas o B. Broader experience within the industry c. Familiarity with the company mission D. Saving money on salaries
Answer:
C. Familiarity with the company mission.
Explanation:
As a corporate director, I tend to seek talent within our organization for this very reason. Long term team members whom plan on growing with our organization are, at times, best suited for roles above their current level due to their loyalty and familiarity with the company mission. Promoting within gives great culture to a company and adds to overall moral.
What is a good practice before taking out a student loan?
A. Calculate the simple interest on the principal of the loan.
OB. Calculate the annual balloon payment to make sure you will be
able to afford it.
C. Calculate the total amount of compounded interest to see if you
are getting a good deal.
O D. Calculate the monthly payment to make sure you will be able to
afford it.
A typical good practice before taking out a student loan are:
calculate the annual balloon payment to make sure you will be able to afford it.calculate the monthly payment to make sure you will be able to afford it.What is a student loan?This is a kind of financial aid in form of money borrowed from the government or a private lender in order to pay for college.
The loan given to the student is expected to be paid back later with the interest that builds up over time and such money gotten are usually used for tuition, room and board, books or other fees.
Hence, the typical good practice before taking out a student loan are calculate the annual balloon payment to make sure you will be able to afford it and the monthly payment to make sure you will be able to afford it.
Therefore, the Option B & D is correct.
Read more about student loan
brainly.com/question/17269515
#SPJ1
Answer: Calculate the monthly payment to make sure you will be able to afford it
ski incorporated owns 30 percent of snow incorporated, both of which are domestic c corporations. snow pays ski a dividend of $20,000 in 2022. what is the amount of ski's dividend's received deduction, assuming the taxable income limitation does not apply?
This point is also known as the point of minimum efficient scale.
What is efficient scale?Efficient scale is the concept of achieving output levels of production at the lowest cost possible. It involves using the optimal combination of resources and materials to maximize production efficiency. This includes the amount of labor, the number of machines, and the type of materials used. By achieving efficient scale, companies can reduce costs and increase profits, while still providing consumers with the products they need. Additionally, efficient scale can lead to greater sustainability in both production and consumption, as it reduces waste and energy consumption.
At this point, the firm will be producing the lowest possible cost per unit of output, as the marginal cost of production is equal to the average total cost. This will maximize the firm's profits in the short-run.
To learn more about efficient scale
https://brainly.com/question/13843450
#SPJ4
Which part of the financial system is used to transfer risk to those who are best equipped to bear it? 3 Multiple Choice IES obed financial instruments [eBook financial institutions Punt ferences regulatory agencies central banks
The part of the financial system that is used to transfer risk to those who are best equipped to bear it is financial instruments. Financial instruments are contracts between two parties that specify the terms and conditions for the transfer of financial assets or liabilities.
These instruments include stocks, bonds, options, futures, and other securities. By transferring risk through these instruments, the financial system is able to allocate risk to those who are best equipped to handle it, such as professional investors or financial institutions. This allows for a more efficient and stable financial system.
Know more about "financial":-
https://brainly.com/question/27961174
#SPJ11
Which of the following recruitment sources is recommended when a company wants to target minorities?
Media advertising is recruitment sοurces is recοmmended when a cοmpany wants tο target minοrities.
Optiοn A is cοrrect.
What is advertising media?The term "advertising media" encοmpasses all fοrms οf media, including the internet, televisiοn, radiο, magazines, newspapers, and billbοards. By highlighting the advantages οf a prοduct οr service, it can be used tο cοnvince peοple tο buy it.
Advertising is a pοtent tοοl that can assist yοu in acquiring new custοmers, educating them abοut yοur prοducts, and establishing trust with existing οnes. The majοrity οf businesses assist themselves in prοduct οr service prοmοtiοn by emplοying sοme fοrm οf advertising.
Thrοugh visual, verbal, οr written messages, advertising is the prοcess οf infοrming and persuading a large audience tο purchase a prοduct οr service. A paid fοrm οf nοn-persοnal presentatiοn and prοmοtiοn οf ideas, gοοds, οr services is knοwn as advertising.
Learn more about media advertising:
brainly.com/question/30159142
#SPJ1
Complete Question:
Which of the following recruitment sources is recommended when a company wants to target minorities?
A. media advertising
B. sales promotion
C. Networking
All types of work are covered by a minimum wage?
Which of the following is true of an unsecured loan?
A. They are exclusively for cars, houses, and other large purchases
B. Collateral could be collected by the lender if the debt is not paid
C. They never have any interest added onto them
D. Items of value that the borrowers owns are not at risk of repossession
Answer:
B
Explanation:
The statement "The value of an item where the borrowers owned but they are not at the repossession risk" is to be true.
The unsecured loan is the type of loan in which there is no need for any type of collateral property.
