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OLEGan [10]
3 years ago
9

Todd can afford to pay $390 per month for the next 7 years in order to purchase a new car. The interest rate is 6.8 percent comp

ounded monthly. What is the most he can afford to pay for a new car today
Business
1 answer:
zvonat [6]3 years ago
4 0

Answer:

$26,036.74

Explanation:

Tom is able to pay $390 per month for 7 years. The interest rate is 6.8 %. Tom will pay an equivalent of the present value of a $390 annuity for & years 6.8 per cent

The applicable formula is

PV = P ×  1 − (1+r)−n

                      r

Where PV is the present value

P is 390

r is 6.8% per year or 0.005666

n is 7 year or 84 months

PV = $390 x 1-(1+0.005666)84

   0.00566

PV = $390  x 1- 0. 622133410)

   0.00566

PV =390  x  (0.37786659/0.00566)

PV = $390 x 66.760

PV = $26,036.74

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Answer:

B) Ryan's stock was sold for $9 a share causing him to lose most of his profits.

Explanation:

Stop loss order means the limit the loss to the extent investor has opted. Since Ryan placed a stop loss order at $70, so, when the price of the stock starts at $9, the stock would be sold at $9 because it is the next available price to what he placed a stop loss order.

So, the Answer is Ryan stock is sold for $9 a share causing him to lose most of his profits.

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2 years ago
A 1-year gold futures contract is selling for $1,645. Spot gold prices are $1,592 and the 1-year risk-free rate is 3%. The arbit
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The arbitrage profit implied by these prices is $5.24.

<h3>Arbitrage profit</h3>

Given:

Future contract= 1645

Sport gold price = 1592

Risk-free rate (rf) = .03

Hence:

Arbitrage profit=1645-[1592(1+1.03)¹]

Arbitrage profit=1645- 1639.76

Arbitrage profit=1645 =$5.24

Therefore the arbitrage profit implied by these prices is $5.24.

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5 0
1 year ago
If equilibrium is achieved in a competitive market the deadweight loss will equal the sum of consumer surplus and producer surpl
marysya [2.9K]

Answer:

there is no deadweight loss.

Explanation:

In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.

This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.

Generally, a perfectly competitive market is characterized by the following features;

1. Perfect information.

2. No barriers, it is typically free.

3. Equilibrium price and quantity.

4. Many buyers and sellers.

5. Homogeneous products.

Examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market.

Hence, if equilibrium is achieved in a competitive market then, there is no deadweight loss i.e a loss of economic efficiency due to a lack of balance in competing economical influences for goods or services.

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3 years ago
For a manufacturing firm, cost of goods available for sale is computed by adding the beginning finished goods inventory to
vagabundo [1.1K]
The answer is $230,000. For a manufacturing firm, cost of goods available for sale is computed by adding the beginning finished goods inventory to $230,000
8 0
3 years ago
Use what you have learned about demand to answer the question. Based on the law of demand, when the price of a specific good dec
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Answer:

The answer is: It will increase.

Explanation:

According to the law of supply and demand, when the price of an specific good or service decreases, the quantity demanded for that good or service will increase.

For example, if the price for a movie ticket is $10, 100 people will go to the movies. If the movie theater starts a promotion and lowers the price for movie tickets to $6, many more customers will be willing to go the movies. Either because they believe watching a movie in the theater is worth 6$ or more, or because they will now be able to afford going to the theater.  

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3 years ago
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