Of the following sources, where might you expect to find biased information?

Douglas can afford 240$ a month for five years for a car loan. If the APR is 8.5%, how much can he afford to borrow to purchase

SVETLANKA909090 [29]

Answer:

Douglas can afford 21697.88 to borrow to purchase a car.

Explanation:

As the formula for calculating present value is given as:

PV = PMT * ( (1-(1+r)^-n) / r )

As Douglas can afford 240$ a month for five years for a car loan so

it means that payment = 240 $

As the APR is 8.5% which means after dividing by 12 the rate per month = 8.5%/12

Total number of Months = 5*12

Total number of Months = 60

Putting these values into the above formula, we get

PV = PMT * ( (1-(1+r)^-n) / r )

PV = 240 * ( (1-(1+8.5%/12)^-60) / (8.5%/12) )

PV = 11697.88

As the down payment = 10,000 so the total value of car

= 11697.88+10000

= 21697.88

Douglas can afford 21697.88 to borrow to purchase a car.

8 0

3 years ago

Your mother and father are retired and need income to live on. The local financial advisor offers to sell them a product that wi

klio [65]

Answer:

To evaluate the choice, we have to calculate the present value of future cash flows and compare it with the cost. We use the following formula

present value = C × [ $\frac{1 - (1 + i)^{-n} }{i}$ ]

where

C = yearly payments = 75000

i = interest rate = 8%

n = no. of years = 15

put the given values in above equation, we get

Present value = 75000 ×8.559478688

= 641,961

Since the present value of cash flow 641,961 is less than the cost 750,000, I would not recommend it.

If Interest rate = 5%, then:

Do the same procedure as above but take i=5%

Present value = 75000 × 10.37965804

= 778,474

Since the present value of future cash flows 778,474 is greater than the cost 750,000, I would recommend it.

3 0

3 years ago

New oil is reserves are discovered. What has increased in supply.

zalisa [80]

The correct answer is D. Land

Explanation:

In economics, land is one main factor of production and includes natural resources that can be used to make products, for example, wood can be used to made furniture or fruits can be used to produce juice, jam, and similar. Also, these resources are classified into renewable and nonrenewable depending on whether they are abundant and replenish in a short time. Oil is considered part of the land factor because this is a non-renewable resource that is used to produce goods such as fuels or plastic. Therefore, if new oil reserves are discovered there is an increase in land supply because more natural resources are available to produce goods.

4 0

2 years ago

Given the following information, calculate the debt coverage ratio of this commercial loan:

pishuonlain [190]

Answer:

1.50

Explanation:

The debt coverage ratio shows the extent to which the property is generating income in a bid to pay its debt service charge, it is computed using the below DSCR formula

DSCR= net operating income (NOI)/Debt service

net operating income (NOI)=$150,000

Debt service=interest expense or finance charge in the year=$100,000

DSCR=$150,000/$100,000

DSCR=1.50

The property in question is generating income that is 1.5 times its debt servce yearly

3 0

2 years ago

What is the difference between the Medicare and Medicaid programs?

xenn [34]

<span>A. Medicare provides health care for older people, while Medicaid provides health care for people with low incomes.</span>

6 0

3 years ago

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