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kicyunya [14]
2 years ago
12

Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different from those pre

sented here. For long-term loans, the differences may be pronounced. Assume that you take out a $2000 loan for 30 months at 9% APR. How much of the first month's payment is interest
Business
1 answer:
zloy xaker [14]2 years ago
5 0

Answer:

the  first month payment of interest is $74.70

Explanation:

The computation of the first month payment of interest is shown below

Given that

PV = $2,000

NPER = 30

RATE = 9% ÷ 12 = 0.75%

FV = $0

The formula is given below:

= -PMT(RATE;NPER;PV;FV;TYPE)

After applying the above formula, the monthly interest payment is $74.70

hence, the  first month payment of interest is $74.70

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April runs a small shop where she provides a service. She is able to process an average of 11 customers per hour. An average of
professor190 [17]

Answer:

5. Po= 0.36

6. Pn = 0.04

7. 0.16

8. 1.11

9. 1.75

10. 9.9

Explanation:

5. Computation for the probability that April will not be working with a customer

Using this formula

Po=1-(Average number of arrival per hour/Average number of customer served per hour)

Let plug in the formula

Po= 1-(7/11 )

Po=1-0.64

Po= 0.36

Therefore the probability that April will not be working with a customer will be 0.36

6. Calculation for the probability of 5 customers in the system

Using this formula

Pn= (Average number of arrival per hour/Average number of customer served per hour)* Po

Let plug in the formula

Pn= (7/11)^5* 0.36

Pn=0.104358*0.36

Pn=0.037

Pn = 0.04 (Approximately)

Therefore the probability of 5 customers in the system will be 0.04

7. Calculation for the average time a customer spends waiting in line

Time spend Waiting in line=7^2/11(11 – 7) /7

Time spend Waiting in line=(49/44)/7

Time spend Waiting in line = 1.11/7

Time spend Waiting in line= 0.16

Therefore the average time a customer spends waiting in line will be 0.16

8. Calculation for the average number of customers waiting in line

Customers waiting in line = 7^2/11(11 – 7)

Customers waiting in line=49/44

Customers waiting in line= 1.11

Therefore the average number of customers waiting in line will be 1.11

9. Calculation for the average number of customers in the system

Average customers in the system= 1.11 +(7/11)

Average customers in the system= 1.11 +0.64

Average customers in the system = 1.75

Therefore the average number of customers in the system will be 1.75

10. Calculation for the arrival rate in order for April to stay that busy

Arrival rate = 0.9 * 11

Arrival rate = 9.9

Therefore the arrival rate in order for April to stay that busy will be 9.9

4 0
3 years ago
Is the following statement True, False or Uncertain? Explain your answer. "In the long run, firms will exit the market if price
Ratling [72]

Answer:

True

Explanation:

The purpose of any business is to make profit, which is from the difference between revenues (price of product multiplied number of product sold) with the cost of goods sold (average total cost multiplied number of product sold).

In short, the profit = (price - average total cost) x number of product sold.

Normally the price must be above/ higher than cost, so that the firm can have profit. Sometime the price in the market go down, so the firm have have to adjust down its price also to maintain customer's purchases.

Once its price is down, but the firm's average total cost is still same as previous, the firm can not have profit as previously. The firm may bear this situation as long as its capital capacity allowed, but will not be too long.

4 0
3 years ago
Read 2 more answers
A company purchases a remote building site for computer operations. The building will be suitable for operations after some expe
vaieri [72.5K]

Answer:

True Statements are:

B, C, D

Explanation:

All the capital cost incurred for an asset acquisition is added to the cost of capital asset.

The cost of capital asset here will include the following,

Replacement of wiring will not form part of cost of building, as is associated with fittings and computers, so either it will be clubbed in furniture and fittings or computers,

Replacement of roof is a part of building and shall be added to cost of building.

Painting, plumbing etc: will not form part of cost of building, as will be added to revenue expenditure and not the capital expenditure.

Thus with the above clarification of nature of expense, Statement B, C, and D are true.

3 0
3 years ago
Bundle A is strictly preferred to bundle B, and bundle B is strictly preferred to bundle C. If the utility associated with B is
Nadya [2.5K]

Answer: (63, 50, 44)

Explanation:

Utility is the satisfaction that we derive as consumers when we consume or use a certain product.

Since Bundle A is strictly preferred to bundle B, and bundle B is strictly preferred to bundle C, it means that the value of Bundle A must be more than B and C while that of Bundle B must be more than bundle C.

Therefore, the correct option is B which is (63, 50, 44)

3 0
2 years ago
For each of the following scenarios, determine whether the situation described can be attributed to the real-balances effect, th
aksik [14]

Answer:

A)Interest-rate effect

B)Real-balances effect

Explanation:

✓The interest rate effect can be regarded as change in borrowing as well as spending behaviors as a consequence or result of adjustment of interest rate. As a general rule, interest are been set by central bank of the nation, then consumer banks will then extend similar interest rates across their customers. For instance

As a result of an increase in the price level, the cost of borrowing increases, which causes people to buy fewer cars.

✓ In economics, real balance effect can be regarded as "Pigou effect" which can be regarded as stimulation of output as well as employment which is been caused as a result of increased consumption through a rise in real balances of wealth, especially during time of deflation. Instance of this is

When the price level decreases, restaurants become busier as more people purchase restaurant meals.

3 0
3 years ago
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