1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Brrunno [24]
1 year ago
6

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:
NeTakaya1 year 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
Describe the elements that must be present for the courts to rule that a contract is unconscionable?
Evgesh-ka [11]

The elements that would have to be in place for a contract to be unconscionable would be that

  • They were under pressure
  • They were misled
  • They did not have the right information

<h3>What is meant by a contract?</h3>

This is the term that is used to refer to the fact that two people or more have agreed to do business with themselves.

In order to be a contract, one person would have to create a bargain and the other would be the one that would agree to the terms.

It is unconscionable at the time when the contract is done and the person or one of the parties is found not to have been able to make the contract agreement at their right frame of mind. In this case, the law has the power to protect this party.

Hence they would have to rule in his favor. Therefore to be unconscionable, a contract would have to have been misled, have been made under duress and without the adequate information.

Read more on contracts here:

brainly.com/question/5746834

#SPJ1

7 0
1 year ago
21. A noncancelable lease contains an option to purchase a leased asset at a price that is sufficiently lower than the asset's e
Tanzania [10]

Answer: A. Sales-type lease

Explanation:

A Sales type lease is one where the present value of all the lease payments of the Asset being leased is more than the cost/ carrying amount of the Asset.

The present value of the lease Payments is the Fair Value of the asset and as seen from the question, the fair value of the asset is more than the cost of the Asset. The lease will therefore be accounted for as a Sales type lease by the lessor.

It is worthy of note that this entry affects only the lessor.

7 0
3 years ago
Which of the following is an example of a hard skill?Working well as part of a team Knowing how to prepare financial statements
Aleksandr [31]

Answer:

B. Knowing how to prepare financial statements

Explanation:

Hard skills are teachable and measurable abilities in an office writing, reading, or the ability to use computer programs are hard skills

6 0
3 years ago
The Jackson–Timberlake Wardrobe Co. just paid a dividend of $1.60 per share on its stock. The dividends are expected to grow at
Verizon [17]

Answer:

(1)$42.4 (2)$50.50 (3)$85.32

Explanation:

Solution

Given that:

(1) The current stock price is computed below:

Stock price, P0 = D1÷(r-g)

Where

D₁ = the next dividend expected

r = the return required

g = he growth rate

Thus

= $1.60×(1+6%)/(10%-6%)

$42.4

(2) The formula for the stock price in three years  is given below:

Stock price, P3= D4÷(r-g)

Here

D₁ = the next dividend expected

r = the return required

g = he growth rate

= $1.60×[(1+6%)^4]/(10%-6%)

= $50.50

(3) Now we determine the price of the stock in 12 years

P12 = D13÷(r-g)

Here

D₁ = the next dividend expected

r = the return required

g = the growth rate

= $1.60×[(1+6%)^13]/(10%-6%)

= $85.32

6 0
2 years ago
The December 31, 2021, inventory of Tog Company, based on a physical count, was determined to be $467,000. Included in that coun
8090 [49]

Answer:

Tog Company

a. The correct December 31, 2021 balance of Inventory is

= $592,500.

b. The error increased the cost of goods sold, thereby reducing the net income and the retained earnings.

c. Journal Entries to correct errors:

Debit 2021 Inventory $67,000

Credit 2022 Inventory $67,000

To correct the error.

December 31, 2021

Debit Purchase $97,000

Credit Accounts Payable $97,000

To record the purchase of merchandise, shipped FOB shipping point on December 28, 2021.

Explanation:

a) Data and Calculations:

Physical count Inventory =             $467,000

FOB shipping point 2021 =                28,500

December 28 FOB shipping point = 97,000

December 31, 2021 balance =     $592,500

The error would increase the cost of goods sold, thereby reducing the net income and the retained earnings.

Journal Entries to correct errors:

December 31, 2021

a. 2021 Inventory $67,000  2022 Inventory $67,000.  The records should be for 2021 and not 2022.

b. This only affects the physical count and not the records.

c. Purchase $97,000  Accounts Payable $97,000. Both the physical count and the records were omitted.

4 0
3 years ago
Other questions:
  • Can these two countries gain from trading oil and fish​ oil?
    10·1 answer
  • In 2009 and 2010 Toyota had to recall millions of automobiles due to uncontrollable acceleration. This recall forced upper-level
    7·1 answer
  • Bryon operates a consulting business and he usually works alone. However, during the summer Bryon will sometimes hire undergradu
    13·1 answer
  • If there is a fall in the interest rate, ______.
    11·2 answers
  • For each of the following parts of the definition of auditing, state which part of the precedingnarrative fits the definition:a.
    6·1 answer
  • TravelEasy Inc. has issued 30-year semiannual coupon bonds with a face value of $1,000. If the annual coupon rate is 14% and the
    12·1 answer
  • Which problem is more likely to affect a partnership than a corporation?
    12·2 answers
  • Suppose that for each one-percentage-point increase in the interest rate, the level of investment spending declines by $0.5 bill
    5·1 answer
  • Suppose there is a duopoly of gas companies, Energy X and Energy Y. The following is the market demand for gas. There are no mar
    13·1 answer
  • The current average income for American households is approximately $56,000 per year. According to the reading
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!