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
Sidana [21]
2 years ago
13

Derek decides to buy a new car. The dealership offers him a choice of paying $600.00 per month for 5 years (with the first payme

nt due next month) or paying some amount today. He can borrow money from his bank to buy the car. The bank requires a 5.00% interest rate. What is the most that he would be willing to pay today rather than making the payments
Business
1 answer:
frosja888 [35]2 years ago
3 0

Answer:

PV= $31,794.12

Explanation:

Giving the following information:

Monthly payment= $600

Number of months= 5*12= 60 months

Interest rate= 0.05/12= 0.004167

<u>To calculate the present value of the monthly payments, we need to use the following formula:</u>

PV= A*{(1/i) - 1/[i*(1 + i)^n]}

A= monthly payments

PV= 600*{(1/0.004167) - 1/ [0.004167*(1.004167^60)]}

PV= $31,794.12

You might be interested in
If you have contacted a seller to report a problem with a product and you were ignored, what should you do next?
KatRina [158]
Call back and try to report the problem again.
8 0
2 years ago
The following information applies to the questions displayed below) Serendipity Sound, Inc., manufactures and sells compact disc
OlgaM077 [116]

Answer:

  1. $25.50
  2. 90,000 units
  3. 140,000 units

Explanation:

1. Current contribution margin ratio

= (Selling price - Variable cost)/ Selling price

= (25 - 19.8) / 25

= 0.208

New Direct labor = 5.0 * ( 1 + 8%)

= $5.40

New variable cost = 19.8 + 0.4 = $20.20

To maintain 0.208

0.208 = (Selling price - 20.20) / Selling price

0.208 * Price = Price - 20.20

0.208Price - Price = -20.20

-0.792Price = -20.20

Price = -20.20/-0.792

Price = $25.50

2. Breakeven = Fixed Cost / Contribution Margin

Contribution Margin = Selling price - Variable cost

= 25 - 19.8

= $5.20

= 468,000/5.2

= 90,000 units

3. To earn $260,000;

= (Fixed Cost + 260,000) / Contribution margin

= (468,000 + 260,000) /5.2

= 140,000 units

6 0
3 years ago
According to the rational choice decision-making process, the first step in solving this problem would be:
ser-zykov [4K]

Answer:

The correct answer is: identifying the problem or opportunity.

Explanation:

Identifying the problem or opportunity is the first step in the rational decision-making process. To know which direction the firm is going to take, the main issue must be pointed out so based on the possible solutions the company can provide, the first steps can be taken towards achieving the solution.

4 0
3 years ago
On December 31, 20X9, Pluto Company acquired 100 percent of Saturn Corporation's common stock for $300,000. Balance sheet inform
maw [93]

Answer:

The $60,000 amount of inventory  will be included in the consolidated balance sheet immediately following the acquisition

Explanation:

According to the accounting principles, the inventory is recorded at the cost or fair market value whichever is lower.

The inventory balance which is given in the balance sheet is $75,000

And, its fair market value is $60,000

So, the inventory would be recorded at 60,000

The other items which are given in the question are irrelevant. Therefore, we don't consider them in the computation part. Thus, we ignored them.

Hence, the $60,000 amount of inventory  will be included in the consolidated balance sheet immediately following the acquisition

4 0
3 years ago
Select the correct answer from the drop-down menu.
MissTica

Answer: Macro, External

Explanation:

Macroeconomics effect the entire world, while it scrutinizes the external forces that affect the company.

3 0
2 years ago
Other questions:
  • The monopolist, like the perfect competitor, will maximize profits at the output where marginal revenue equals marginal cost.
    6·1 answer
  • Floyd tells his daughter Glenda that she can have his Harley Davidson when he dies, but he does not add this to his will. a. Thi
    9·1 answer
  • True or false 1 out of 12 jobs in the U.S. is agriculture related
    8·2 answers
  • Suppose that you found out that many of the sales people in your stores around the country are offering poor customer service. H
    11·1 answer
  • Which of the following is NOT true about the Free Application for Federal Student Aid (FAFSA)?
    9·1 answer
  • Gdp most commonly used measurement
    11·1 answer
  • The theory of constraints is a manufacturing strategy that focuses on reducing the influence of bottlenecks on a process. True F
    8·1 answer
  • HOW TO GET A MILLION BELLS IN ANIMAL CROSSING NH PLZ TELL MEE CUZ TOM NOOK WILL KILL MEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
    12·1 answer
  • Luis makes $23. 10 per hour at his job for the first 40 hours he works each week. If he works more than 40 hours, then Luis make
    7·1 answer
  • The two primary competitive levers that managers can use in order to answer the question of how to compete are.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!