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
jok3333 [9.3K]
2 years ago
8

Joanie takes a $6000 loan to pay for her car. The annual interest rate on the loan is $12%. She makes no payments for 4 years, b

ut has to pay back all the money she owes at the end of 4 years. How much more money will she owe if the interest compounds quarterly than if the interest compounds annually?
Business
1 answer:
Maksim231197 [3]2 years ago
5 0

Answer:

The amount due under quarterly compounding is higher by =$ 187.12

Explanation:

To determine the amount  money  by which the quarterly compunding is greater, we would compare the total sum due under the two compounding options.

This is done below:

Quarterly compounding

FV = A × (1+r)^n

PV - principal  amount owed = 6,000

r- quarterly interest rate = 12%/4 = 3% per three month

n - number of quarters in 4 years = 4× 4 = 16

Loan amount due with interest after 4 years

= 6,000× (1.03)^(48) = 9628.23

Annual compounding

PV - principal  amount owed = 6,000

r- annual interest rate = 12% =

n - number of  years = 4  

Loan amount due =6,000× (1.12)^(4) =  9,441.12

The amount due under quarterly compounding is higher by

= 9628.23 - 9,441.12

=$ 187.12

You might be interested in
What are two assumptions pertinent to the resource-based view of competitive advantage? Group of answer choices firms are homoge
qwelly [4]

Answer:

The two assumptions are as <em>resources must also be heterogeneous and immobile.</em>

Explanation:

The two critical assumptions of Resource Based View are <em>that resources must also be heterogeneous and immobile.</em>

Heterogeneous. <em>The first assumption is that skills, capabilities and other resources that organizations possess differ from one company to another.</em>

Immobile. <em>The second assumption of RBV is that resources are not mobile and do not move from company to company, at least in short-run.</em>

6 0
3 years ago
You paid $35 for a ticket (which is non-refundable) to see SPAM, a local rock band, in concert on Saturday. Assume that $35 is t
Blababa [14]

Answer:

the opportunity cost of going to work on saturday is $32

Explanation:

The opportunity cost of going to work on saturday is as follows:

= Income earned on saturday - psychic cost

= 4 hours × $11 - ($2 × 4 hours)

= $44 - $8

= $32

hence, the opportunity cost of going to work on saturday is $32

8 0
2 years ago
Explain how the government is both a consumer and a producer and give one example of th
natita [175]
The government is an consumer because they trade with other countries to get goods that their country need and they are also a producer because they produce strategies for their government to make our communities around the world more better and advanced.
3 0
3 years ago
Michael Chang buys only tennis rackets during a particular year. During the year in question, the price of all goods rises by 10
Zolol [24]

Answer:

Michael does not experience inflation because he only buys Tennis rackets

Explanation:

Inflation is defined as increases in price per unit price.

It is the prolonged increase in the price of goods and services caused by devaluation of currency , demand -pull or cost - push. While a certain degree of inflation can be beneficial to a thriving economy , it can become a threat if it becomes larger.

One of the direct impact of inflation is rise in price of goods and services.

As the price of rackets was not affected by the inflation , that means that Michael was not affected by the inflation.

6 0
2 years ago
Suppose the government launches a successful advertising campaign that convinces workers with high school degrees to quit their
quester [9]

Suppose the government launches a successful advertising campaign that convinces workers with high school degrees to quit their jobs and become full time college students. This would cause the labor force participation rate to decrease.

Let's imagine that the government employs a convincing advertising campaign to persuade those with high school diplomas to quit their jobs and devote their full time to attending college. As a result, the rate of labor force participation would decrease.

The labor force participation rate provides an estimate of the size of the labor force in an economy. The percentage of the working-age, non-institutionalized population, aged 16 and over, that is employed or actively seeking employment is used in the calculation. When paired with the unemployment rates, it can help put the state of the economy in some sort of context.

To know more about labor force refer:

brainly.com/question/14826712

#SPJ4

4 0
1 year ago
Other questions:
  • Ming, a global business person, had a conversation with a local shop owner in his city. The shop owner asked Ming about the chal
    14·1 answer
  • _______________________ are economists who generally emphasize the importance of aggregate supply in determining the size of the
    12·1 answer
  • My answer b am I right
    7·1 answer
  • Game theory is:A. a strategy that requires cooperation when multiple parties are involved.B. a methodology to accomplish winning
    14·1 answer
  • On April 1, 2020, Clare Barry received a 5%, $600,000 note from John Edwards, a customer. The note is due on March 31, 2021. Cla
    11·2 answers
  • Which type of culture would most likely include characteristics such as openness, freedom, debate, and risk-taking?
    12·1 answer
  • How do we achieve higher wages and a higher standard of living for American workers?
    8·1 answer
  • John is working in an organization. He takes backup of files through a replication process and wants to know the amount of time
    12·1 answer
  • Question 12
    10·1 answer
  • What budgeting tips would you help to stay on track financially
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!