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larisa [96]
3 years ago
13

You want to borrow $91,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,750, but no

more. Assuming monthly compounding, what is the highest rate you can afford on a 60-month APR loan
Business
1 answer:
mel-nik [20]3 years ago
3 0

Answer:

5.784%

Explanation:

PV = $91000

PMT = -$1750

N = 60

FV = $0

<em>Using the financial calculator to solve for I/Y</em>

Interest yield = CPT I/Y(91000, -1750, 60, 0)

Interest yield = 0.00482

Interest yield = 0.482%

Highest rate APR = 0.482%*12

Highest rate APR = 5.784%

So, assuming monthly compounding, the highest rate i can afford on a 60-month APR loan is 5.784%.

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It is estimated that a certain piece of equipment can save ​$ per year in labor and materials costs. The equipment has an expect
Delvig [45]

Answer:

The amount that could be justified now for the purchase of this piece of​ equipment is $73,747.41.

Explanation:

Note: This question is not complete as all the data in it are omitted. A complete question is therefore provided before answering the question as follows:

It is estimated that a certain piece of equipment can save $22,000 per year in labor and materials cost. The equipment has an expected life of five years and no market value. If the company must earn a 15% annual return on such investments, how much could be justified now for the purchase of this piece of equipment?

The explanation to the answer is now given as follows:

To calculate this, the formula for calculating the present value of an ordinary annuity is used as follows:

PV = P * [{1 - [1 / (1 + r)]^n} / r] …………………………………. (1)

Where;

PV = Present value of the amount to justify the equipment purchase = ?

P = yearly savings in labor and materials costs = $22,000

r = annual return rate = 15% = 0.15

n = Equipment has an expected life = 5

Substitute the values into equation (1) to have:

PV = $22,000 * [{1 - [1 / (1 + 0.15)]^5} / 0.15]

PV = $22,000 * [{1 - [1 / 1.15]^5} / 0.15]

PV = $22,000 * [{1 - 0.869565217391304^5} / 0.15]

PV = $22,000 * [{1 - 0.497176735298289} / 0.15]

PV = $22,000 * [0.502823264701711 / 0.15]

PV = $22,000 * 3.35215509801141

PV = $73,747.41

Therefore, the amount that could be justified now for the purchase of this piece of​ equipment is $73,747.41.

4 0
3 years ago
Whats a service and then what's the difference between a product a service
skelet666 [1.2K]

Answer:A product is a tangible item that is put on the market for acquisition, attention, or consumption, while a service is an intangible item, which arises from the output of one or more individuals. ... In most cases services are intangible, but products are not always tangible. difference between them is products are tangible objects that can be seen, felt and can be moved, whereas, services are intangible and cannot be moved. ... Key Features of a Product. The main character of a product is that it is a physical item that is tangible.

hope this helps have a nice day❤️

Explanation:

3 0
3 years ago
When interest rates fall a. firms want to borrow more for new plants and equipment and households want to borrow less for homebu
siniylev [52]

Answer: Option (c) is correct.

Explanation:

When interest rates fall then firms want to borrow more for new plants and equipment and households want to borrow more for home building.

If there is a fall in the interest rate in an economy this will make the loans cheaper.

So, every individual wants to grab this opportunity by taking cheaper loans for various purposes such as home building, buying new plants  and equipment, etc.

Hence, firms take an advantage of the lower interest rate by making investment in plants, equipment and machinery.

Whereas households also want to borrow from banks at lower interest rates for building their home. Because it will become cheaper for them to take loan at the ongoing lower interest rate.

3 0
3 years ago
Emma is a recent college graduate who is unmarried and has no children. Which of the following benefits would be of least import
natali 33 [55]

Answer:

C. Life insurance

4 0
3 years ago
Proper marketing objectives have required elements to make them effective. Which of the following is the best example of how a m
Alinara [238K]

Answer:

the answer is c) To increase awareness by 20% in the next year

Explanation:

The objectives in the business and companies in the world, in this case marketing need to have a quantifiable goal and  estimated time of duration, in this case the option a)  doesn't have a number that measure the percentage of the market share, and in the option b) doesn't have an estimated time for example one year or  10 months. Due that the option c) accomplish with the two conditions the answer is c)

3 0
3 years ago
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