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harkovskaia [24]
3 years ago
13

After visiting several automobile dealerships, Richard selects the used car he wants. He likes its $10,000 price, but financing

through the dealer is no bargain. He has $2,000 cash for a down payment, so he needs an $8,000 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $8,000 for a period of four years at an add-on interest rate of 11 percent. What is the total interest on Richard’s loan? What is the total cost of the car? What is the monthly payment? What is the annual percentage rate (APR)?
Business
1 answer:
liq [111]3 years ago
7 0

Answer:

A. $3,520

B. $13,520

C. $240 monthly

D. 21.55%

Explanation:

A. Calculation for the total interest

Using this formula

Interest = (Principal) (Rate) (Time)

Let plug in the formula

Interest = (8000)(.11)(4)

Interest = $3,520

B. Calculation for the total cost of the car

Using this formula

Total Cost = Down Payment + Principal amount Borrowed + Interest amount

Let plug in the formula

Total Cost = $2,000 + $8,000 + $3,520

Total Cost = $13,520

C. Calculation for the monthly payment

Using this formula

Monthly Payment = (Principal amount Borrowed + Total interest amount ) / Total number of payments

Monthly Payment = ($8,000 + $3,520) / 48

Monthly Payment=$11,520/48

Monthly Payment=$240 monthly

Note 4-year * 12 months will give us 48months

D. Calculation for the annual percentage rate (APR) using this formula

APR= (2 × n × I) / [P × (N + 1)]

Let plug in the formula

APR = (2 × 12 × $3,520) / [$8,000 × (48+1)]

APR =$84,480/$8,000×49

APR=$84,480/$392,000

APR=0.2155×100

APR= 21.55%

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Answer:

The correct answer is that the company should <u>charge more to the business travelers</u> and <u>charges less to the vacationers</u>.

Explanation:

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Secondly, the <em>price elasticity of demand</em> is an elasticity application in economics that establishes the changes that occur to the demand of a product when the price changes. This elasticity could be inelastic or elastic. In addition, if the price elasticity of demand is inelastic then when the price changes the quantity demanded of that product will not change drastically while in the other hand, if the price elasticity of demand is elastic then when the price changes the quantity demanded of that product will change drastically so therefore the consumers reject the change in the price.

Finally, if the company wants to increase its total revenue then it must increase the price that charges to the business travelers and decrease the price that charges to the vacationers.

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Using the picture of the supply and demand curves below, identify the point which
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Answer:

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<em>sry </em><em>if </em><em>I </em><em>a</em><em>m</em><em> </em><em>wrong</em>

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The correct answer is C. Federal income tax

Explanation:

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1.List the three steps of the planning phase of the strategic marketing process. Briefly describe the core elements and the purp
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Answer:

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  • Defining target audience - in this step, a segment of the market is chosen as the target for the good or service. (for example, young people, old people, wealthy people, poor people, etc).
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2.Which demographic cohorts are also known as the Millennial and Z Generations?

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Problem or need recognition: in this stage, the customer becomes aware of a need that has not been met.

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Post-purchase behaviour: the customer makes use of the product, or service, and decides whether his need was satisfied or not. ALso decides whether to buy the same good or service in the future or not.

3 0
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Dafna11 [192]

Answer:

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