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
Mariulka [41]
2 years ago
5

Below is a common problem in which the payments are not the same time period as the interest rate or the time period. In order t

o compute the payment correctly you need to adjust all variables so that they are the same period as the payment (note some calculators might do this automatically, you can set them so they do not do automatically make this correction). So if the problem has monthly payments, but the problem has an annual interest rate and time period over years, you would need to divide the interest by 12 and multiply the time period by 12. You would make similar adjustments if the payment was per day or semi annual. You are considering buying a new motorcycle. You are going to borrow $13,791. If you can negotiate a nominal annual interest rate of 6 percent (i.e. 6% equals the APR) and you wish to pay for the car over a 3-year period, what are your monthly car payments?
Business
1 answer:
klasskru [66]2 years ago
5 0

Answer:

Monthly installment = $419.54

Explanation:

<em>Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest. </em>

The monthly installment is computed as follows:

Monthly installment= Loan amount/annuity factor

Loan amount =13,791

<em>Annuity factor = (1 - (1+r)^(-n))/r </em>

r -monthly rate of interest, n- number of months

r- 6%/12 = 0.5% = 0.005, n = 3 × 12 = 36

Annuity factor = ( 1- (1+0.005)^(-36))/0.005

= 32.87101624

Monthly installment = Loan amount /annuity factor

= 13,791/13,791= 419.5489394

Monthly installment = $419.54

You might be interested in
Pharoah Company, a computer services company, entered into these transactions during May 2017, its first month of operations. St
Daniel [21]

sorryyyyyyyyyyyyyyyyyyyy

4 0
3 years ago
Imagine that Eveready has developed solar rechargeable batteries that cost only slightly more to produce than the rechargeable b
dusya [7]

Answer:

adshgddfxxxxxxsdccxasss

Explanation:

a

4 0
3 years ago
Which of the discrimination protected by EEOC
Gre4nikov [31]
Answer :
A. Stereotype (i think this is right)
4 0
3 years ago
an unmarried taxpayer, has wages of $45,000. He has a significant amount of income from dividends and interest and therefore exp
Olin [163]

Answer: $8500

Explanation:

Since the total amount of estimated tax liability for 2018 is $18000 and the tax withholding is $9500$, then the balance tax payable for 2018 will be:

= $18000 - $9500

= $8500

Therefore, the minimum amount of total estimated tax that Randy must pay in 2018 in order to avoid a penalty for underpayment of estimated taxes will be $8500

8 0
2 years ago
Which famous person was known as the original dollar ​
creativ13 [48]
George Washington: Washington has been called the "Father of His Country" for his manifold leadership in the formative days of the new nation.
4 0
3 years ago
Other questions:
  • Effect of junk status on unemployment
    15·1 answer
  • At January 1, 2016, Sheffield Corp. has beginning inventory of 3000 surfboards. Sheffield estimates it will sell 11000 units dur
    12·1 answer
  • What is a corporation?
    7·2 answers
  • 19. Who among the following is not covered under the Occupational Safety and Health Act of 1970?
    5·1 answer
  • Problem 4-6 (Algo) Income statement presentation; Discontinued operations; EPS [LO4-1, 4-3, 4-4, 4-5] Rembrandt Paint Company ha
    5·1 answer
  • The Carolina Christmas Tree Corporation grows and sells 500 Christmas trees. The average cost of production per tree is $50. Eac
    11·1 answer
  • ___________ is a collection of materials and products of value that a company purchases to either create or provide a product or
    9·1 answer
  • Loss is the value of the economic surplus that is forgone when a market is not allowed to adjust to its competitive equilibrium.
    11·1 answer
  • Why does customer service matter
    13·1 answer
  • total fixed costs for diamong enterprises are $700,000. Total costs, including both fixed and variable, are $920,000 if 140,000
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!