The lender does not takes the assets of the borrower as the security but it gives the approval of an unsecured loan depends upon the creditworthiness of the borrower.
Examples are:
Personal loans.Students loans.Credit cards.The following information related to unsecured loans is
It does not for cars, houses, or any other large purchasesIn this, the collateral does not involve.It contains high interest.Therefore we can conclude that, option d is correct.
Learn more about the unsecured loan here: brainly.com/question/8347317
To buy a product, customers in a market must first
To buy a product, customers must first have the need for the product.
Customers cannot just simply buy anything or everything when it comes to products. People love shopping but money is a very useful and powerful resource and customers understand it well, so they don't want to spend it on useless things.
Firstly, there should be a need or a desire to buy a particular product. After that the customer decides his or her budget or the money he would like to spend on that product. If it crosses his or her budget, then the customer may not able to buy the product.
Lastly, there should be willingness to buy the product. Nowadays, we get impressed by big brands, malls and stores giving us immense discounts for even our daily needs. That is how knowingly or unknowingly, we tend to shop more.
To know more about Customers here
https://brainly.com/question/14530604
#SPJ1
Which skills are most likely to start at birth and develop as a person matures?
hard skills
work skills
people skills
soft skills
Which skills are most probable to start at delivery and broaden as a person matures? people's Skills are due to the fact you're born knowing how to interact with human beings and your skills most effectively get better as you grow up.
Skills are the learned potential to perform a motion with determined effects with accurate execution often inside a given quantity of time, power, or each. abilities can often be divided into domain-well-known and area-specific abilities.
Skills importance: They can be gentle capabilities, inclusive of problem-fixing abilities, powerful communique, or time control, or hard competencies, like pace typing, and the use of Powerpoint or Excel. sense unfastened to encompass any widely wide-spread abilities even if they may be no longer particularly required or cited within the activity description.
A critical skill is an important developed potential or capacity obtained via planned, systematic, and sustained efforts to easily and adaptively carry out complicated activities or activity functions regarding ideas, matters, and/or human beings. non-public talents are acknowledged as soft capabilities which are not clean to educate (despite the fact that no longer impossible). they're additionally referred to as interpersonal or even 'human beings' capabilities. Examples encompass dependability, adaptability, motivation, trouble-fixing, and analytical competencies.
Learn more about skill here:
https://brainly.com/question/1233807
#SPJ4
People skills are most likely to start at birth and develop as a person matures.
Childhood social and personality improvement emerges via the interplay of social impacts, biological maturation, and the kid’s representations of the social world and the self. This interaction is illustrated in a discussion of the impact of great relationships, the improvement of social know-how, the increase of personality, and the improvement of social and emotional competence in youth.
This interaction may be discovered within the development of the earliest relationships among babies and their mother and father in the first yr. sincerely all toddlers residing in everyday circumstances increase strong emotional attachments to individuals who take care of them. Psychologists agree with that the improvement of those attachments is as biologically natural as studying to walk and not in reality a byproduct of the mother and father’ provision of food or warmth. alternatively, attachments have developed in human beings because they sell youngsters’s motivation to live close to folks who care for them.
Learn more about Skills here:-
https://brainly.com/question/25645043
#SPJ1
I need help to determine my grade
Which of the following is a characteristic of a checking account?
1 Minimum money amount required to invest
2 Easy access to funds through a debit card
3 Fee charged if money is removed early
4 High rate of return on deposits
The characteristic of a checking account from the given options is: Easy access to funds through a debit card.
What features do checking savings accounts have?With a checking account, you can pay your bills, move funds to savings, get cash from ATMs, and use your debit card to make purchases. A crucial aspect of your personal money management is your bank account.
Which of the following describes a checking account's characteristics?Checking accounts offer simple methods for making deposits and withdrawals. In order to ensure that client and bank data always match, checking accounts are processed instantly. Checking accounts have fewer checks available but have greater interest rates. Checking accounts offer simple methods for making deposits and withdrawals.
To know more about debit card visit:-
https://brainly.com/question/1169716
#SPJ1
A student loan with a simple annual interest rate of 3% is to be repaid in 5 years. The total interest paid on a student loan is calculated to be $500. How much was originally borrowed?
A student loan with a simple annual interest rate of 3% is to be repaid in 5 years.
The total interest paid on the student loan is calculated to be $500.
We are to determine the original amount borrowed.
Let x be the original amount borrowed.
Then the interest paid annually is 0.03x, and the interest paid over 5 years is 0.03x * 5 = 0.15x.
According to the problem, the total interest paid is $500, so we have 0.15x = 500.
Solving for x, we get x = $3,333.33 (rounded to the nearest cent).
Thus, originally, the borrower borrowed $3,333.33.
To know more about simple annual interest visit :
https://brainly.com/question/19050089
#SPJ11