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pshichka [43]
3 years ago
10

Your car dealer is willing to lease you a new car for $309 a month for 72 months. Payments are due on the first day of each mont

h starting with the day you sign the lease contract. If your cost of money is 4.9 percent, what is the current value of the lease
Business
1 answer:
kirza4 [7]3 years ago
6 0

Answer:

PV $19,242.04

Explanation:

We will calculate the present value of an annuity using our cost of capital

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C      309

time 72

rate           0.004083333 (A)

309 \times \frac{1-(1+0.0040833)^{-72} }{0.0040833} = PV\\

PV $19,242.04

This will be the present value of the lease at our capital rate.

<em>Notes</em>

(A)The payment are on a monthly basis, so the interest rate must be monthly to. For that we divide the 4.9 percent which is annual by 12

That way the time and rate are on the same metric.

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What good or services is “AMAZON” KNOW FOR
Svet_ta [14]

Amazon. One of the largest online shopping websites in the world. The site is widely known for its wide selection of books, although the site has expanded to sell electronics, music, furniture, and apparel. ... Amazon was founded in 1995 by Jeff Bezos and is based out of Seattle, Washington.

8 0
3 years ago
A company is obligated to pay its creditors $6,460 at the end of the year. If the value of the company's assets equals $6,304 at
rosijanka [135]

Answer:

The shareholders equity=-$156, this means that the liabilities outweigh the assets by $156.

Explanation:

The shareholder's equity can be defined as the net value of a company. It basically is the amount that shareholders would receive if all the company's assets were liquidated and all of the company's debt also paid back. The shareholder's equity is usually found on the company's balance sheet and can be used as a financial measure to determine the company's financial status. The shareholder's equity is determined from subtracting the company's totals liabilities from its total assets. This can be expressed in the formula below;

E=A-L....equation 1

where;

E=shareholder's equity

A=total assets

L=total liabilities

The total assets represents everything that has some economic value to the company. A liability is an obligation to something or anything of economic value that the company owes. In our case, the company has an obligation to pay it's creditors $6,460 at the end of they year. This is a liability.

Use equation 1 above to solve;

E=unknown, to be determined

A=$6,304

L=$6,460

replacing;

E=(6,304-6,460)=-$156

The shareholders equity=-$156, this means that the liabilities outweigh the assets by $156.

3 0
3 years ago
If an employee sits down with a supervisor and sets a goal to reduce waste on the assembly line by 3%, the reward the supervisor
FrozenT [24]

Answer:

Bonus.

Explanation:

Just as the name sounds, so is it an additional pay that is been given to an employee seen to appear above their regular earnings, this bonus is seen to be used by many organizations in different forms are categorically given to employees or a team that achieves significant goals. This little pay go a very long way in the life, performance and output of a team or employee. Also, employee morale, output and also motivation. Due to the positive returns from this act, a lot of organisations tends to practice this ritual consistently because every goal or target reached by an employee or or team brings the organisation closer to success.

6 0
4 years ago
If a coconut is a normal good and the price of coconuts increases, then the movement that would take place in the model could be
masya89 [10]

If a coconut is a normal good and the price of coconuts increases, then the movement that would take place in the model could be B to A.

<h3>What happens when prices rise?</h3><h3 />

For Normal goods, a rise in prices would mean a fall in the quantity demanded. This is shown by the demand curve which shows the relationship between the quantity demanded and price.

When there is a price change, the movement will be along the demand curve which means that the demand curve would see a movement from Point B to Point A for coconuts.

Find out more on price changes and the demand curve at brainly.com/question/1139186

#SPJ1

8 0
1 year ago
What education level has the highest return on investment (ROI)?
Bingel [31]
The answer is B) Bachelor's Degree
6 0
3 years ago
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