Answer:
$17,167
Explanation:
<em>The first step is to calculate amount of cash that would be charged</em>
<em>For 30 months, pay $520 per month for 30 months and an additional $10,000 at the end of 30 months.</em>
Present value is = 2,221
<em>Then</em>
<em>The present value of the payment options is =</em>
<em>($520 * PVA (24% 12,30) + $10,000 PV ( 24% 12,30))</em>
<em>$520 * 22.396 + $10,000 * 0.5521</em>
<em>$11646 + $ 5521</em>
<em>$17,167</em>
<em>Therefore the amount of cash the car dealer would charge is $17,167</em>
Answer:
3.73 years or 4 years approx
Explanation:
The computation of the number of years taken for money invested for double is shown below:
As we know that
Amount = Principal × (1 + interest rate ÷ time period)^interest rate × time period
where,
We assume the principal be P
And, the amount is 2P
And, the other values would remain the same
So,
2P = P (1 + 0.2044 ÷ time period)^ 1 × time period
2 = (1.2044)^ time period
Now take the log both sides
ln2 = ln (1.2044)^time period
ln2 - time period ln (1.2044)
So,
time period = ln(2) ÷ ln (1.2044)
= 3.73 years or 4 years approx
Answer:
D. The bank offers you a loan at 4% interest and a savings account that pays 5% interest.
Explanation:
<em>Arbitration</em> is a <em>financial strategy</em> that consists of the price difference between different markets on the same financial asset to obtain an economic benefit, usually without risk.
To perform arbitration, complementary operations (buy and sell) are carried out at the same time and wait for prices to adjust. The arbitration takes advantage of this divergence and obtains a risk-free gain. In other words, the arbitrajista is positioned short (sells) in the market with higher price and long (purchase) in the market with lower price. The benefit would come from the difference between the two markets.
The standard repayment plan is the basic plan for repaying student loans. You're automatically placed in this plan when you start repayment, unless you select a different option.
<span>A monopolist sells 6 units of a product per day at a unit price of $15. if it lowers price to $14, its total revenue increases by $22. this implies that its sales quantity increases by: 8 units.
To solve for the original sales amount: (6 units)($15) = $90
Next find the new unit amount: (8 units)($14) = $112
The difference between these two is a $22 sales increase which means to have the difference in sales be $22 there were 8 units sold instead of 6 units.
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