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valina [46]
2 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]2 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)


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Answer:

International trade is the exchange of capital, goods, and services across international borders or territories.

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Benefits of trade include lower prices and better products for consumers, improved political ties among nations, and efficiency gains for domestic producers.

International trade is the exchange of capital, goods, and services across international borders or territories. Trading-partners reap mutual gains when each nation specializes in goods for which it holds a comparative advantage and then engages in trade for other products. In other words, each nation should produce goods for which its domestic opportunity costs are lower than the domestic opportunity costs of other nations and exchange those goods for products that have higher domestic opportunity costs compared to other nations.

Explanation:

In economics, the production possibility frontier (PPF) is a graph that shows the combinations of two commodities that could be produced using the same total amount of the factors of production. It shows the maximum possible production level of one commodity for any production level of another, given the existing levels of the factors of production and the state of technology.

PPFs are normally drawn as extending outward around the origin, but can also be represented as a straight line. An economy that is operating on the PPF is productively efficient, meaning that it would be impossible to produce more of one good without decreasing the production of the other good. For example, if an economy that produces only guns and butter is operating on the PPF, the production of guns would need to be sacrificed in order to produce more butter. If production is efficient, the economy can choose between combinations (i.e., points) on the PPF: B if guns are of interest, C if more butter is needed, or D if an equal mix of butter and guns is required.

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Answer:

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Dobbs Company issues 6%, two-year bonds, on December 31, 2018, with a par value of $106,000 and semi-annual interest payments.
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Answer: See explanation

Explanation:

a. The issuance of bonds on December 31, 2018.

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Debit Discount on bonds payable $6120

Credit Bonds payable $106000

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b. The first through fourth interest payments on each June 30 and December 31.

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Debit Interest expense = $4718

Credit Discount on bonds payable = $1538

Credit Cash (106000×6%×6/12) = $3180

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Dec, 31.

Debit Interest expense = $4718

Credit Discount on bonds payable = $1538

Credit Cash (106000×6%×6/12) = $3180

(To record interest)

June 30

Debit Interest expense = $4718

Credit Discount on bonds payable = $1538

Credit Cash (106000×6%×6/12) = $3180

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Dec, 31

Debit Interest expense = $4718

Credit Discount on bonds payable = $1538

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c. The maturity of the bonds on December 31, 2020.

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