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3 years ago

You can afford a $200 per month car payment. You've found a 3 year loan at 4% interest. How big of a loan can you afford

1 answer:

4 0

Based on the payment you can afford, the interest rate, and the number of years, the loan you can afford is $6,774.15

<h3>What size of a loan can you afford?</h3>

First find the monthly interest rate:

= 4% /12

= 1/3%

Number of periods:

= 3 x 12

= 36 months

The loan you can afford can be found as:

= Payment x ( 1 - (1 + rate) ^ -number of periods) / rate

= 200 x (1 - (1 + 1/3%)⁻³⁶) / 1/3%
= $6,774.15

Find out more on loans at brainly.com/question/15088278.

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3 years ago

Springfield mogul Montgomery Burns, age 80, wants to retire at age 100 so he can steal candy from babies full time. Once Mr. Bur

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Answer:

Springfield mogul, Montgomery Burns

How large of an annual deposit must be made to fund Mr. Burns retirement plans:

= $94,644,751.67

Explanation:

a) Data and Calculations:

Age of Mr. Burns now = 80 years

Retirement age = 100 years

Annual withdrawal at the beginning of each year for 10 years = $500 million

Special offshore account pays interest = 18% annually

Investment for funding retirement:

Deposits = 20 equal end-of-the year deposits in the same special offshore account above.

b) Calculation of Future value of annual deposit after 20 years:

FV (Future Value) $13,877,572,093.01

PV (Present Value) $2,651,510,914.01

N (Number of Periods) 10.000

I/Y (Interest Rate) 18.000%

PMT (Periodic Payment) $500,000,000.00

Starting Investment $0.00

Total Principal $5,000,000,000.00

Total Interest $8,877,572,093.01

c) Calculation of Annual Deposit to reach the future value target of $13,833,567,810.87:

FV (Future Value) $13,877,567,810.87

PV (Present Value) $506,609,362.98

N (Number of Periods) 20.000

I/Y (Interest Rate) 18.000%

PMT (Periodic Payment) $94,644,751.67

Starting Investment $0.00

Total Principal $1,892,895,033.42

Total Interest $11,984,672,777.45

d) Mr. Burns will need to contribute $94,644,751.67 at the end of each period to reach the future value of $13,877,572,093.01. Both the future value of deposits of $13,877,567,810.87 and the annual periodic payment of $94,644,751.67 are determined using online financial calculator.

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3 years ago

Which company is most exposed to the ups and downs of the aircraft engine industry? a) General Electric b) MTU Aero Engines c) U

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I think it’s b but I can’t garauntee I’m sorry

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3 years ago

Kocher Steel typically achieves one of three production levels in any given year: 8 million pounds of steel, 10 million pounds o

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Answer:

Fixed cost

Explanation:

Variable costs are costs that change with change in the quantity of the goods or services produced by the business. For example the cost of raw materials.

Fixed costs are costs that do not change with change in the quantity of the goods or services produced by the business. For example interest payments.

In the given question, payment of $10 per pound has to be made no matter what the production level for the year, so this is an example of <u>fixed cost</u>

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3 years ago

Eric enjoys making pizza. When he makes pizza for his friends, sometimes Eric cares about how the pieces are distributed, and so

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Answer:

equity:

-He cuts the pie into eight equal slices.

-He cuts the pie into many slices so that everyone gets a piece.

Efficiency:

-He lets one person eat the whole pie.

-He makes sure that the whole pie is eaten.

Explanation:

Equity deals with distribution i.e to ensure things are equally distributed

While

Efficiency is trying to make sure things are completely used up i.e act of preventing waste

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