Consider a firm operating in a competitive market. The firm is producing 40 units of output, has an average total cost of produc
1 answer:
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Answer:
annual withdrawals is $1,393.87
Explanation:
given data
Amount Deposited = $5,000
Annual Interest Rate = 7.2%
First withdrawal = 2020
last withdrawal = 2025
solution
we consider equal sized annual withdrawals = x
so we can say that Amount Deposited amount will be as
$5,000 = ..........1
we take common here
so
$5,000 =
solve it we get
x = $1,393.87
so that annual withdrawals is $1,393.87
Answer:
James' credit union loan rate is 8.88% APR, the local bank loan rate is 9.34% APR.
Explanation:
Hi, since in both cases payments would be done in a monthly basis, we have to assume that the rate that we are looking for is APR (compounded monthly), and since there is no additional information in regards that 9.25% rate, we can assume that this is effective annually, so let´s convert this effective monthly rate into APR (compounded monthly)
First, we have to convert it into an effective monthly rate, that is:
Then we multiply by 12 and we get 0,088796 , which is 8.88% APR (compounded monthly)
This way James can compare both credits. The cheaper loan is from the credit union.