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Contact [7]
3 years ago
6

7. You have saved $4,000 for a down payment on a new car. The largest monthly payment you can affort is $350. The loan will have

a 12% APR based on end-of-month payments. What is the most expensive car you can affort if you finance it for 48 months? For 60 months?

Business
1 answer:
nordsb [41]3 years ago
8 0

Answer:

$13,290.89  and $15,734.26

Explanation:

In this question we have to use the Present value function which is shown on the attachment below:

In the first case

Provided that

Future value = $0

Rate of interest = 12%  ÷ 12 months = 1%

NPER = 48 months

PMT = $350

The formula is shown below:

= PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $13,290.89

In the second case

Provided that

Future value = $0

Rate of interest = 12%  ÷ 12 months = 1%

NPER = 60 months

PMT = $350

The formula is shown below:

= PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $15,734.26

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goldenfox [79]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

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7 0
3 years ago
The journal entry a company records for the issuance of bonds when the contract rate is greater than the market rate would be
ahrayia [7]

Answer:

C. debit cash, credit premium on bonds payable and bonds payable

Explanation:

Since the contract rate is greater than the market rate, the bond is issued at a premium. And, the journal entry is shown below:

Cash A/c Dr XXXXX

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When the bond is issued at a premium, we debited the cash account and credited the premium on bonds payable and bonds payable account

4 0
3 years ago
Bjorn felt that the focus groups did not give him enough quantitative information to make a decision, so he directed his manager
klio [65]

Answer:A

Explanation:

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4 0
3 years ago
I was doing good until this question
IrinaVladis [17]

i believe it is all but 2

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3 years ago
Route Canal Shipping Company has the following schedule for aging of accounts receivable:Age of Receivables April 30, 20X1 (1) (
m_a_m_a [10]

Answer:

Explanation:

The formula to compute the percentage of amount due for each month is shown below:

= (Month wise amount due) ÷ (Total receivables) × 100

For April:

= ($156,240) ÷ ($390,600) × 100

= 40%

For March:

= ($78,120) ÷ ($390,600) × 100

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For February:

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