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
Murljashka [212]
3 years ago
10

You want to borrow $93,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,850, but no

more. Assuming monthly compounding, what is the highest APR you can afford on a 60-month loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Interest rate %
Business
1 answer:
Vlada [557]3 years ago
4 0

Answer:

The highest affordable APR is 7.192%.

Explanation:

A person wants to borrow $93,000 from local bank to buy a new sailboat.

The maximum affordable monthly payment or EMI is $1,850.

The loan period is 60 months.

Suppose, monthly interest rate = r

93000 = 1850\ \times\ \frac{ \frac{1\ -\ 1}{(1+r)^6^0}}{r}

At r =.6 %

Present value of loan repayment = $92984.94

At r=.5%

Present value of loan repayment = $95692.29

Through the method of interpolation,

r= .5% + ((95692.29 - 93000)/( 95692.29 - 92984.94))*(.6% - .5%)

r=.5994%

Annual interest Rate

= .5994%*12

= 7.192%.

You might be interested in
1. On December 31st, 2012, Bingo Corp. borrowed $50,000 from a bank. Half of the loan was to be repaid in 2013, and the other ha
olga2289 [7]

Answer:

undervalued assets an liabilities by 50,000

Explanation:

The financial statement for the fiscal year ended on December 31th, 2012

will have the following mistake:

Liabilities are undervalued by 50,000

Cash wll be undervalued by 50,000

As the note payable is not recorded neither the cash receipts from the loan.

Because this transaction is missing, we are not doing a correct representation of reality. This account will be undervalued.

4 0
3 years ago
A group of management consultants is studying OGSI Manufacturing and its team management strategy. Once Pete Jazoni's work group
boyakko [2]

Answer:

the Hawthorne effect

Explanation:

The Hawthorne Effect is the theory that states that people are more likely to modify their behavior because they are under study or evaluation and not as a result of response to stimuli.

Therefore, according to the given question, Pete Jazoni's output nearly doubled once it was selected for special attention by experts. This is an example of the Hawthorne effect.

7 0
3 years ago
Jerry has $50,000 in his savings account and the average new car price is $23,000. does jerry have a demand for a new car? quest
OLEGan [10]
The answer is ‘not necessarily. Jerry has the ability to buy a new car, but we don't know if he also has the willingness to buy a new car.’ Because willingness goes hand in hand with this scenario. Many people has the ability to buy things since they have the money for it but unfortunately, the lack the willingness to buy something can affect this scenario. If he lacks willingness, he won't able to buy the new car. The question here is, is he willing to buy the car?
3 0
3 years ago
A price ceiling is the lowest price a seller can charge without losing all of its customers. a legal minimum price below which a
zavuch27 [327]
The answer would be a legal price above which a good/service cannot be sold at.

6 0
3 years ago
The purpose of the ________ of performance appraisal is to keep managers from being excessively lenient and having a disproporti
Kitty [74]

Answer: forced distribution method

Explanation:

JUST DID IT

8 0
3 years ago
Other questions:
  • Which characteristic is important for an effective mission statement? A. It should express the company’s aspirations. B. It shou
    13·2 answers
  • Calculate the GDP of Dinoland using the expenditures approach given the following data: personal consumption expenditures = $10
    13·1 answer
  • Effect of Inventory Errors During the taking of its physical inventory on December 31, 20Y3, Sellers Company incorrectly counted
    7·1 answer
  • Which of the marketing mix elements corresponds to what the buyer gives up in the marketing exchange?
    9·1 answer
  • During the ________ stage of the product life cycle sales reach a peak, profits are declining, and the number of competitors sta
    13·1 answer
  • Rosalie owns 50% of the outstanding stock of Salmon Corporation. In a qualifying stock redemption, Salmon distributes $80,000 to
    13·1 answer
  • . Which one of the following businesses would be the most difficult to get funding for?
    7·1 answer
  • Criminal acts range from relatively minor crimes, such as trespassing or shoplifting, to severe crimes, such as arson or murder.
    7·1 answer
  • Amelie received an email that claimed to be from a Nigerian prince who needed help setting up
    12·1 answer
  • When a domestic country is small relative to world markets, is a price taker, and its consumption and production do not affect t
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!