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]
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)


You might be interested in
I need help please! <br> what do you think is positive about franchises in general? negative?
mote1985 [20]

It may seem that franchise has many benefits since it allows for a person to open and operate a business without much knowledge of how to run a business and generally franchises are well advertised so not much marketing costs are needed, however negative impacts are much more, since you need to pay lifetime percentages for sales and operating under franchise as well as there is no room for creativity and too much dependence on a big business. Also the funds needed to open a franchise are much higher than same business but operating independently. So negative side is prevailing.

7 0
3 years ago
Ortions of the financial statements for Myriad Products are provided below.
bonufazy [111]

Answer:

Net cash provided from Operating Activities $301

Explanation:

MYRIAD PRODUCTS COMPANY

Cash flow from Operating Activities:

Net Income $150

Adjustment for non cash effects:

Depreciation $84

Amortization $5

Loss on sale of land $4

Total $243

Changes in operating assets and liabilities :

Decrease in Accounts receivable $17

Decrease in Inventory $18

Increase in Accounts Payable $14

Decrease in Salaries Payable ($14)

Increase in Interest Payable $13

Increase in Income tax Payable $10

Net cash provided from Operating Activities $301

5 0
3 years ago
Keynes argued that a. monopolistic elements in the economy will prevent an immediate sharp fall in prices as a result of decreas
Scorpion4ik [409]

Answer:

a. monopolistic elements in the economy will prevent an immediate sharp fall in prices as a result of decreasing demand

Explanation:

When there is recession the price of the factor goes down and with that, the insufficient demand for a certain good or services is eliminated. The reasoning is that the decrease in prices stimulates demand and adjust the market.

Keynes among other economist consider that unemployment increase during recessions because the nominal wages rate do not fall. As the union and worker do not want to see their wage decrease. Same is applied to prices which makes then inflexible in a downward direction.

While "supply creates its own demand" is "Says's Law" which is rejected in keynes main book "The general theory"

Hece option A is the only one which is true

6 0
3 years ago
Sheffield Inc. has outstanding 13,100 shares of $10 par value common stock. On July 1, 2017, Sheffield reacquired 113 shares at
Svetradugi [14.3K]

Answer:

The journal entries for the given economic events are given below:

Date         Account Title                         Debit     Credit

7/1/17      Treasury Stock (113 X $88)     9,944

                 Cash                                                       9,944

9/1/17       Cash (62 X $94)                     5,828

                 Treasury Stock (60 X $88)                   5,280

                  Paid-in Capital from

                  Treasury Stock                                      548

(Paid in capital from Treasury Stock = 5828 - 5280 = 548)

11/1/17 Cash (51 X $86)                           4,386

                Paid-in Capital from

                Treasury Stock                          102

                     Treasury Stock (51 X $88)                   4,488

(Paid in capital from Treasury Stock = 4488 - 4386 = 548)

3 0
2 years ago
8. Suppose the total cost function is as follows: TC= x^3/3 -x^2+11x
elena55 [62]

At 1.5 the average total cost is a minimum and the total cost will be 10.25 where the TC = total cost; x = output (in 1,000 units)

<h3>What are maxima and minima?</h3>

Maxima and minima of a function are the extremes within the range, in other words, the maximum value of a function at a certain point is called maxima and the minimum value of a function at a certain point is called minima.

We have a total cost function:

TC = x³/3 - x² + 11x

Average total cost:

\rm F\left(x\right)=\dfrac{\left(\dfrac{x}{3}^3-\:x^2\:+\:11x\right)}{x}

Differentiating with respect to x and equating to x

d(F(x))/dx = 0

We will get:

x = 1.5

F'(1.5) >  0

At 1.5 the average total cost is a minimum.

Thus, at 1.5 the average total cost is a minimum and the total cost will be 10.25 where the TC = total cost; x = output (in 1,000 units)

Learn more about the maxima and minima here:

brainly.com/question/6422517

#SPJ1

7 0
1 year ago
Other questions:
  • 1. Frank’s electric bill has a cycle day of the 3rd and a due date 8 days later with a one day grace period. What happens if Fra
    5·2 answers
  • Brad, an employee for a sports marketing firm, feels he has been treated unfairly by the organization. He helped three other emp
    5·1 answer
  • There is a bill pending before the kansas state legislature that would prohibit private companies from selling health insurance
    8·1 answer
  • Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 trend percentages for net sales using 20
    11·1 answer
  • The web organizes information by using _____, meaning documents that include embedded references to audio, text, images, video,
    6·1 answer
  • Suppose the price of gasoline decreases from $4.20 to $2.00, and in response quantity demanded increases from 10600 to 11200. Us
    5·1 answer
  • Public Good Contribution: Three players live in a town, and each can choose to contribute to fund a streetlamp. The value of hav
    13·1 answer
  • Broker A is involved in an exclusive right to sell listing with his seller client, Seller S. After receiving the property condit
    5·1 answer
  • A product enters the maturity phase of the life cycle, during which sales are
    7·1 answer
  • Which calculation is needed to assess the component pieces of the operating section using the direct approach for the amount col
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!