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
Orlov [11]
3 years ago
14

Let’s assume that the old clunker you have been driving needs $500 in repairs in order to pass an annual car inspection. You are

considering buying a new car, and you contact car dealers and banks to determine the best deal you can get on a car loan. Assume two different scenarios: (a) The lowest interest rate you find on a five-year car loan is 10 percent, and the annual rate of inflation for the next five years will be 9 percent. (b) The lowest interest rate you can find on a five-year car loan is 6 percent, and the annual rate of inflation for the next five years will be 1 percent. Question: Under which scenario—(a) or (b)—will you pay less, in real income, for your car loan?

Business
1 answer:
Anna11 [10]3 years ago
3 0

Answer

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

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

You might be interested in
Leanne visits the homes of customers to sell newspaper and magazine subscriptions. Her job title is best described as . Kaitlyn
Fed [463]

Answer: Leanne is a journalist

Kaitlyn is a real estate agent

Raphael is cashier

Deon is a vendor

5 0
3 years ago
Read 2 more answers
Which of the following is a process by which investment bankers purchase new securities directly from the issuing company and re
sattari [20]

Answer:

B) Underwriting. 

Explanation:

6 0
2 years ago
Dawn wang heads an ad agency in texas and regularly needs to work with​ copywriters, artists, and designers to come up with effe
lawyer [7]
People are more creative and produce more ideas when they are in a good mood. 
4 0
2 years ago
Several years ago, Castles in the Sand Inc. issued bonds at face value of $1,000 at a yield to maturity of 6.2%. Now, with 6 yea
lyudmila [28]

Answer:

The price of the bond is $659.64.

Explanation:

C = coupon payment = $62.00 (Par Value * Coupon Rate)

n = number of years = 6

i = market rate, or required yield = 15 = 0.15  = 0.15 /2  = 0.075

k = number of coupon payments in 1 year = 2

P = value at maturity, or par value = $1000

BOND PRICE= C/k [ 1 - ( 1 / ( 1 + i )^nk ) / i ] + [ P / ( 1 + i )^nk )]

BOND PRICE= 62/2 [ 1 - ( 1 / ( 1 + 0.075 )^6x2 ) / 0.075 ] + [ $1,000 / ( 1 + 0.075 )^6x2 )]

BOND PRICE= 31 [ 1 - ( 1 / ( 1.075 )^12 ) / 0.075 ] + [ $1,000 / ( 1.075 )^12 )]

BOND PRICE= 31 [ 1 - ( 1 / ( 1.075 )^12 ) / 0.075 ] + [ $1,000 / ( 1.075 )^12 )]

BOND PRICE= $239.79 + $419.85 = $659.64

8 0
2 years ago
A certain production possibilities frontier shows production possibilities for two goods, jewelry and clothing. Which of the fol
svetoff [14.1K]

Answer:

A certain production possibilities frontier shows production possibilities for two goods, jewelry and clothing. The following concepts can not be illustrated by this concept:

  • the flow of dollars between sellers of jewelry and clothing and buyers of jewelry and clothing.

Explanation:

  • A Production Possibilities Frontier also known as the Production Possibility Curve or Transformation Curve. This curve illustrates a country or a business is utilizing its resources effectively by showing the point at which that country or business is producing its products efficiently.
  • This curve is unable to tell you the flow of dollars between the seller and buyers of goods of a business or a country.
  • It only tells us about the production of goods not the flow of cash.
7 0
3 years ago
Read 2 more answers
Other questions:
  • Ibtihal occasionally had garage sales at her home, and also sells a few items each month on Ebay. In one garage sale, she sold a
    7·2 answers
  • The EPA is responsible for setting and enforcing regulation related to
    11·1 answer
  • Ron operates a garbage pickup business. he contracts to pick up garbage from an apartment complex for the next 52 weeks at a pri
    12·2 answers
  • Results from Nedlog Company are as follows: Operating Income $8486 Total Assets $15262 Current Liabilities $3869 Sales $34655 Ta
    14·1 answer
  • Benjamin co. has three products a, b, and c, and its fixed costs are $67,200. the sales mix for its products are 3 units of a, 4
    14·1 answer
  • "Which challenges has China faced in its efforts to become a major player in the global market for consumer electronics and othe
    10·1 answer
  • You and your neighbor Diane have agreed to be partners in CreatePlace Site Design, a website design business for small businesse
    10·1 answer
  • MC Qu. 1-130 A company's financial records at the end.
    7·1 answer
  • You have just deposited $8,500 into an account that promises to pay you an annual interest rate of 6 percent each year for the n
    9·1 answer
  • Mrs. Dill is planning on baking cakes for a summer festival. In order to do this, she needs to spend $15 on new equipment to bak
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!