All categories

1 year ago

you want to buy a new car, but you can make an initial payment of only $2,400 and can afford monthly payments of at most $500.

Business

1 answer:

san4es73 [151]1 year ago

5 0

Maximum price we can pay for the car if the purchase is financed over 48 months = $21,386.98

<h3>If the APR on auto loans is 12% and you finance the purchase over 48 months, what is the maximum price you can pay for the car?</h3>

Generally, the equation for PV is mathematically given as

$\mathrm{PV}=\quad \mathrm{C} * \frac{1-\left[1 /(1+r)^{\wedge} \mathrm{n}\right]}{\mathrm{r}}$

C= Monthly Amount = 500

r= Interest Rate Per Period =12 %=0.12 / 12=0.001

n= Number of Periods =48 Months =48 Periods

Therefore

$= 500^* \frac{1-\left[1 /(1+0.01)^{\wedge} 48\right]}{0.01}$

$\begin{aligned}&=\$ 500^* \frac{1-\left[1 /(1.01)^{\wedge} 48\right]}{0.01} \\\\&=\$ 500^* \frac{1-[1 / 1.612226078]}{0.01} \\\\&=\$ 500 * \frac{1-0.620260405}{0.01}\end{aligned}$

In conclusion,

$= 500^* \frac{0.379739595}{0.01}\\\\=\$ 500^*37.9739595\\\\=\$ 18,986.98$$

Maximum price we can afford:

= Initial Payment + Present value of monthly payments

=$ 2,400+$ 18,986.98

=$ 21,386.98

You might be interested in

A reduction in the level of unemployment would have which effect with respect to the nation's production possibilities curve?

GREYUIT [131]

Answer:

B. It would not shift the curve; it would be represented by moving from a point inside the curve toward the curve.

Explanation:

Here the falling in unemployment represents that there is a movement with respect to the resources that are fully employed.

In this the unemployment means that it could be occured inner side of the PPF but if there is an increase, so the point of the production would be moved inner of the PPF to the PPF

Therefore the option B is correct

6 0

3 years ago

nvestment from abroad Select one: a. is a way for poor countries to learn the state-of-the-art technologies developed and used i

spin [16.1K]

The correct option is (d); All of the above are correct.

<h3>What is meant by investment from abroad?</h3>

A foreign direct investment (FDI) occurs when a business or investor from outside the country buys a stake in the company.

The phrase typically refers to a commercial decision to buy a sizable portion of a foreign company or to buy it altogether in order to expand its operations to a new area.

Role of the foreign investment for a country are-

FDI enables the transfer of technology that is not possible through financial investments or trade in products and services, notably in the form of new types of capital inputs.
The domestic input market can become more competitive with FDI as well.
In contrast to heavily regulated economies, open economies provide a qualified workforce and high growth prospects for investors.
There is a long-term commitment involved because there are no short-term capital gains goals.
FDI increases the manufacturing and service sectors, which leads to job growth and lower unemployment rates in the nation.
Increased employment increases earnings and gives the populace greater purchasing power, which strengthens a nation's overall economy.

To know more about the primary purpose of foreign direct investment, here

brainly.com/question/14525125

#SPJ4

I understand the question you are looking for-

Investment from abroad Select one: a. is a way for poor countries to learn the state-of-the-art technologies developed and used in richer countries. b. is viewed by economists as a way to increase growth. c. often requires removing restrictions that governments have imposed on foreign ownership of domestic capital. d. All of the above are correct.

5 0

2 years ago

The satisfaction received from using one more unit of a good or service is called

Hitman42 [59]

The satisfaction received from using one more unit of a good or service is called "marginal benefit ". Marginal benefit alludes to what individuals will surrender keeping in mind the end goal to get one more unit of a goods or services, while marginal cost alludes to the estimation of what is surrendered so as to deliver that extra unit. Extra units of a good ought to be created as long as minimal advantage is more than marginal cost.

6 0

3 years ago

Wyman Corporation uses a process costing system. The company manufactured certain goods at a cost of $800 and sold them on credi

Shtirlitz [24]

Answer:

Accounts receivable (Dr.) $1,075

Sales revenue (Cr.) $1,075

Cost of goods sold (Dr.) 800

Finished goods (Cr.) 800

where

Dr. = Debit

Cr. = Credit

Explanation:

The inventory account of a manufacturing firm has three sub-accounts: Raw materials, Work-in-process, and Finished goods. The goods purchased by the company were sold without any work done. It means that they were purchased in finished form, so, the company will record these goods in its finished goods inventory. When goods are sold, we have to record sales and receivable. AND on the same time, under perpetual inventory system, the cost of goods that are sold and inventory account are also adjusted to reflect the changes.

7 0

4 years ago

Read 2 more answers

The financial statements of Carrier Office Furniture Company include the following items: 2019 2018 Cash $42,500 $42,000 Sh

ad-work [718]

Answer:

$65,500

Explanation:

Data provided in the question:

2019 2018

Cash $42,500 $42,000

Short-term Investments 28,000 19,000

Net Accounts Receivable 102,000 98,000

Merchandise Inventory 166,000 148,000

Total Assets 527,000 547,000

Total Current Liabilities 273,000 285,000

Long-term Note Payable 64,000 60,000

Now,

Working capital = Current assets - Current liabilities

Also,

Current assets (i.e for the year 2019 )

= Cash + Short-term Investments + Net Accounts Receivable + Merchandise Inventory

= $42,500 + $28,000 + $102,000 + $166,000

= $338,500

and,

Current liabilities = $273,000

Therefore,

Working capital for 2019 = $338,500 - $273,000

= $65,500

3 0

3 years ago