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
bija089 [108]
3 years ago
7

You want to buy a new car, but you can make an initial payment of only $2,400 and can afford monthly payments of at most $500. a

. If the APR on auto loans is 12% and you finance the purchase over 48 months, what is the maximum price you can pay for the car?
Business
1 answer:
dlinn [17]3 years ago
7 0

Answer:

Ans. The maximum price you can pay for the car is $21,387

Explanation:

Hi, to find out what is the maximum price that you can pay, first we have to convert APR rate to an effective monthly rate, that is because you will make the payments in an monthly basis.

Therefore, the effective monthly rate of the credit is 12%/12 =1% effective monthly.

Now, let´s find out the maximum price of the car.

CarPrice=\frac{A((1+r)^{n}-1) }{r(1+r)^{n} } +DownPayment

Where: A is the amount of money that you can pay every month; r is 1% effective rate; n is the periods of periodic payment.

So, everything should look like this:

CarPrice=\frac{500((1+0.01)^{48}-1) }{0.01(1+0.01)^{48} } +2,400= 21,387

So, with a down payment of $2,400 and being able to pay $500 per month, the car that you can buy cannot have a price higher than $21,397.

Best of luck

You might be interested in
Match the following statements to the appropriate terms.
steposvetlana [31]

Answer:

Production Cost Report;Cost Reconciliation schedule,Equivalent units of Production;Unit Production Costs;Physical Units

Explanation:

Production Cost Report:A summary of both production quantity and cost data for a production department.

Cost Reconciliation schedule:Shows that the total costs accounted for equal the total costs to be accounted for.

Equivalent units of Production:Work done during a period expressed in fully completed units.

Unit Production Costs: Costs expressed in terms of equivalent units of production.

Physical Units:Actual units to be accounted for during a period, irrespective of any work performed.

Total Units Accounted for:Units transferred out during the period plus units in ending work in process.

Total manufacturing cost per unit:Unit materials costs plus unit conversion costs.

Units Transferred out:Total units accounted for minus units in ending work in process.

7 0
3 years ago
An attractive industry is one that is characterized by high entry barriers, suppliers and buyers with strong bargaining power, l
lord [1]

Answer:

False.

Explanation:

An attractive industry are not one that is characterized by high entry barriers, suppliers and buyers with strong bargaining power, low threats from substitute products, and low rivalry among firms.

An industry is defined by a group of firm that produce good and service, which are close subtitute and bargaining power of supplier are not considered as entry barrier to a firm in the open market. Industry with high fixed cost can pose high degree of rivalry among firm.

5 0
3 years ago
Which correlation coefficient would you use to look at the correlation between gender and time spent on the phone talking to you
Zolol [24]

Answer:

Answer C

Explanation:

If one of the variables is measured on dichotomous nominal scale, such as gender and other is measured on interval or ratio scale, than we use point biserial correlation coefficient. It will measure our initial hypothesis that there is a connection between the time spent on the phone, talking to your mother with gender. Later, if we would want to conclude how strong is this connection, we would use regression analysis.

8 0
3 years ago
Read 2 more answers
Ben learns that the company was going to be laying off several employees over the next several months. He knew that the rumor mi
sleet_krkn [62]

Answer:

D. Call an all staff meeting and give everyone the news at once.

Explanation:

Instead of letting the rumors spread throughout the company, what Ben is supposed to do is have a meeting with his entire staff and let all of them know at once what's going on. This way, he will be clear and direct and won't allow for gossip to spread throughout his company and he himself will address the issue head-on. This way he won't leave room for misinterpretation as he will explain what is going to happen.

5 0
3 years ago
The united states has more of what per employee than any other industrial nation?
Sav [38]

Managers, this is symbolic of how business is run in U.S. culture.

4 0
3 years ago
Read 2 more answers
Other questions:
  • Kelsey wants to know what the main purpose of the visuals in the committee's report will be. what will you tell him?
    13·1 answer
  • In a business letter the first thing you key usually is
    7·1 answer
  • In the following example, the proposed debt issue would raise $4,000,000; the interest rate would be 10%. In addition, the EBIT
    7·1 answer
  • Assignments
    14·2 answers
  • Scenario D. Jimena works for a small company that makes nut butters from ingredients like cashews and macadamia nuts, and jams f
    13·1 answer
  • What Is technical report
    10·2 answers
  • At December 31, 2021 and 2020, Miley Corp. had 180000 shares of common stock and 12000 shares of 6%, $100 par value cumulative p
    13·2 answers
  • Estimating Doubtful Accounts
    12·1 answer
  • Suppose Cho comes into a large sum of money and decides to lend it out to
    5·1 answer
  • Failure to prepare an adjusting entry at the end of a period to record an accrued revenue would cause Group of answer choices ne
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!