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GarryVolchara [31]
2 years ago
9

You want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over 5 years (60 months), and no

minal annual interest rate will be 6%. What will be the monthly loan payment?
Business
1 answer:
koban [17]2 years ago
3 0

Answer:

Monthly installment= $168.77

Explanation:

<em>Loan amortization is a loan repayment arrangement where a loan is repaid using a series of equal installments over the years of the loan. Each installment covers the interest due and a portion of the principal balance </em>

The monthly installment = Loan amount/monthly annuity factor

<em>Annuity factor = (1 - (1+r)^(-n))/r) </em>

r - monthly interest rate, n- number of months

Monthly interest rate = 6%/12= 0.5%

Number of months = 15× 12 = 180

Annuity factor = ( 1-(1.005)^(-180))/0.005

= 118.50

Monthly installment = 20,000/168.771

= $168.77

Answer:

Monthly installment= $168.77

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Recent WTO estimates show that all countries combined exported ________ valued at $19.4 trillion and ________ valued at $5.2 tri
Musya8 [376]

Answer:

hello hello hello hello hello

7 0
2 years ago
Risk acceptance defines the quantity and nature of risk that organizations are willing to accept as they evaluate the trade-offs
NNADVOKAT [17]

Answer:

Tolerance

Explanation:

Risk tolerance: It is defined as level of risk that an organization is willing to take for completing any specific task. Evaluating the risk in the trade off between perfect security and unlimited accessibility as risk of security breach is still there instead of perfect security as there is unlimited accessibility, however, how much risk can be tolerated or accepted need to be evaluated and can be mitigated.

There are different technique been used to minimize the risk factors are:

  • Avoidance.
  • Reduction.
  • Sharing.
  • Retention.
5 0
2 years ago
Slim made a single deposit of $5,000 in an account that pays 7.2% in 2015. What equal-sized annual withdrawals can Slim make fro
evablogger [386]

Answer:

annual withdrawals is  $1,393.87

Explanation:

given data

Amount Deposited = $5,000

Annual Interest Rate = 7.2%

First withdrawal =  2020

last withdrawal = 2025

solution

we consider equal sized annual withdrawals = x

so we can say that Amount Deposited amount will be as

$5,000 = \frac{x}{(1+0.72)^5} + \frac{x}{(1+0.72)^6} + \frac{x}{(1+0.72)^7} + \frac{x}{(1+0.72)^8} + \frac{x}{(1+0.72)^9} + \frac{x}{(1+0.72)^{10}}       ..........1

we take common here \frac{x}{(1+0.72)^{4}}

so

$5,000 = \frac{x}{(1+0.72)^{4}} \times ( \frac{1}{(1+0.72)^1} + \frac{1}{(1+0.72)^2} + \frac{1}{(1+0.72)^3} + \frac{1}{(1+0.72)^4} + \frac{1}{(1+0.72)^5} + \frac{1}{(1+0.72)^{6}} )      

solve it we get

x = $1,393.87  

so that annual withdrawals is  $1,393.87

7 0
2 years ago
What is the mean 2019E EV/Revenue multiple in the Online Direct Sales comps group in 2019?
ddd [48]

Answer:

The question is not clear and complete.

Let me explain how you can calculate Enterprise Value (EV) to Revenue Multiple

Explanation:

A Enterprise Value (EV) to Revenue Multiple is used to value a business by dividing its enterprise value by its annual revenue. The formula to calculate the Enterprise Value (EV) to Revenue Multiple is EV/Revenue

EV = Enterprise Value

EV can be denoted as (Equity Value + All Debt + Preferred Shares) – (Cash and Equivalents)

While Revenue = Total Annual Revenue

This can be calculated when we have a share price, shares outstanding, debt, and cash or its equivalence.

8 0
3 years ago
If mega corp. borrows $9,000 and agrees to pay the lender $10,500 in one year, the annual interest rate on this loan is approxim
kap26 [50]
In simple interest, the interest rate is
i=(10500-9000)/9000=16.67%

In compound interest, compounded monthly,
10500=9000(1+i/12)^12
=>
APR=12(10500/9000)^(1/12)-1
=11.155%
(effective interest is still 16.67%)
5 0
2 years ago
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