A price floor is found ___________ the equilibrium point.

George bought a car for $26,500. he made no down-payment and financed the entire amount on a 5-year term with a monthly payment

pentagon [3]

Given:
Principal, P = 26500
term=5 years
Monthly payment, A = 695

Question: Find interest rate

Solution:
Unless there is a table available, there is no explicit formula to calculate interest. However, the interest rate can be solved for using the formula to calculate the monthly payment, as follows.

$A=\frac{P(i*(1+i)^{n})}{(1+i)^{n}-1}$
Substituting
P=26500
i=monthly interest rate to be found
A=monthly payment=695
n=5*12=60 months
$A=\frac{26500(i*(1+i)^{60})}{(1+i)^{60}-1}$
Rearrange to give successive estimates of i by
I(i)=(695/26500)*((1+i)^60-1)/(1+i)^60
Try initial estimate of i=0.02 (2% per month)
I(0.02)=0.0182
I(0.0182)=0.01736
I(0.01736)=0.01689
....
Eventually we get the value to stabilize at i=0.016265, or
Monthly interest = 1.6265% (to four decimal places)

4 0

2 years ago

Why can deadweight loss occur when a price is below the equilibrium even when some consumers benefit from it?

soldi70 [24.7K]

When a shortage occurs, some consumers are fortunate enough to benefit from a lower price if they purchase the good or service before the price increase occurs.

7 0

3 years ago

the difference between what it costs to make and sell a product and what a customer pays for is referred to as

Bas_tet [7]

Answer:

The difference between what it costs to make andsell a product and what a customer pays for is referred to as

3 0

2 years ago

True or False: A tax cut that will last for only one year will have a greater impact on aggregate demand than a tax cut that is

gavmur [86]

A tax cut that will last for only a year will not have a huge effect on the aggregate demand as the aggregate demand increases only when the tax cut is permanent.

The given statement is false.

A tax is a liability imposed on the taxpayer to pay a specified sum to the government based on the income they have earned in the previous year.

When the cutting of taxes becomes permanent in the country, then the citizens can start to acquire more which will increase the spending. The families will expect that the tax cuts are for the longer term which now induces them to buy and spend more and also act as an addition to their incomes. This whole impact would eventually lead to rising in aggregate demand.

Therefore, the demand increases when the tax cuts are permanent rather than when tax cuts are for only one year.

Learn more about the tax cut policies in the related link:

brainly.com/question/13924294

#SPJ1

5 0

1 year ago

Procter & Gamble determined that its Thermacare Heat Wrap was underperforming and lacked a desired level of growth potential

Kamila [148]

Answer:

Decline

Explanation:

there are four stages of product life cycle

1. introduction

2. growth

3. maturity

4. decline

In decline stage growth declines as a result of decrease in demand. The best decision at this stage is to divest the asset. Since Thermacare heat wrap was under performing it must be in decline stage and divestment of the brand was done by Procter and Gamble

3 0

2 years ago