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
faltersainse [42]
3 years ago
9

Effective annual rate: Raj Krishnan bought a Honda Civic for $17,345. He put down $6,000 and financed the rest through the deale

r at an APR of 4.9 percent for four years. What is the effective annual rate (EAR) if the loan payments are made monthly
Business
1 answer:
g100num [7]3 years ago
3 0

Answer:

EAR = 5.01%

Explanation:

Given that

APR = 4.9% = 0.049

Loan amount = initial amount - deposited amount

= 17345 - 6000

= 11,345

PV = 11345

Frequency of compounding, m = 12

Recall that

EAR = (1 + r/m)^n - 1

Thus,

= (1 + 0.049/12)^12 - 1

= 1+ 0.049/12^12 - 1

= 1.0501 - 1

= 0.0501 ×100

= 5.01%

You might be interested in
U.S. real gross domestic product changed from $14.2 trillion in 2005 to $14.8 trillion in 2010. During that same time period, th
Oduvanchick [21]

Answer:

The dollar value of manufactured output is 2.8248%

Explanation:

change in % = final - initial/initial

                     = 1.82 - 1.77/1.77 * 100

                     = 2.8248%

Therefore, The dollar value of manufactured output is 2.8248%

7 0
3 years ago
A bank has $8,000 in deposits and $6,000 in loans. it has loaned out all it can given the reserve requirement. it follows that t
True [87]
<span>The reserve requirement, which is also referred to as the cash reserve ratio, is 25 percent. This is calculated by subtracting the $6,000 loaned out from the bank's $8,000 in deposits, yielding a reserve of $2,000. The reserve requirement is calculated by dividing $2,000 by $8,000.</span>
4 0
3 years ago
What is the law of demand and supply<br><br><br>​
Svetradugi [14.3K]

Answer:The law of supply and demand is a theory that explains the interaction between the sellers of a resource and the buyers for that resource. The theory defines what effect the relationship between the availability of a particular product and the desire (or demand) for that product has on its price.

Explanation:

8 0
3 years ago
We refer to the Federal Reserve as ?<br> “The b... b..”
antoniya [11.8K]

Explanation:

the federal receive the common thing

3 0
3 years ago
What is the main difference between whole life insurance and term life insurance?
Stella [2.4K]

Whole life insurance is a type of program that you pay for your "whole life." The premiums tend to stay level on whole life policies.

On the other hand, term life insurance gradually gets more expensive as you get older. Term life insurance is simply the pure cost of insurance with no savings element.

8 0
3 years ago
Other questions:
  • On january 1, 2016, pet friendly stores adopted the retail inventory method. inventory transactions at both cost and retail, and
    5·1 answer
  • What happens during the adjourning stage of the five-stage group-development model? wrapping up activities assimilating a common
    10·2 answers
  • After tyrese and ryan move in together, ryan finds himself disappointed. he thought they'd spend all their time together, but ty
    11·1 answer
  • When demand is inelastic and price is decreased:
    15·1 answer
  • 1.What are things you can do to manage the risks in your life to reduce any financial losses?
    9·1 answer
  • Which statement is true about popular culture and stereotypes?
    10·1 answer
  • DAR Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under P
    8·1 answer
  • It is now January 1, 2013, and you are considering the purchase of an outstanding bond that was issued on January 1, 2011. It ha
    15·1 answer
  • If the price of a $10,000 par Treasury bond is $10,275.00, the quote would be listed in the newspaper as ________.
    7·1 answer
  • What are the two major components of a working capital management strategy
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!