In order to buy a car worth $25,000 a monthly payment of $622.12 is required.
Mortgages are one type of loan that frequently has a structure that calls for a stream of identical monthly payments. The lender can assess whether the customer's budget can support equal monthly payments by doing so.
Suppose the monthly payment is M.
With 9 percent APR, the effective monthly rate is 9%/12 = 0.75%.
There will be 12 x 4 years, or 48 monthly payments.
The face value of the loan must be equal to the present value of these monthly payments, or
which yields M = 622.12.
If you only paid interest, the monthly payment would be calculated as follows: principal * monthly interest rate (9% /12) = 25,000*0.75% = 187.5.
The results would be that after five years, you would still owe the whole amount of $25,000 and would have to pay $11,250 in interest.
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Answer:
Explanation:
The first statement is Incorrect that Companies using LIFO will report the smallest cost of goods sold. Rest all the three statements that have been provided are correct.
Statement A - Incorrect
Statement B – Correct
Statement C – Correct
Statement D – correct the goods sold. companies using FIFO will report the smallest cost of goods sold.
Answer:
B. Compounding.
Explanation:
Compounding interest is when the interest earned is added to the principal amount at the end of a period. Adding earned interest to the principal increasing the interest earned in the second season as the interest will be calculated with a bigger principal.
Unlike in simple interest where the interest is constant, interest earned increases with time with compound interest. Compounding means adding interest to the principal, implying that the interest earned also earns interest. Compound interest-earning accounts are preferred to simple interest due to their ability to make more interests.
Answer:
a. 4% is a statistic and 1% is a parameter
Explanation:
A statistic is an estimate, for example, something for a sample extended to the entire population. In this problem, we have a shipment of over 1 million parts, and a sample of 100 is selected. Of those, 4% are defective. You have no idea that the 4% is true for the entire population, it is just an estimate. So the 4% is a statistic.
A parameter is something that is a fact about a whole population. For example, no matter the size of the shipment, it will only be accepted if 1% or less of all of the parts are defective. So 1% is a parameter.
So the correct answer is:
a. 4% is a statistic and 1% is a parameter
