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
marishachu [46]
3 years ago
15

ames Sprater of Grand Junction, Colorado, has been shopping for a loan to buy a used car. He wants to borrow $18,000 for four or

five years. James' credit union offers a declining-balance loan at 9.25 percent for 48 months, resulting in a monthly payment of $450.07. The credit union does not offer five-year auto loans for amounts less than $20,000, however. If James borrowed $18,000, this payment would strain his budget. A local bank offered current depositors a five-year loan at a 9.34 percent APR, with a monthly payment of $376.62. This credit would not be a declining-balance loan. Because James is not a depositor in the bank, he would also be charged a $25 credit check fee and a $50 application fee. James likes the lower payment but knows that the APR is the true cost of credit, so he decided to confirm the APRs for both loans before making his decision. Round your answers to two decimal places.
Business
1 answer:
Ghella [55]3 years ago
4 0

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:

r(month)=((1+r(annual))^{\frac{1}{12} } -1)

r(month)=((1+0.0925)^{\frac{1}{12} } -1)=0.00739963

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.

You might be interested in
Please complete the spreadsheet template:
Pachacha [2.7K]

Answer:

I used an excel spreadsheet sine there is not enough room here.        

Explanation:

Download pdf
6 0
3 years ago
Suppose the world price of cotton falls substantially. The demand for labor among cotton-producing firms in Texas willdecrease .
MAVERICK [17]

Answer:

Decrease

Increase

Frictional unemployment.

Explanation:

If the world price of cotton falls considerably, the cotton producing firms will not be able to make the expected level of revenue they have initially projected, this fall in revenue will lead to the firm requiring less labor, therefore there will be a decrease in demand for labour.

However, textile producing firms in South Carolina will see this fall in price as an opportunity to purchase as much cotton as possible, this will therefore lead to the firms needing more labor to work with the large number of inputs purchased. This will therefore, lead to an increase in the demand for labor.

The resulting consequence will therefore be Frictional Unemployment, which is the time spent between jobs by the labor. It results from transferring from the cotton producing firms, to the textile producing firms.

7 0
3 years ago
Lem Co., which accounts for treasury stock under the par value method, acquired 100 shares of its $6 par value common stock for
In-s [12.5K]

Answer:

Additional paid in capital decrease by 100 as a result of the acquisition

Explanation:

Treasury Stock 600 (100 shares x $6)

Additional Paid-In Capital 100 (100 shares x $1)

cash 1,000 (100 shares x $10)

Additional Paid-In Treasury Stock 300

7 0
3 years ago
“All cheques are bills but all bills are not cheque” –Explain
aleksklad [387]

All cheques are bills but all bills are not cheque.

This is correct statement because both cheque and bill are piece of paper which displays money which is to be paid to someone.

A bill is a document which is drawn on any person and there is no name on the bill whereas cheque is a document which is drawn on the payee name only.

Both of these are documents which are used to pay the amount to someone.

A cheque can be drawn payable on demand while bill is drawn on expiry of certain period.

Learn more at brainly.com/question/24469524

7 0
2 years ago
Daniel and Melissa just bought a new house for $200,000. Each quarter, they now have to pay $4,000 in taxes. Which type of tax a
Cerrena [4.2K]
Real estate property
4 0
2 years ago
Read 2 more answers
Other questions:
  • In the construction of a new housing development, which factor of production can be categorized as land?
    8·1 answer
  • A recent study in your reading suggested that ______ spend 13% more than an average customer and refer business equal to 45% of
    12·1 answer
  • When might be the best time to start saving for retirement?
    12·2 answers
  • The inventory records for Radford Co. reflected the following Beginning inventory @ May 1 800 units @ $ 3.20 First purchase @ Ma
    11·1 answer
  • A bank can decrease the degree of moral hazard if it a. ​Monitors the borrowers behaviors b. ​Placing covenants on the loan c. ​
    8·2 answers
  • Changing prices to attract customers is most difficult in a ________.
    13·1 answer
  • Following are the merchandising transactions for Dollar Store:Nov. 1 Dollar Store purchases merchandise for $1,500 on terms of 2
    7·1 answer
  • Patricia Ness is a lawyer specializing in employment law. Her clients showed her that the right-to-work laws create many problem
    6·1 answer
  • 3. John Legend is looking for help to modernize the inventory systems at his company, Green Light. He is looking for information
    14·1 answer
  • Company officers will have direct involvement with their assigned personnel and should have knowledge of organizational policies
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!