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lutik1710 [3]
3 years ago
7

The purchase price of a car is $25,000. Mr. Smith makes a down payment of $5000 and borrows the balance from a bank at 6% nomina

l annual interest, compounded monthly for five years. Calculate the nearest value of the required monthly payments to pay off the loan.
Business
1 answer:
lara31 [8.8K]3 years ago
6 0

Answer:

Required monthly payments = $387

Explanation:

Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.

The monthly installment is computed as follows:

Monthly installment= Loan amount/annuity factor

Loan amount; 25,000 - 5000 = 20,000

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

r -monthly rate of interest, n- number of months

r- 6%/12 = 0.5% = 0.005, n = 5 × 12 = 60 <em>(there are 12 months in a year)</em>

Annuity factor = ( 1- (1+0.005)^(-60))/0.005

                       = 51.72556

Monthly installment = Loan amount /annuity factor

                                = 20,000/51.7256

                                 = 386.66

Required monthly payments = $387

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5 0
3 years ago
Adams Company sells a product whose contribution margin is $10 and selling price is $25.
Karolina [17]

Answer:

answer is b) False

Explanation:

given data

contribution margin = $10

selling price = $25

total fixed costs = $500

break-even point  = 100 units

solution

we get here Break even point that is

Break even point = \frac{fix\ cost}{contribution\ margin}   ...........1

Break even point = \frac{500}{10}

Break even point = 50 units

but we have given break-even point is 100 units

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6 0
3 years ago
Can someone please Explain why both the General Minimum Wage rate and the Student’ rate are linear patterns.
victus00 [196]

I dont even get this

4 0
3 years ago
"Shenandoah Skies" is the name of an oil painting by artist Kara Lee. In each of the following cases, determine the amount and c
masya89 [10]

Answer:

A. $6000 ordinary income on sale of a creative asset by the creator of the asset.

B. $4000 ordinary income on the sale of inventory.

C. $35000 capital gain on sale of a capital asset. (which is a non depreciable business personality).

Explanation:

The taxpayer sold a painting to Reller Gallery for $6000. So, the tax payer amount and the character of tax payer gain or loss is as follows:

A. $6000 amount realized minus zero basis is equal to $6000 ordinary income on sale of a creative asset by the creator of the asset.

Reller Gallery sold the painting purchased by from Kara to a regular customer, Lollard Inc. for $10000. So, the tax payer amount and the character of tax payer gain or loss is as follows:

B. $10000 amount realized minus $6000 cost basis is equal to $4000 ordinary income on the sale of inventory.

Lollard Inc., the tax payer, was the regular customer that purchased the painting from the Reller Gallery. Lollard showed the painting in the lobby of its corporate headquarters until it sold "Shenandoah Skies" painting to a collector from Dallas. Where the collector paid $45,000 for the painting. So, the tax payer amount and the character of tax payer gain or loss is as follows:

C. $45000 amount realized minus $10000 cost basis is equal to $35000 capital gain on sale of a capital asset. (which is a non depreciable business personality).

3 0
3 years ago
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alexgriva [62]

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Since Eyan is giving a seminar on environmental conservation efforts in a local factory, the quality that Eyan is using when writing and presenting his seminar will be critical-thinking skills and knowledge of environmental regulations.

Eyan should possess critical thinking skill as he should be able to think clearly and at the same time should also have knowledge of environmental regulations.

7 0
2 years ago
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