Ask question

Ask question

All categories

snow_tiger [21]

3 years ago

7

You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $94,000. You negotiate a six-year

loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1,350 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 3.2 percent. What will be the amount of the balloon payment six years from now

1 answer:

natulia [17]3 years ago

4 0

Answer:

Purchase of Tesla Model X Sport Utility Vehicle

The amount of the balloon payment six years from now is:

= $39,322.67.

Explanation:

a) Data and Calculations:

Cost of vehicle = $94,000

Period of loan = 6 years

Terms: No down payment and no monthly payments during the first year.

Monthly payment after the first year = $1,350

Total payments to be made = $104,122.67

The total payments including interest from an online financial calculator:

Payoff: 6 years 5.13 months

You will need to pay $1,350.00 every month for 6 years 5.13 months to payoff the debt.

Monthly Payment $1,350.00

Time Required to Clear Debt 6.43 years

Total of 77.13 Payments $104,122.67

Total Interest $10,122.67

Total monthly payments from second year to fifth year = $64,800 ($1,350 * 48)

Expected balloon payment to cover the remaining principal = $39,322.67 ($1014,122.67 - $64,800)

You might be interested in

Theresa Corporation, which manufactures baskets, is developing direct labor standards. The basic direct labor rate is $21.00

wel

Answer:

Standard rate per direct labor hour is $27.1

Explanation:

Standard rate per direct labor hour includes the hourly pay rate, Payroll taxes and fringe benefits. For Theresa Corporation,

We have given that

Basic direct labor rate is $21.00 per hour

Payroll Taxes is 10% of basic direct labor rate i.e. 10% of $21.00 = $2.10 per hour

Fringe Benefits is $4.00 per hour.

So Standard rate per direct labor hour = $21.00 + $2.10 + $4.00 = $27.1

4 0

3 years ago

Sealed Bidding is appropriate when discussion/negotiations are required to determine price and delivery terms?

denpristay [2]

Answer:

B. False

Explanation:

In a sealed bidding, bidders have no opportunity to discuss/negotiate. They just present an offer adjusted to the terms of the requirer of the good or service that is submitted to bidding.

4 0

3 years ago

Suppose a firm receives $10 for selling one additional unit of its product but that additional unit costs the firm $1 to produce

elena-s [515]

The producer surplus from selling the additional unit of the product given the selling price and the cost of production is $9.

<h3>What is producer surplus?</h3>

Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product. The least price the producer should be willing to collect is equal to the cost of production

Producer surplus = price – cost of proeuction

$10 - $1 = $9

To learn more about producer surplus, please check: brainly.com/question/15282739

6 0

2 years ago

You manage a hotel resort located on the South Beach on the Island of Kauai in

GaryK [48]

Answer:

Classification of Projects

The projects are classified as shown below:

Strategy Project:

Strategy projects supports organizations long term mission. it helps in increasing market share and revenue. Among the given projects, the strategy projects are:

b. build a 4 mile nature hiking trail.

d. Launch a new promotional campaign with Hawaii Airlines.

e. Convert 12 adjacent acres into wildlife preserve.

g. Change hotel brochures to reflect Eco-tourism image.

i. Introduce wireless internet service in cafe and lounge areas.

Operational Projects:

These projects support current business operations. Among the given projects, the operational projects are:

c. Renovate horse bran.

Compliance Projects:

These are those must do projects to function under a particular category. Among the given projects, the compliance projects are:

a. Convert the pool heating system from electrical to solar power.

f. Update all bathrooms in condos that are 10 years old or older.

h. Test and revise disaster response plan.

Not all projects are easy to classify. There are always some things falling under more than one category. Categorizing projects will help us to prioritize the implementation of the same. Compliance projects should be done at any cost. The organization's view will be reflected in the strategy projects. Operational projects can be postponed if financial budget constraint exists but compliance cannot be postponed.

6 0

3 years ago

The common stock of ABC, Inc., has a beta of 1.13 and a standard deviation of 21.4 percent. The market rate of return is 12.7 pe

harina [27]

Answer:

The appropriate answer is "13.82%".

Explanation:

Given:

Risk free rate,

$R_f=4.10$

Beta of stock,

$\beta=1.13$

Market rate,

= $12.7$

Now,

The market risk premium will be:

⇒ $R_p$ = $Market \ rate-Risk \ free \ rate$

= $12.7-4.1$

= $8.60$ (%)

hence,

The cost of equity will be:

⇒ $r=R_f+\beta\times R_p$

$=4.10+1.13\times 8.60$

$=4.10+ 9.718$

$=13.82$ (%)

7 0

3 years ago