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Lubov Fominskaja [6]
3 years ago
10

Lindsay needs to purchase a car. The car she is planning on purchasing costs $8,000 and she has $2,000 that she will be using as

a down payment. She is offered credit terms of 3% APR for a term of 3 years. Please calculate the following:
To purchase the car, what is the amount that Lindsay will need finance? (1 point)
In one year, how much interest will Lindsay pay on this loan? (1 point)
After three years, in order for Lindsay to OWN the car, what will the actual cost of the car be in dollars? (3 points)
(down payment+amount financed+interest=actual cost of car)
Business
1 answer:
Mariana [72]3 years ago
7 0

Answer:

Lindsay will have to take a loan of 6000$, with annual interest after first year of 180$ and actual cost of the car equal to 8180$

Explanation:

Since Lindsay already has 2000$ as a down payment, which is initial up-front payment for purchases of expensive goods, like car or a house, she would need only 6000$ more in form of the loan. Since the annual interest rate is 3%, after one year her annual interest in absolute value would be 6000*0.03= 180$. Therefore, total cost for purchasing of a car is 2000+6000+180=8180$

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It would be on June 3rd. This is the day before the ex-dividend date. The ex-dividend date for stocks is typically set one working day before the record date. If you acquire a stock on its ex-dividend date or after, you will not obtain the next dividend imbursement. As an alternative, the vendor gets the dividend. If you buy earlier than the ex-dividend date, you can get the dividend.
4 0
2 years ago
when the federal government's expenditures for a year are greater than its revenue for that year, the difference is known as wha
Lera25 [3.4K]

Answer:

A budget deficit

Explanation:

A budget deficit arises when the governments spend more than it has collected.  The government 's main source of revenue is taxes and levies it imposes on businesses and individuals. Its expenses include salaries for public employees, social welfare, and expenditures on public goods and infrastructure development projects.

A budget deficit contrasts a budget surplus, which occurs when a government intends to spend less than it has collected. Budget deficits result in government borrowing from either the domestic or foreign markets.  A balanced budget is when the collected revenues match the planned expenditures.

8 0
3 years ago
Savanna Company is considering two capital investment proposals. Relevant data on each project are as follows: Project Red Proje
liberstina [14]

Answer:

(a) Cash payback period:

     Project Red = 5.5 years

     Project blue  = 4.6 years

(b) Net present value for project Red = $19,760

     Net present value for project Blue =$164,580

(c) Annual rate of return:

Project Red =11.36%

Project Blue  =18.75%

(d) Project Blue

Explanation:

Given Data;  

Project Blue Capital investment = $640,000

Project Red Capital investment = $440,000

Project Red  Annual Net income = $ 25,000.

Project Blue Annual Net income = $ 60,000

Annual depreciation Project Red = (440000/8)

                                                       = 55,000

Annual depreciation Project Blue = (640000/8)

                                                       =  80,000

Annual cash inflow project A = $ 80,000

Annual cash inflow project B = $140,000

(a)

Cash payback period = Initial investment/cash flow per period

Project Red = 440000 /80000

                   = 5.5 years

Project blue = 640000/ 140000

                    = 4.6 years

(b)

Project Red  Present value of cash inflows = 80000 ×5.747

                                                                       = $459,760

Project Blue Present value of cash inflows  =140000×5.747

                                                                        = 804580

Net present value for project Red = $459,760 - $440,000

                                                        = $19,760

Net present value for project Blue = 804580 - $640,000  

                                                         =$164,580

(c) Annual rate of return:

Project Red   = $25,000 / ($440000)/2

                       =11.36%

Project Blue =  $60000/(640000/2)

                    =18.75%

(d) Savanna should select Project Blue because it has a higher positive NPV and a higher annual rate of return. AND Project Blue has early cash back period also

6 0
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Sawyer Components manufactures high-cost, customized roller parts for paper mills and is expanding into China because of the opp
saveliy_v [14]

The fact that Sawyer Components have seen opportunities in China and want to expand there reflects<u> global vision. </u>

<h3>What is global vision?</h3>

This refers to the ability of a company to see beyond factors affecting it from its native country.

It involves seeing opportunities, threats, and weaknesses in the global market, and then acting to take advantage of them like Sawyer Components wants to.

Find out more on the importance of vision at brainly.com/question/4436066.

#SPJ1

4 0
1 year ago
An engineering firm measures its output in standard service hours (SSH) per unit, which is a function of the skill levels of its
tatyana61 [14]

Answer:

Instructions are below.

Explanation:

Giving the following information:

The variable cost is $60 per SSH and the fixed cost is $2,000,000 per year. The firm charges $100 for each service per hour. Assume the maximum hours the firm operates (that is the output) is 170,000 per year.

1) To calculate the break-even point, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 2,000,000/ (100 - 60)

Break-even point in units= 50,000 hours

2) %of hours= (50,000/170,000)*100= 29.41%

3) Fixed costs= $1,800,000

Break-even point in units= 1,800,000/40

Break-even point in units= 45,000 hours

The number of units required to cover for fixed costs diminished by 10%.

4) Selling price= $110

Break-even point in units= 2,000,000/(110 - 60)

Break-even point in units= 40,000 hours

The number of units required to cover for fixed costs diminished by 20%.

5) In generals terms, it is easier to increase the selling price compared to decreasing fixed costs. In this case, the best option is to increase the selling price. The effect on income and the break-even analysis is higher than decreasing fixed costs.

3 0
3 years ago
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