All categories

8 months ago

you wish to buy a $25,000 car. the dealer offers you a 4-year loan with a 9 percent apr. what are the monthly payments?

Business

1 answer:

NeTakaya8 months ago

4 0

In order to buy a car worth $25,000 a monthly payment of $622.12 is required.

Mortgages are one type of loan that frequently has a structure that calls for a stream of identical monthly payments. The lender can assess whether the customer's budget can support equal monthly payments by doing so.

Suppose the monthly payment is M.

With 9 percent APR, the effective monthly rate is 9%/12 = 0.75%.

There will be 12 x 4 years, or 48 monthly payments.

The face value of the loan must be equal to the present value of these monthly payments, or

${}\sum_{t=1}^{48}{\frac{M}{(1 + 0.75\%)^t}} = 25,000, {}$

which yields M = 622.12.

If you only paid interest, the monthly payment would be calculated as follows: principal * monthly interest rate (9% /12) = 25,000*0.75% = 187.5.

The results would be that after five years, you would still owe the whole amount of $25,000 and would have to pay $11,250 in interest.

Learn more about loans:

brainly.com/question/11794123

#SPJ4

You might be interested in

Critics of the North American Free Trade Agreement argued that opening our borders to free trade with Mexico would result in U.S

myrzilka [38]

Answer:

The criticism is true to a certain degree, and unjustified to another degree.

Explanation:

It is true in the sense that the U.S. has indeed lost a lot of manufacturing to Mexico, simply because Mexico has far lower labor costs, and U.S. manufacturers have decided to take advantage of that by taking their plants to Mexican states.

It is also true that Mexico has been running a trade surplus with the United States in recent years, mainly because of the large manufacturing sector that Mexico has been developing.

On the other hand, the criticism is unjustified because neither a trade deficit nor the moving of manufacturing to Mexico mean that the United States as a whole is in worst condition than before NAFTA. In fact, most economists agree that free trade is a good thing for the economy as a whole, and that most people benefit from the lower costs and specialization that trade brings about.

The problem lies then, in the people who lose their jobs: formerly unionized manufacturing workers from the Rust Belt, for example. These people need to be helped with government assitance, both in terms of welfare, and training, so that they can find new jobs and make ends meet in the meanwhile.

5 0

2 years ago

Prepare a journal entry for the purchase of office equipment on February 19 for $31,700, paying $7,600 cash and the remainder on

Pani-rosa [81]

Answer:

Dr Office equipment 31,700

Cr cash 7,600

Cr Accounts payable 24,100

Explanation:

Preparation of the journal entry for the purchase of office equipment on February 19

Based on the information given the if asset was purchased on February 19 for the amount of $31,700 in which the company paid the amount of $7,600 cash and the remainder on account which means that the journal entry will be:

February 19

Dr Office equipment 31,700

Cr cash 7,600

Cr Accounts payable 24,100

(31,700-7,600)

8 0

3 years ago

1. What is the lowest balance during this period?

RSB [31]

Actually for this type of question simply take a picture
Yah and the and is use a calculater

4 0

3 years ago

I need help in this it’s personal finance

Lilit [14]

Answer:

it may personal finance

Explanation:

because it's is include personal site

7 0

2 years ago

Each of the following statements may (or may not) describe one of these technical terms. In the space provided below each statem

densk [106]

Answer: Please find below the answer. You omitted the terms to be used.

Explanation: Using the accounting terms, Revenue expenditure. straight line policy, Goodwill,capital expenditure, half year convention, accelerated depreciation, research and development, MACRS,

filling in the terms appropriately, or None, if statement does not describe any term, we have

a)An Expenditure that will benefit only the current accounting period - Revenue expenditure

b) The accelerated depreciation system used in federal income tax returns for depreciable assets purchased after 1986 - MACRS

c) A policy that fractional period depreciation on assets acquired or sold during the period should be computed to the nearest month - Straight Line policy

d) An intangible asset representing the present value of future earnings in excess of normal return on net identifiable asset - Goodwill

e) Expenditures that could lead to introduction of new products, but which according to FASB, should be viewed as an expense when incurred - Research and Development

f-)Depreciation method that takes less depreciation in early years of an asset's useful life, and more depreciation in later years - NONE

g) An account showing that portion of the cost of a plant asset that has been written off to date as depreciation expense - Accumulated Depreciation.

7 0

2 years ago