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
valina [46]
3 years ago
13

George bought a car for $26,500. he made no down-payment and financed the entire amount on a 5-year term with a monthly payment

of $695. (a) (3 pts) what is the interest rate per month for the loan?
Business
1 answer:
pentagon [3]3 years ago
4 0
Given:
Principal, P = 26500
term=5 years
Monthly payment, A = 695

Question: Find interest rate

Solution:
Unless there is a table available, there is no explicit formula to calculate interest.  However, the interest rate can be solved for using the formula to calculate the monthly payment, as follows.

A=\frac{P(i*(1+i)^{n})}{(1+i)^{n}-1}
Substituting 
P=26500
i=monthly interest rate to be found
A=monthly payment=695
n=5*12=60 months
A=\frac{26500(i*(1+i)^{60})}{(1+i)^{60}-1}
Rearrange to give successive estimates of i by
I(i)=(695/26500)*((1+i)^60-1)/(1+i)^60
Try initial estimate of i=0.02  (2% per month)
I(0.02)=0.0182
I(0.0182)=0.01736
I(0.01736)=0.01689
....
Eventually we get the value to stabilize at i=0.016265, or
Monthly interest = 1.6265% (to four decimal places)


You might be interested in
which reason for holding inventory is exemplified when a firm builds up stock because they anticipate rising profit levels in th
Natali [406]

The expenses incurred for keeping goods or inventory in a warehouse are known as inventory holding costs.

<h3 /><h3>What is inventory holding cost?</h3>
  • The expenses incurred for keeping goods or inventory in a warehouse are known as inventory holding costs.
  • Inventory that is kept on hand is a liability that reduces profit margins and raises operating costs for firms.
  • Inventory holding expenses include rent for the facility, security fees, depreciation costs, and insurance.
  • To reduce stock-out costs, merchandise is kept on hand.
  • To ensure that no consumer leaves empty-handed, all businesses must forecast the demand for their products and maintain inventories of raw materials, finished goods, work-in-progress, and consumables.
  • Within a single supply chain, inventory holding costs are computed as a portion of the overall inventory costs.
  • Storage, insurance, labor, transportation, depreciation, shrinkage of the inventory, spoilage of the inventory, obsolescence, and opportunity costs are some of the costs.

To Learn more About inventory holding refer to:

brainly.com/question/26533444

#SPJ4

5 0
1 year ago
What is a good good excuse to give your Professor for not passing homework in in time because your sick and have no access to in
In-s [12.5K]

Answer:

Dear Professor, I just wanted to let you known I failed my homework because, after I moved I have no access to the internet. I am very sorry.

5 0
3 years ago
The U.S. National Treasury issued $3 million of 2.7% bonds, due in 10 years, with interest payable annually at year-end. Calcula
lesya [120]

Answer:

$81000

Explanation:

The calculation is simple. Bond interest is simply calculated by multiplying bond value with the assorted interest rate.

For example

A bond with $1000 value with 5% interest is simply 5% of $1000 = $50

Therefore,

$3,000,000 * 2.7% = $81000

(2.7 % = 0.027)

Hope that helps.

3 0
3 years ago
Ernesto baca is employed by bigg company. he has a family membership in his company's health insurance program. the annual premi
Vaselesa [24]

A. $1,086.40

$5,432 * 20% = $1,086.40

7 0
3 years ago
A phone company offers two monthly charge plans. In Plan A, there is no monthly fee, but the customer pays cents per minute of u
Andreas93 [3]

Answer:

For more than 180 minutes of phone use.

Explanation:

Let m represent number of minutes of phone use in a month.

We have been given that in Plan A, there is no monthly fee, but the customer pays $0.06 per minute of use.

The cost of using m minutes in plan A would be 0.06m.

We are also told that in Plan B, the customer pays a monthly fee of $4.80 and then an additional $0.03 per minute of use.

The cost of using m minutes in plan B would be 0.03m+4.80.

To find the amounts of monthly phone when Plan A will cost more than Plan B, we will set cost of plane A greater than cost of plan B as:

0.06m>0.03m+4.80

Let us solve for m.

0.06m-0.03m>0.03m-0.03m+4.80

0.03m>4.80

\frac{0.03m}{0.03}>\frac{4.80}{0.03}

m>180

Therefore, Plan A will cost more than Plan B for more than 180 minutes of phone use.

4 0
3 years ago
Other questions:
  • Which type of advertisement is most likely to make you submit your ad far in advance?
    9·2 answers
  • What motivates companies like starbucks to expand into international markets with little perceived interest for their product?
    6·1 answer
  • Harrison works at a nationally known grocery store chain. He is analyzing sales data from the past five years to determine which
    9·1 answer
  • Waterway Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to tota
    12·1 answer
  • The value of the goods and services Australia purchases from the U.S. are less than the value of goods and services the U.S. pur
    8·1 answer
  • Match the definition with the correct type of unemployment. Not all items will be used.
    9·1 answer
  • If the market maker is willing to purchase the entire block of 1,500 shares from Amara and, from that block, resell 1,000 shares
    5·1 answer
  • On January 1, 2021, Red Flash Photography had the following balances: Cash, $20,000; Supplies, $8,800; Land, $68,000; Deferred R
    7·1 answer
  • When blood that is low in oxygen is pumped out of the right ventricle, what is the order of vessels in its path
    6·1 answer
  • The amount of reserves that a commercial bank is required to hold is equal to?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!