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Strike441 [17]
2 years ago
14

Recently, Glenda Estes was interested in purchasing a Honda Acura. The salesperson indicated that the price of the car was eithe

r $27,600 cash or $6,900 at the end of each of 5 years. Compute the effective-interest rate to the nearest percent that Glenda would pay if she chooses to make the five annual payments.
Business
1 answer:
Karo-lina-s [1.5K]2 years ago
8 0

The rate of interest charged to Glenda would be 5.18% upon the payment of her car in five annual installments.

<h3>What is a rate of interest?</h3>

The percentage of interest charged over the principal amount of loan or advances for a particular period of time, is known as the rate of interest of such loan.

The computation of rate of interest using the formula and given information will be,

\rm Rate\ of\ Interest= \dfrac{Interest}{Principal\ x\ Time}\ x\ 100\\\\\rm Rate\ of\ Interest= \dfrac{7150}{138000}\ x\ 100\\\\\rm Rate\ of\ Interest= 5.18

Hence, the computation of the rate of interest is as aforementioned.

Learn more about rate of interest here:

brainly.com/question/13324776

#SPJ1

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Baird Bros. Construction is considering the purchase of a machine at a cost of $125,000. The machine is expected to generate cas
andre [41]

Answer:

$1,747

Explanation:

Given:

Generate Cash flows = $20,000 per year

Salvage value = $10,000

Interest = 10% = 0.10

Computation:

Net present value = PV of cash inflows - PV of cash outflow

= [($20,000 X 6.1446) + ($10,000 X 0.3855)] - $125,000

= [$122,892 + 3855] - $125,000

= $1,747

PV factor (for salvage value)

(1+r)^{-n}\\(1+0.10)^{-10}\\0.3855

Inflow PV factor = 6.1446

4 0
3 years ago
In the context of servqual, _____ is the knowledge and courtesy of service providers and their ability to convey trust and confi
krek1111 [17]
SERVQUAL is a multi-dimensional research model of measuring the scale of quality and the <span>consumer expectations and perceptions.</span><span>
In the context of servqual, assurance is the knowledge and courtesy of service providers and their ability to convey trust and confidence.</span>
3 0
3 years ago
Organizations are increasingly adjusting their processes and positioning their products as environment friendly and sustainable
astraxan [27]

Answer: social trends

                           

Explanation: In simple words, social trend refers to the  activity that is highly participated by the majority of individuals in a society. These trends  are part of the external environment of the business.

In the given case, the company is modifying their products as the customers nowadays are more aware and concerned about the environment. Thus, it is trend that majority of society has become Eco-friendly.

From the above we can conclude that the correct option is B.

8 0
4 years ago
Any information useful to decision makers should be provided in the financial statements, subject to the cost effectiveness cons
user100 [1]

Answer:

Fulldisclosure principle

Explanation:

The fulldisclosure principle states that any financial information that is relevant to the firm's stakeholders should be disclosed in the financial statements.

This principle is closely related with the materiality principle, which states that all relevant information should be recorded except for that information that is simply not relevant due to its intrisic characteristics (for example, a very small transaction in monetary value inside a very large company).

4 0
3 years ago
Ann Jones uses a dry-cleaning machine in her business, and it was partially destroyed by firE. At the time of the fire, the adju
VikaD [51]

Answer:

the casualty loss is $8,000

Explanation:

The computation of the casualty loss is given below:

Lower of

= Adjusted basis or decline in FMV

= $10,000 or ($18,000 - $10,000)

= $10,000 or $8,000

= $8,000

hence, the casualty loss is $8,000

The same would be considered and relevant

The other values would be ignored

4 0
3 years ago
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