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
iris [78.8K]
3 years ago
15

After visiting several automobile dealerships, Richard selects the car he wants. He likes its $10,500 price, but financing throu

gh the dealer is no bargain. He has $2,100 cash for a down payment, so he needs an $8,400 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $8,400 for a period of two years at an add-on interest rate of 10 percent.
a) What is the total interest on Richard’s loan?

b) What is the total cost of the car?

c) What is the monthly payment?

d) What is the annual percentage rate (APR)?
Business
1 answer:
Len [333]3 years ago
7 0

Answer:

a) Total Interest Paid in 24 months is $1680

b) Total Cost of the car is $12180

c) Monthly Payment is $420

d) Annual Percentage Rate  is 10.47%

Explanation:

(a) Loan Amount = $8400

Interest Rate = 10%

Monthly Interest = 8400 x (10%/12)

                            = $70

Total Interest Paid in 24 months = 24 x 70

                                                     = $1680

(b) Total Cost of the car = Loan Amount + Interest Paid + Down payment

                                       = 8400 + 1680 + 2100

                                        = $12180

(c) Monthly Principal Payment = 8400/24

                                                  = $350

Monthly Payment = Monthly Interest Payment + Monthly Principal Payment

                              = 70 + 35

                              = $420

(d) Annual Percentage Rate = (1+ 0.10/12)12 - 1

                                              = 0.1047

                                               = 10.47%

You might be interested in
Rick deposited $3,100 into an account 13 years ago for an emergency fund. Today, that account is worth $5,280. What annual rate
trasher [3.6K]

Answer:

4.18%

Explanation:

The formula for used for this calculation is given as

Future value = Present( Initial) value  (1 + r)ⁿ

Where n = number of years of the investment = 13 years

Future value  (Amount of the investment after 13 years)= $5,280

Present ( Initial) value (Amount of the investment before 13 years) =  $3,100

r = rate of return

The formula for r is derived as:

r = (Future value/ Present (initial) value)¹/ⁿ- 1

r = ($5,280/$3,100)¹/¹³ - 1

r = 1.0418139573 - 1

r = 0.0418139573

r is always in percentage format

r = 0.0418139573 × 100

r= 4.18139573%

Approximately, the rate of return annually for 13 years  = 4.18%

8 0
2 years ago
Potential GDP is:
Eva8 [605]

Answer:

b. maximum amount of output that can be produced given the labor force, capital stock, and technology.

Explanation:

GDP refers to the gross domestic product which reflects the finalized value of the goods and services produced domestically

On the other side, the potential GDP refers to the maximum level of output that can be produced by considering the labor force, capital stock, technology by taking the constant inflation rate

Therefore option b is correct

7 0
3 years ago
Roberta transfers property with a tax basis of $460 and a fair market value of $539 to a corporation in exchange for stock with
mamaluj [8]

Answer:

$539

Explanation:

Based on the information given we were told that he transfer property which had a fair market value of the amount of $539 to a corporation in exchange for stock which means that the amount that will be realized in the exchange for the stock will be the amount of $539.

Therefore the amount realized by Roberta in the exchange will be $539

8 0
3 years ago
Why is it important to prioritize a list of financial goals?
adell [148]
It’s important for your future. So you won’t be some kind of debts. It’s always better to plan rather than doing things last minute.
6 0
3 years ago
Roper Electronics received its bank statement for the month of August with an ending balance of $11,740. Roper determined that c
Georgia [21]

Answer:

<u>Bank Reconciliation Statement</u>

Balance at Bank as per Updated Cash Book     $18,065

Add Unpresented Cheque

check #613                                            $155

check #601                                            $420           $575

Less Lodgements not yet credited                     ($6,900)

Balance as per bank statement                            $11,740

Explanation:

The first step is to update the bank balance in Roper Electronics cash book.

<u>Debit :</u>

Balance as per cash book                     $12,938

Interest                                                        $250

Note Received                                        $5,000

Totals                                                       $18,188

<u>Credit:</u>

Bank Charge - Collection Service               $35

Bank Service Charge                                   $20

Dishonored Cheque                                    $68

Balance as per updated cash book     $18,065

Totals                                                       $18,188

Then the next step is to prepare a bank reconciliation statement.

<u>Bank Reconciliation Statement</u>

Balance at Bank as per Updated Cash Book     $18,065

Add Unpresented Cheque

check #613                                            $155

check #601                                            $420           $575

Less Lodgements not yet credited                     ($6,900)

Balance as per bank statement                            $11,740

6 0
2 years ago
Other questions:
  • A(n)______________________ aligns strategic goals, operations effectiveness, reporting, and compliance objectives. a. operationa
    5·2 answers
  • Which of the following represents a primary task and a dependent task?
    9·2 answers
  • According to the quantity theory:
    9·1 answer
  • Why should investors know the difference between nominal and real interest rates?
    11·1 answer
  • Oil Well Supply offers a 7 percent coupon bond with semiannual payments and a yield to maturity of 7.73 percent. The bonds matur
    14·1 answer
  • Hershey's decides to start using a compostable material in which to wrap their chocolate. Unfortunately, this material begins br
    5·1 answer
  • The totals from the first payroll of the year are shown below. Total Earnings FICA OASDI FICA HI FIT W/H State Tax Union Dues Ne
    11·1 answer
  • Jul. 1 Yang contributed $68,000 cash to the business in exchange for common stock.
    12·1 answer
  • During a time of inflation, what happens to the value of the dollar?
    5·1 answer
  • washington enterprises had net income of $1,000,000, invested $150,000 in fixed assets, paid $50,000 in dividends, and took depr
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!