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
Ad libitum [116K]
3 years ago
7

You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use

the appropriate factor(s) from the tables provided.) Pay $620 per month for 20 months and an additional $12,000 at the end of 20 months. The dealer is charging an annual interest rate of 24%. Make a one-time payment of $16,864, due when you purchase the car. 1-a. Determine how much cash the dealer would charge in option (a). (Round your answer to 2 decimal places.) 1-b. In present value terms, which offer is clearly a better deal
Business
1 answer:
Marysya12 [62]3 years ago
3 0

Answer:

1. In option (a), the dealer would charge $18,213.54.

b. In present value terms, the one-time payment (option (b) is a better deal for the purchaser.

Explanation:

a) Data and Calculations:

Monthly payment for a used car = $620

Payment period = 20 months

Additional payment at the end of 20 months = $12,000

Annual interest rate = 24%

One-time payment for the car purchase = $16,864

From an online financial calculator, the present value of the payments is:

N (# of periods)  20

I/Y (Interest per year)  24

PMT (Periodic Payment)  620

FV (Future Value)  12000

Results

PV = $18,213.54

Sum of all periodic payments = $12,400.00

Total Interest = $6,186.46

You might be interested in
On the worksheet, the Service Revenue account has a credit balance of $20,000 on the Unadjusted Trial Balance. In the Adjustment
Vesnalui [34]

Answer:

$22,000

Explanation:

Data provided

Credit balance = $20,000

Credit amount = $2,000

The computation of the amount for Service Revenue in the Adjusted Trial Balance is shown below:-

The Amount for service revenue = Credit balance + Credit amount

= $20,000 + $2,000

= $22,000

Therefore we have applied the above formula for determining the Amount for service revenue.

6 0
3 years ago
Assuming the Coase theorem applies, an efficient allocation of a resource will result ... A. only if the government acts to inte
Mamont248 [21]

Answer:

B. through negotiations between the parties involved.

Explanation:

  • correct answer is through negotiations between the parties involved because According to Coase theory, priority rights are best defined by negotiation between the parties involved and there is no transaction cost in negotiations.                            
  • The Coase theory states that when transaction costs are low, both parties can negotiate and reach an effective outcome in the presence of an outsider.

6 0
3 years ago
Which of these portfolio items might assist Susan in answering an interviewer who asks, “What is something you did well in schoo
stepan [7]
A.Diploma Certificatw
7 0
3 years ago
Trevorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets
a_sh-v [17]

Answer:

Activity Variance for net operating Income  =   $ 10598 Unfavorable  

Explanation:

Activity Variance for net operating Income  =   $ 10598 Unfavorable      

                                     Actual                           Budgeted

                                   6600 Units                     6600 Units

Revenue                            $194,472                $   185,460                            

       

Direct labor                       $16,145                     $ 16500

Direct materials                 $67,059                  $ 68640

Manufacturing overhead   $45,587                   $ 45620

Selling and

<u>Administrative expenses     $25,363                $ 24980</u>

Total Expenses                    $ 154154                    155740

Net Op. Income                     $ 40,318                 $ 29,720              

 

The activity variance for net operating income =  Actual- budget=    

                                                            = $ 40,318   - $ 29,720

                                                            =   $ 10598 Unfavorable                        

3 0
3 years ago
An investor is in a 30% combined federal plus state tax bracket. If corporate bonds offer 9% yields, what yield must municipals
Yuki888 [10]

Answer:

0.063 or 6.3% (or more)

Explanation:

Given:

Combined Tax Bracket = 30% = 30/100 = 0.30

Yields of corporate Bonds = 9% = 9/100 = 0.09

Yield to Shift Investors to choose municipal bonds = ?

Calculation:

Yield from corporate bond = (After tax yield) x Yield rate of corporate Bonds

                                              = (0.70) x (0.09)

                                              = 0.063 or 6.3%

Working note:

After tax yield = (1 - tax rate )

After tax yield = (1 - 0.30 )

After tax yield = (0.70)

so, they must give 6.3% yield

7 0
3 years ago
Other questions:
  • A farmer sells $25,000 worth of apples to individuals who take them home to eat, $50,000 worth of apples to a company that uses
    6·1 answer
  • Use this tax table to find how much tax you need to pay on a taxable income of $40,000.
    11·1 answer
  • Which one of the following results from the latest decision round is MOST important in providing guidance to company managers in
    15·1 answer
  • Steve and Hillary can mow the lawn in 60 minutes if they work together. If Hillary works three times as fast as Steve, how long
    15·2 answers
  • If the variable overhead efficiency variance is $500 unfavorable and the variable overhead spending variance is $100 favorable,
    9·1 answer
  • The price elasticity of demand for senior citizens purchasing coffee from McDonald's is −5, while non-senior citizens have a pri
    12·1 answer
  • How does globalization affect competition?
    6·1 answer
  • [The following information applies to questions 14-16.]
    12·1 answer
  • Companies and their customers working together to develop products that meet customer needs is known as​ ________.
    9·1 answer
  • with price bundling, it is easy to know what the individual prices were before the products or services were bundled into a pack
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!