Answer:
monthly payment = (total amount owing+interest to be paid) / 12 months
Explanation:
Monthly repayments include the total amount owing on the credit card, plus the interest to be paid. This amount should then be divided into 12 monthly payments in order to get one constant amount to be paid each month for the 12 month period. We will assume there are no other factors affecting the amount, other than interest.
The formula to calculate the monthly repayments in the credit card is as follows:
(total amount owing + interest) / 12 months
For example, say the amount owing was $100 and the total interest to be paid was $20; the monthly repayment would be calculated as ($100+ $20) / 12 months. This would mean the credit card holder pays $120/12 = $10 per month in order to repay the debt.
Question:
Graded assignment(towards 15% Hw grade) Saved Help Save& Exit Submit Check my work Your landscaping company can lease a truck for $7,800 a year (paid at year-end) for 6 years. It can instead buy the truck for $38,000. The truck will be valueless after 6 years. The interest rate your company can earn on its funds is 7%. 10 points
What is the present value of the cost of leasing?
Answer:
Cost of lease = $37,179.01
Explanation:
Leasing is a finance arrangement where one party (the lessor) transfers the right to use an asset to another party (the leasse) in exchange for a rent.
The cost of a lease to the leasee is the present value of the future lease payment discounted at the cost of capital.
So using the present value of annuity formula, we can work out the cost of the lease arrangement as follow:
PV =A× (1- 1+r)^(-n)/r
PV- Present Value
r- interest rate
n- number of years
A- annual lease payment
PV -
A-7,800
r-7%
n-6
PV = 7,800× (1- (1.07)^(-6)/0.07 = 37,179.01
Present Value = $37,179.01
Cost of lease = $37,179.01
The formula to find the area of a rectangle is
Area=length*width
( area equals length times width)
So you substitute the values in the problem into the equation above.
5 5/8=1 1/2* w
Then you can solve the equation by dividing the 5 5/8 by the 1 1/2, cancelling out 1 1/2 and leaving the w by itself on one half of the equal sign
You are left with
3 3/4 = w
The width of the patio in yards is 3 3/4.
(Just ask if you have more questions or I didn't explain something clearly)
Answer:
The correct answer is 20 units.
Explanation:
According to the scenario, the given data are as follows:
Total cost = $10,000
Total fixed cost = $2,000
Average variable cost = $400
So, Total variable cost = Total cost - Total fixed cost
= $10,000 - $2,000 = $8,000
So, we can calculate the total number of widgets producing by using following formula:
Units producing = Total variable cost ÷ average variable cost
= $8,000 ÷ $400
= 20 units
