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tekilochka [14]
3 years ago
12

Douglas can afford 240$ a month for five years for a car loan. If the APR is 8.5%, how much can he afford to borrow to purchase

a car if he has 10,000 as a down payment?
Business
1 answer:
SVETLANKA909090 [29]3 years ago
8 0

Answer:

Douglas can afford 21697.88 to borrow to purchase a car.

Explanation:

As the formula for calculating present value is given as:

PV = PMT * ( (1-(1+r)^-n) / r )

As Douglas can afford 240$ a month for five years for a car loan so

it means that payment = 240 $

As the APR is 8.5% which means after dividing by 12 the rate per month = 8.5%/12

Total number of Months = 5*12

Total number of Months = 60

Putting these values into the above formula, we get

PV = PMT * ( (1-(1+r)^-n) / r )

PV = 240 * ( (1-(1+8.5%/12)^-60) / (8.5%/12) )

PV = 11697.88

As the down payment = 10,000 so the total value of car

= 11697.88+10000

= 21697.88

Douglas can afford 21697.88 to borrow to purchase a car.

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Answer and explanation:

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True or false: zappos sells all four categories of consumer products (convenience, shopping, specialty, unsought)
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6 0
3 years ago
Read 2 more answers
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Amiraneli [1.4K]

Answer:

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Explanation:

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= $140,000 + $350,000 = $490,000

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= $490,000 ÷ 10,000 = $49

Total variable Cost Per Unit = Fixed Cost Per Unit + Variable Cost Per Unit

= $49 + $240 = $289

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= 10,000 × $289 = $2,890,000

b). Desired Profit = Invested Assets × 30%

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7 0
3 years ago
1. A useful characteristic of money is that money
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Answer:

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The value of goods and services is expressed in monetary terms.  Buyers and seller, therefore, can determine how much is needed to transact.

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Property tax rate=$58 million/$1,450 million

Property tax rate=4%

8 0
3 years ago
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