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dimulka [17.4K]
3 years ago
14

Teagan wants to buy a new refrigerator. The refrigerator costs $1650. Teagan decides to finance the refrigerator for 24 months a

t an APR of 12.5%. Determine Teagan's monthly payment. Round your answer to the nearest cent, if necessary. Formulas

Business
1 answer:
sukhopar [10]3 years ago
7 0

Answer:

$78.06

Explanation:

For computing the monthly payment we need to apply the PMT formula i.e. to be shown in the attachment below:

Given that,  

Present value = $1,650

Future value or Face value = $0

RATE = 12.5% ÷ 12 = 1.0416%

NPER = 24 months

The formula is shown below:  

= PMT(RATE;NPER;-PV;FV;type)  

The present value come in negative  

So, after applying the above formula, the monthly payment is $78.06

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Answer:

$1,102,820

Explanation:

 The computation of the net present value is shown below:

= Present value of yearly cash inflows - initial investment

where,

Present value of yearly cash inflows is

= Annual year cash inflows × PVIFA factor

= $300,000 × 2.9906

= $897,180

And, the initial investment is

= $1,500,000 + $500,000

= $2,000,000

So the net present value is

= $897,180 - $2,000,000

= $1,102,820

4 0
3 years ago
A faxed acceptance of a contract becomes effective instantaneously when the transmission lines are open and both sending and rec
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3 years ago
A customer who shares his or her views of a firm's product and gets attention from other customers who respect these views is re
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4 0
2 years ago
4. Tom Busby owes $20,000 now. A lender will carry the debt for four more years at 8 percent interest. That is, in this particul
bezimeni [28]

Answer:

Tom Busby

His annual payment will be:

= $4,091.64

Explanation:

a) Data:

Loan = $20,000

Interest on loan for 4 years = 8% per annum

Amount of loan after 4 years = $27,200 ($20,000 * 1.360)

Payment period = 12 years

Interest rate during payment period = 11%

b) From online finance calculator:

You will need to pay $4,091 every year for 12 years to payoff the debt at 11% interest.

Monthly Payment $340.97

Annual Payment  $4,091.64

Time Required to Clear Debt 12.00 years

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Total Interest $21,899.25

8 0
3 years ago
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