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
Slav-nsk [51]
3 years ago
13

Suppose you take out a car loan of $10,000 with an interest rate of 12% compounded monthly. you will pay off the loan over 48 mo

nths with equal monthly payments.
a) what is the monthly interest rate?
b) what is the amount of the equal monthly payment?
c) what is the interest payment for the 20th payment?
d) what is the total interest paid over the life of the loan?
Business
1 answer:
zheka24 [161]3 years ago
4 0

Answer:

a) 1% per month

2) 263.34 dollar per month

3) interest will be of 64,03‬ in the 20th payment

d) total payment: 2,640.32

Explanation:

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

PV 10,000

time 48

a) monthly rate: 12% annual / 12 months per year = 1% = 0.01

10000 \div \frac{1-(1+0.01)^{-48} }{0.01} = C\\

b) C  $ 263.338

amortization at the 1st payment:

263.34 - 10,000 x 0.01 = 163.34

at the 20th payment:

163.34 x 1.01^20 = $199.3058

interest: cuota - amortization = 263.34 - 199.31 = 64,03‬

d) 263.34 x 48 - 10,000 = 2.640,32‬

You might be interested in
Gavin's position at Pharma-Tech involves purchasing complex manufacturing components, making decisions based on technical data,
Diano4ka-milaya [45]

Answer:

yo no hablo takataka

Explanation:

taktaltakatakatalatal

7 0
3 years ago
Assume that Parker Co. will receive SF200,000 in 360 days. Assume the following interest rates: U.S. Switzerland 360-day borrowi
frez [133]

Answer:

d. $96,914

Explanation:

Parker Co. can execute money market hedge in following steps:

(1) Parker Co. pledges Receivable of SF200,000 to borrow SF190,476 with rate 5% in Switzerland; SF190,476 = SF200,000/ (1+5%)

so it has to pay interest expense of SF9,524 in 360 days. The receivable of SF200,000 is enough for both principal and interest in 360 days.

(2) Then it sells SF190,476 at spot rate $0.48 to get $91,428

(3) Then it deposits $91,428 in US with rate 6% to get back $96,914 in 360 days ; $96,914 = $91,428 * (1+6%)

3 0
4 years ago
5. Explain what would happen to interest rates if a new process was developed that allowed automobiles to run off oil that was f
harkovskaia [24]

Answer:

When the new processes are developed for manufacturing it results in interest rate fluctuations. However, operational costs would become uncertain which would further affect the total production costs. Thus the value of an investment would be impacted. Automobile demand from the customers will also get affected. thus, fall in interest rate will have a significant and positive affect on the sale of automobiles as well as revenue.

3 0
3 years ago
On the basis of the research it has gathered on consumer perceptions, the tests it has conducted, and competitive considerations
Amanda [17]

Answer:

1) the product launch

Explanation:

The product launch process is referred to the systematic research and planning by which it could be ensured that costumers will receive a new product positively.

In this case, XYZ firm has been hired to develop market research to confirm the target market of the product and hot it will be positioned in it.

6 0
3 years ago
Ben hired Lewis to drive his car in a race. Tuan, a friend of Lewis, promised to pay Lewis $3,000 if he won the race. Lewis won
qaws [65]

Answer:

Consideration contract.

Explanation:

Consideration is basically the fact that Lewis never offered something in consideration to Tuan for his offer to pay the $3,000, this means that both parties need to have a benefit from the agreement and both should have a detriment, if only one party has a benefit that is considered a gift, and the law can´t force someone to gift something. This is why Tuan claim is correct and he isn´t forced to pay the $3,000 to Lewis.

8 0
3 years ago
Other questions:
  • Turner Company issued $300,000 of 6%, 5-year bonds at 98.
    13·1 answer
  • What is not Likly to be a major problem for business during a period of ongoing inflation?
    11·2 answers
  • Although e-mail has replaced paper memos for many messages inside organizations and for some letters to external audiences, hard
    15·1 answer
  • Suppose an oligopolistic producer assumes its rivals will ignore a price increase but match a price cut. In this case the firm p
    8·1 answer
  • In Sheridan Company, the Cutting Department had beginning work in process of 9000 units, transferred out 24600 units, and had an
    6·1 answer
  • An annual has 15 years to maturity. It has a coupon rate of 5%, a YTM of 8%. Fill in the cells highlighted in yellow, and aswer
    13·1 answer
  • In September 2019, the budget committee of Jason Company assembles the following data: 1. Expected Sales October $1,800,000 Nove
    9·1 answer
  • Robert treats coffee and creamer as perfect complements and has very specific requirements for the ratio of creamer to coffee. H
    11·1 answer
  • The following happened in a recent M&A transaction:
    13·1 answer
  • According to the reading, what are some strategies for saving money? (Select all that apply)​
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!