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Cloud [144]
4 years ago
11

You want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over 5 years (60 months), and th

e nominal interest rate will be 4% with interest paid monthly. What will be the monthly loan payment? What will be the loan's EAR? Do not round intermediate calculations. Round your answer for the monthly loan payment to the nearest cent and for EAR to two decimal places.
Business
1 answer:
Vikentia [17]4 years ago
8 0

Answer:

Monthly payment: 460.41 dollars

Effective rate:  4.07%

Explanation:

we will calculate the PTM of an annuity of 25,000 over 5 year at 4%

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

PV  $25,000.00

time 60

rate 0.003333333

25000 \div \frac{1-(1+0.003333)^{-60} }{0.003333} = C\\

C  $ 460.413

Now we need to know the effective rate, which is the same as 4% compounding monthly:

(1+0.04/12)^{60} = (1+ r_e)^{5}\\r_e = \sqrt[5]{(1+0.04/12)^{60}} - 1

effective  rate = 0.040741543 = 4.07%

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Answer: See explanation

Explanation:

1. Dr Deferred revenue 2,000

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Cr. Prepaid insurance 6,600

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Cr Interest payable 250

5 Dr Supplies expense 3,900

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N. B:

Rent revenue for December was calculated as:

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Insurance expense for the current year was calculated as:

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3 0
3 years ago
Which statement would not be a way for the government to reduce the national debt?
Anastasy [175]

Answer:

Increasing government spending in the form of infrastructure and  welfare

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Investment in infrastructures (such as military bases,. building new roads or parks) and government programs (such as expensive healthcare or government funded jobs) tend to take a large amount from the government budget. This will most likely resulted in the increase of national debt.

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4 years ago
In the seven step military problem solving process you have identified the problem. what is the next step?
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The next step is Gather information. The objective is to have high caliber, satisfactory choices made in battle and preparing circumstances. The Military Problem Solving Process enables pioneers to confront complex issues in circumstances where data may be restricted. 
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Same like this modification process goes through and developed into a brand new brand or product ad same and we know if any product didn't find a mistake again this product is indeed a new product so all the respective categories are called new products.

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2 years ago
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In the second ratio, the number of people is the denominator. It should be the numerator to match the first ratio.

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