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
Mazyrski [523]
3 years ago
11

You see a used sporty car that you would like to own. It costs $9,000 and you would pay 7.2% interest, compounded monthly and fi

nance for 3 years. How much will you loan balance be after the first payment?
Business
1 answer:
bogdanovich [222]3 years ago
3 0

Answer:

$24,705.8

Explanation:

To find the answer, we will use the present value of an annuity formula:

PV = A (1 - (1 + I)^-n / i

Where:

  • PV = Present value of the investment (in thise case, the cost of the car)
  • A = Value of the annuity (the monthly payments)
  • i = Interest Rate
  • n = number of compounding periods

The monthly payments are an annuity: they are periodic, fall under the same interest rate, and have the same value, therefore, if we find the value of the annuity, we will find the value of the first monthly payment at the same time (both things are the same):

Plugging the amounts into the formula we obtain:

9,000 = A ( 1 - (1 + 0.072)^-36 / 0.072

9,000 = A (12.75)

9,000 / 12.75 = A

705.88 = A

Now, to find the full value of the loan, we multiply the annuity value for 36, because that value will be paid 36 times until the loan is completed:

Full value of the loan = 705.88 x 36

                                   = 25,411.68

Finally, to find the loan balance after the first payment, we take the full value of the loan, and substract the value of the annuity from it:

Loan balance after first payment = 25,411.68 - 705.88

                                                      = 24,705.8

You might be interested in
Global information systems pose challenges because cultural, political, and language diversity magnifies differences in organiza
svp [43]

Answer:

the correct answer is:

Typically, international systems have evolved without a conscious plan. The remedy is to define a small subset of core business processes and focus on building systems to support these processes. Tactically, managers will have to co-opt widely dispersed foreign units to participate in the development and operation of these systems, being careful to maintain overall control.

Explanation:

Companies when crossing national borders also increase the need for information. International organizations that have a centralized management must be aware of what is happening in the world.

Information Systems Directors will be required to have greater involvement in the evolution and operation of technical tasks. Their participation in the company's strategy will increase and they will have to deal with this process, since they will participate in the changes or advances of the business areas. In addition, they will have to face numerous challenges in the coming years, specifically the optimization of ICT processes and the promotion of the use of best practices (ITIL, CMMI ...), the control and application of new collaborative tools, as well as the Infrastructure rationalization. In short, they will lead the leadership in innovation and value creation of the aforementioned new technologies.

8 0
3 years ago
Assume the demand for crack cocaine is inelastic and that users get the funds to pay for their crack by stealing. Suppose that t
Kobotan [32]

Answer:

Total Revenue of Cocaine will increase.

Explanation:

Elasticity of demand is demand responsiveness to price change.

Price & Total Revenue have relationships as per Elasticity of Demand :

  • Elastic Demand >1 : Change in quantity demanded  >  change in price ; Price & Total Revenue negatively related.
  • Inelastic Demand < 1 : Change in quantity demanded < price change ; Price & Total Revenue positively related

Given : Demand for crack cocaine is inelastic. If government increases penalties on cocaine supply, number of dealers decrease.

Then , the supply of cocaine will fall. Supply Shortage will increase the price. However - because demand is inelastic , total revenue will increase as a result of price rise.

4 0
3 years ago
Help please!!!! will mark brainlest!!
alina1380 [7]
Answer:

For centuries the guideline for business transactions was the Latin term “caveat emptor” (let the buyer beware). This principle suggests that the seller is not responsible for the buyer’s welfare. In other words such principle gives the buyer the sole responsibility for checking the quality and suitability of the goods that he is buying from the seller before making a final purchase.
6 0
3 years ago
A $63,000 machine with a 7-year class life was purchased 2 years ago. The machine will now be sold for $50,000 and replaced with
Lapatulllka [165]

The initial outlay for the project after depreciation is loss of $26,700.

<h3>What is  depreciation?</h3>

Depreciation in accounting refers to two parts of the same concept: first, the real decline in fair value of an asset, such as the worth of factory equipment each year.

Depreciation is used to match the cost of a productive asset with a useful life of more than a year to the revenues received by employing the asset. The expense of an asset is frequently spread out throughout the years that it is used.

Section 32 of the Income Tax Act of 1961 contains the provision for authorising depreciation. Depreciation is a deduction allowed by the Income Tax Act for the reduction in the real worth of a physical or intangible asset used by a taxpayer.

To know more about  depreciation follow the link:

brainly.com/question/1203926

#SPJ4

8 0
2 years ago
The difference between scenario analysis and sensitivity analysis is that:__________
Sergeu [11.5K]

Answer:

C) scenario analysis considers the effect on NPV of changing multiple project parameters.

Explanation:

Scenario analysis is used to determine the effect on the end result if several parameters are changed . Sensitivity analysis on the other hand involves the effect on the end result due to change in one parameter. With regard to net present value, the scenario analysis on the project will based on effects of changing multiple parameters for example how NPV will change due to increase in price of the products sold, changes in inflation rate and changes in corporate taxes.

3 0
3 years ago
Other questions:
  • XYZ, Inc., has issued 11 million new shares of stock. An investment bank agrees to underwrite these shares on a best efforts bas
    10·2 answers
  • What three activities are typically involved in the production planning process
    9·2 answers
  • Apple's selling iphones to customers in africa, asia, and europe is an example of the globalization of ________.
    9·1 answer
  • Aztec Corp. is a manufacturer of truck trailers. On April 1, 2020, Aztec Corp. leases ten trailers to Wildcat Company under a si
    5·1 answer
  • When the internet really took off, much of the internet’s operating infrastructure transitioned to be supported by government gr
    15·1 answer
  • The multiplier effect occurs when an initial increase (or decrease) in autonomous expenditure produces a greater increase (or de
    15·1 answer
  • Youngstown Rubber reports the following data for its first year of operation.
    10·1 answer
  • Recently many large commercial and retail banks have been choosing to increase the amount of excess reserves they hold in the Fe
    14·1 answer
  • A share of stock sells for $53 today. The beta of the stock is .7 and the expected return on the market is 16 percent. The stock
    6·1 answer
  • "What are the results of a contractionary monetary policy, which intends to slow down the economy, and what are not? You are cur
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!