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Tasya [4]
3 years ago
6

g You borrow $10,000 from your bank to buy a new car. If the loan is for four years at 7% annual interest and payments are made

monthly, how much will your monthly payments be
Business
1 answer:
Lubov Fominskaja [6]3 years ago
6 0

Answer:

$ 238.47

Explanation:

To do the calculation first you have to identify that they are asking for the monthly payment so all the calculation will be done by month.

First you calculate the monthly rate, you change the TEA 7% to TEM which is 0.57%  (use the formula (1+TEA)^(1/12))-1.

The loan period is 4 years but you have to convert it to months so will be 48 months.

With all this information you can calculate the payment by month, you can use excel with the excel formula <u>PMT(rate;period;loan amount)</u>.

You might be interested in
The weighted-average cost of capital for a firm with a 65/35 debt/equity split, 8% pre-tax cost of debt, 15% cost of equity, and
Vinil7 [7]

Answer:

weighted-average cost of capital is 11.57 %

Explanation:

Weighted Average Cost of Capital (WACC) is the return that is required by providers of long term permanent sources of capital.

WACC = Weight of Equity × Cost of Equity + Weight of Debt × After tax cost of debt.

where,

After tax cost of debt = interest × ( 1 - tax rate)

                                     = 8% × (1 - 0.35)

                                     = 5.20 %

Therefore,

WACC = 0.65 × 15% + 0.35 × 5.20 %

           = 11.57 %

8 0
3 years ago
Outsourcing value chain activities has such strategy-executing advantages as
steposvetlana [31]

Answer:

The correct answer is "a"

Explanation:

Outsourcing value chain activities has such strategy-executing advantages as less internal bureaucracy, speedier decision-making, quicker responses to changing market conditions, and heightened focus on performing a select few value chain activities (which can improve performance of those activities).

Outsourcing is a business method in which a company contracts an outside supplier to obtain goods and services. To reduce possible internal bureaucracy.

8 0
3 years ago
Should banks have to hold 100% of their deposits? Why or why not?
fomenos

Answer:

No, they dont have to hold the 100%.

Explanation:

Because banks use the money deposited to make loans to other clients. By general rule the Commercial Banks are required to keep only the 10% of each deposit made in an account.

8 0
3 years ago
Define bond economics.​
valentinak56 [21]
In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. The most common types of bonds include municipal bonds and corporate bonds. Bonds can be in mutual funds or can be in private investing where a person would give a loan to a company or the government.
6 0
2 years ago
Roll over each phrase to see various actions that ensure fair communications. Then drag the actions to the most appropriate cate
marta [7]

Answer / Explanation:

Access: Real motives, Asking customers, Providing data, allowing expression

Impacts: Thinking about your idea, thinking of the community

Fact: Checking your report, Avoiding exaggeration

Respect: Valuing others opinions, choosing words carefully.

Now to be able to fully comprehend the aforementioned above, let us define a couple of them.

Access: This simply refers to being able to get approval to what is needed

Impact: This refers to or can be likened to the action of an object coming forcibly into contact with another external object.

Fact: This can be likened to a process that has been tested and proven to be an established principle.

Respect: This can be referred to as the feeling of admiration for an individual or group of people due to their perceived abilities or level of achievement.

With the brief definition of this terms, i hope you find it logical why the action were dragged to the perceived most appropriate category.

5 0
2 years ago
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