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3 years ago

A down payment of 15% of the $21,200 purchase price of a new car is made. Find the amount financed.

1 answer:

6 0

Hello.

The answer to 1 is $3,180
All you have to do is divide 21,200 by 15%

The answer to 2 that is also true. You would have to find the unit rate to be able to find how much miles to operate.

Have a nice day

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Find the face value of the 20-year zero-coupon bond at 4.4%, compounded semiannually, with a price of $8,375.

umka21 [38]

Given:

Time,

t = 20 years

Rate,

r = 4.4%

Price

= $8,375

Now,

The yield will be:

= $\frac{4.4}{2}$

= $1.1$ (%)

Time will be:

= $20\times 2$

= $40 \ periods$

As we know the formula,

⇒ $Price \ of \ bond = \frac{Face \ value}{(1+\frac{r}{2} )^{n\times 2}}$

By substituting the values, we get

$8375=\frac{Face \ value}{(1+\frac{0.044}{2} )^{20\times 2}}$

$8375=\frac{Face \ value}{(1.022)^{40}}$

$8375=\frac{Face \ value}{2.3880083}$

The face value will be:

$Face \ value = 2.3880083\times 8375$

$=20,000$ ($)

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