Jacinda Herschel wants to buy a car and determines she can afford to pay $365.15 a month for a 4-year loan. The rate on her loan
1 answer:
Jacinda Herschel wants to buy a car this amount $15965.57 can borrow.
What is loan?
An amount of money borrowed by a person or business from a business, financial institution, or government is known as a loan.
Jacinda Herschel monthly saving (M) = $365.15
Term = 4 years loan
Interest rate = 4.65% or 0.0465
Number of months (n) = 4 years x 12
Calculation of number of month is = 48
Monthly interest rate (r) = 0.0465/12 = 0.003875
Loan amount formula as =
=
= $365.15/0.003875 x [1 – 0.83057208775233]
= $365.15/0.003875 (0.16942791224767)
= $15965.57
As a result, $15965.57 is correct.
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Answer:
$339,600
Explanation:
The internal rate of return is the relationship between the price of the equipment and their yearly cash flow. the IRR makes the net present value equal to zero thus, it makes the present value of the yearly cashflow equal to the cost:
C 60,000.00
time 12
rate 0.14
PV $339,617.5275
<em><u>From the given option:</u></em>
$ 339,600 is the closest option.
Answer:
$2,385,086
Explanation:
To answer this question, we need to use the present value of an ordinary annuity formula:
Where:
- A = Value of the annuity
- i = interest rate
- n = number of compounding periods
Because the interest rate is annual, it is convenient to convert it to a monthly rate.
4.5% annual rate = 0.37% monthly rate.
The number of compounding periods will be = 12 months x 30 years
= 360 months
Now, we simply plug the amounts into the formula:
You will need to have saved $2,385,086 if you plan to retire under the aforementioned circumstances.