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Dominik [7]
3 years ago
12

Mary Smith took a car loan of $25,000 to pay back in 48 monthly installments at an interest rate of 8%. Compute the loan balance

immediately after the 32th payment. Group of answer choices $11,937 $9,233 $12,500 $9,765
Business
1 answer:
Naya [18.7K]3 years ago
5 0

Answer:

$9,233.

Explanation:

The balance of the loan after the 32th payment can be determined after constructing a loan amortization schedule for this car loan. To construct the amortization schedule, we need to first calculate the monthly instalments (PMT) as this is the missing parameter for our time value of money.

I am using a financial calculator here to calculate the monthly instalment :

PV = $25,000

P/YR = 12

I = 8%

N = 48 (years)

FV = $0

PMT = ?

Therefore, the monthly instalment PMT is  $610.32.

But, we need the balance immediately after the 32th payment, so we construct an amortization schedule - now that we have all the parameters.

On a financial calculator enter 1 INPUT 32, SHIFT AMORT.

Pressing the equal sign gives the principle then interest and finally the balance of this loan after the 32th payment. The balance you should get if you follow this procedure carefully is $9,233.

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Which of the following statements is CORRECT?
Leya [2.2K]

Answer: C. The beta coefficient of a stock is normally found by regressing past returns on a stock against past market returns. One could also construct a scatter diagram of returns on the stock versus those on the market, estimate the slope of the line of best fit, and use it as beta. However, this historical beta may differ from the beta that exists in the future.

Explanation:

The beta coefficient is used by an economic entity to measure how volatile an individual stock is when such stock is being compared to the market's systematic risk.

Of the options given in the question, the correct answer is option C which states that "C. The beta coefficient of a stock is normally found by regressing past returns on a stock against past market returns. One could also construct a scatter diagram of returns on the stock versus those on the market, estimate the slope of the line of best fit, and use it as beta. However, this historical beta may differ from the beta that exists in the future"

8 0
3 years ago
Elc inc. is an electronic appliances manufacturer that has many strategic business units (sbus), among which, television and com
Sedbober [7]

Answer:

The answer is multi-divisional structure.

Explanation:

A company employing multi-divisional structure would usually function as a parent company that has many business units under it operating different business sectors. This is clearly the case of Elc Inc., since it both manufactures televisions and computers. The fact that both businesses share the same budget shows that the two business units are still operating in the same company.

4 0
3 years ago
Monetary policy could be procyclical if the Federal Reserve: a) is late recognizing that a recession has begun and conducts expa
gladu [14]

A) is late recognizing that a recession has begun and conducts expansionary monetary policy.

6 0
3 years ago
Which of the following functions of marketing involves sorting products according to their size and quality, helping to reduce t
sladkih [1.3K]

Answer:

b. The standardization and grading function

Explanation:

Based on the information provided within the question it can be said that the function of marketing that does this is the standardization and grading function. This helps the customers with buying and selling of goods by sample or description. In other words by sorting them by a specific size and quality so that customers already understand what it is and do not have to bother with a detailed assessment.

7 0
3 years ago
The direct labor standards for a particular product are 4 hours of direct labor at $12.00 per direct labor-hour = $48.00. During
Firlakuza [10]

Answer:

B) $ 1,614

Explanation:

Given the information

  • Actual:

Production= 3,350 units

Direct labor cost= $159,786

Direct labor hours= 13,450

=> rate per hour = $159,786 / 13,450 = $11.88

  • Standard

4 direct labor-hours for 1 unit

$12.00 per direct labor-hour

Budgeted production : 3,350 + 150 = 3500 units

=> The labor rate variance for the month was:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

= ($12.00 - $11.88 )*13,450

= 1614

We choose B

7 0
3 years ago
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