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kumpel [21]
3 years ago
14

Background information: Car purchase cost: $25,000 Sum of Fuel and Maintenance Cost at End of Year 1: $2,000 Incremental increas

e in Fuel and Maintenance Cost after Year 1: $250/year (i.e. Fuel and Maintenance Cost at End of Year 2 is $2,250, End of Year 3 is $2,500, and so on). (a). (1 pt.) Suppose that you can get a car loan at 6.9% annual, compounded monthly, for a term of 60 months. You put down $5,000 and you finance the remaining $20,000. What is the monthly payment ($/month)
Business
1 answer:
julia-pushkina [17]3 years ago
4 0

Answer:

$395.08

Explanation:

Given that

Annual loan = 6.9%

Compounded months = 60

Remaining finance = $20,000

The computation of monthly rate is as shown below :-

Monthly payment =  Loan Amount ÷ Present value annuity factor of 0.575% at 60 months

= $20,000 ÷ 50.6225

= $395.08

Refer to the Present value annuity factor table.

The monthly rate

= 6.9% ÷ 12

= 0.575%

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3 years ago
A company has an unbiased forecast for its demand. what does that mean?
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Average of all forecast errors is 0 a company wants to use a regression analysis to forecasts the demand for the next quarter.
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3 years ago
g Your financial advisor offers you two different investment options. Plan A offers a $17,000 annual payment, in perpetuity. Pla
motikmotik

Answer:

4.76%

Explanation:

The requirement in this question is determining the discount rate which gives the same present value in both cases since discount rates discount future cash flows to present value terms.

PV of a pertuity=annual cash flow/discount rate

PV of a pertuity=$17,000/r

PV of ordinary annuity=annual cash flow*(1-(1+r)^-n/r

PV of ordinary annuity=$30,000*(1-(1+r)^-18/r

$17,000/r=$30,000*(1-(1+r)^-18/r

multiply boths side by r

17000=30,000*(1-(1+r)^-18

divide both sides by 30000

17000/30000=1-(1+r)^-18

0.566666667=1-(1+r)^-18

by rearraging the equation we have the below

(1+r)^-18=1-0.566666667

(1+r)^-18=0.433333333

divide indices on both sides by -18

1+r=(0.433333333)^(1/-18)

1+r=1.047554315

r=1.047554315-1

r=4.76%

5 0
3 years ago
How much would you need to deposit in an account now, such that in 5 years your account will have increased to $8,000, assuming
VladimirAG [237]

Answer:

$6268.21

Explanation:

Future value = $8000

Interest(r) = 5%

Period (n)= 5 years

How much need to deposit?

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= 8000 / (1.05)5

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Present Value / Amount need to deposi today = $6268.21 approx

4 0
2 years ago
Question in picture.
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I believe it’s 4 since you have to go to class and introduce yourself to the teachers so he/she will know you better and know how they can help you and when going to their office hours they can help you with anything that you are having trouble with.
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4 years ago
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