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lord [1]
3 years ago
11

You want to borrow $115,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $2,250, but n

o more. Assuming monthly compounding, what is the highest rate you can afford on a 60-month APR loan
Business
1 answer:
Alex787 [66]3 years ago
7 0

Answer:

APR 6.498%

Explanation:

We solve for rate using excel goal seek

we write on A1:

=PV(A2;60;2,250)

Now, on A2 wirite any number as a placeholder

Last we use goal seak tool to make the A1 value of 115,000 changin A2 (which is the rate)

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 2,250.00

time 60

rate 0.00541501

2250 \times \frac{1-(1+0.00541501038042548)^{-60} }{0.00541501038042548} = PV\\

PV $115,000.0007

now, this rate will be monthly so we multiply by 12

0.00541501 x 12 = 0,06498012‬ = 6.498%

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Which of the following scenarios illustrates cost-push inflation?(1 point)
Crazy boy [7]

Answer:

1. Inflation is best described as _____.

- an upward, general trend of prices in the economy

2. Which of the following scenarios illustrates cost-push inflation?

- An increase in the price of raw materials decreases aggregate supply, pushing prices higher throughout the economy.

3. The Consumer Price Index in 2018 was 251. In 2019, the CPI rose to 257. Calculate the inflation rate from 2018 to 2019. Round your answer to the nearest tenth of a percent.

- 2.4%

4. The Consumer Price Index of any given year provides _____.

- the relative price of a basket of consumer goods as compared to base year prices

5. The rate of inflation in a hypothetical economy is projected to be 1.5% in the coming quarter. Given this information, the Federal Reserve is likely to _____.

- make efforts to raise the inflation rate because 1.5% is below the desired rate of inflation

Explanation:

Mark me braliest

These are 100% correct

3 0
3 years ago
Gerald's Tire Store sets itself apart from competitors by the extra attention it pays to providing fast, courteous service in a
Elodia [21]

Answer:

Letter c is correct.<u> Macro, or overarching, strategy.</u>

Explanation:

Gerald's Tire Store created a macro or overarching strategy because the company's focus is mainly on the customer.

The focus on the excellence of the services offered to the customer, translate an effective strategy for the positioning of a company in the market, offering a differentiated and quality service provides increased brand value, strengthens the relationship with customers, increases their perception and customer satisfaction. products and services offered.

Creating customer relationships means creating value is a challenge for organizations and requires extra effort from marketers. It is necessary to segment the market to find where your target audience is, what your needs and desires are, then develop and implement a strategic marketing plan to create value, strengthen the brand and ensure a competitive advantage in the market.

7 0
3 years ago
Suppose you borrow​ $2,000 for one year and at the end of the year you repay the​ $2,000 plus​ $110 of interest. If the expected
UkoKoshka [18]

Answer:

b. 3.3%

Explanation:

The nominal interest rate is 5.5%, (110/2000*100), and the inflation was 2.2%

The shortest way to calculate real interest rate is to subtract the inflation from the nominal interest rate, in this case

5.5% - 2.%2 = 3.3%

6 0
4 years ago
Legacy issues $660,000 of 5.5%, four-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31
dusya [7]

Answer:

Legacy

The total bond interest expense to be recognized over the bond's life is:

= $189,172.82

Explanation:

a) Data and Calculations:

Face value of 5.5% bonds issued = $660,000

Proceeds from the bonds issue =       648,412

Bonds discounts =                                $11,588

Interest payment = semiannually at 2.75% (5.5%/2)

Market interest rate = 6%

Effective semiannual interest rate = 3% (6%/2)

N (# of periods)  8

I/Y (Interest per year)  3

PV (Present Value)  648412

PMT (Periodic Payment)  18150

Results

FV = $982,784.82

Sum of all periodic payments = $145,200.00

Total Interest = $189,172.82

6 0
3 years ago
A cost center is a unit of a business that incurs costs without directly generating revenues. All of the following are considere
Maksim231197 [3]

Answer:

e

Explanation:

except e other departments are incurring costs but not generating revenue

8 0
3 years ago
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