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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)


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A customer establishes a combined margin account by purchasing $10,000 of ABC stock and selling short $10,000 of XYZ stock, depo
Bess [88]

Answer:

Current SMA balance is $15,000

Explanation:

SMA means special memorandum account, where excess margin recouped from investing the fund in customer's margin account is held.

Since ABC was bought for $10,000, while it's current worth is $20,000

Margin recorded = $20,000 - $10,000

= $10,000

XYZ stock sells short at $10,000, while it's current worth is $5,000

Margin recorded on short sell

=$10,000 - $5,000

=$5,000

SMA current balance

= $10,000 + $5,000

= $15,000

8 0
3 years ago
The price of tents, a complement to sleeping bags, increases. how will this affect the market for sleeping bags?
Lelu [443]

If the price of tents should increase then it would cause the demand for sleeping bags to reduce.

<h3>What is a complementary good?</h3>

This is the term that is used to refer to the goods that are bought and used alongside another good. What this means is that both goods are used together.

Hence when the price of one complement good rises, it would cause the demand of that good to reduce and also reduce the market for that good.

Read more on complement goods here: brainly.com/question/1338465

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4 0
2 years ago
Reagan Corp. acquired one hundred percent of Ford Inc. on January 1, 2016, at a price in excess of the subsidiary's fair value.
Artyom0805 [142]

Answer:

B. $497,000

Explanation:

           Consolidated Balance of Equipment

Excess value at the acquisition                  $110,000

($350,000-$240000)

Book value as on Dec 31 2018 of Ford      $170,000

Book value as on Dec 31 2018 of Regent  $250,000

Less: excess depreciation                          <u>-$33,000  </u> ($110,000/10*3)

Consolidated balance of equipment        <u>$497,000</u>

3 0
4 years ago
Which is a helpful resource for you during the process of buying a home? A. Realtors B. Local programs C. Government programs D.
Klio2033 [76]

Answer:

A. Realtors

Explanation:

A realtor is a professional who helps clients buy and sell properties.  Realtors are registered by the National Association of Realtors (NAR) and licensed to practice by their local authorities.

Realtors work for real estate companies. They may be real estate agents, salespeople, residential and commercial real estate brokers, property managers, or appraisers. Since they are recognized by law, and their work revolves around properties, realtors stand in a better position to assist someone buying a house.

3 0
3 years ago
Financial managers:
expeople1 [14]

Answer:

c. are reluctant to cut dividends.  

Explanation:

For shareholders of a company a news on dividend cut is not at all a good news. This leads to an expectation that the company might cut future dividends. This leads to a fall in share price and decrease in market value of the company.

7 0
3 years ago
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