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
aliya0001 [1]
2 years ago
8

Mr. Brown wants to buy a Tesla Model S car, whose price is $100, 848. The dealer offers a loan plan: $30, 000 downpayment, $X at

the end of year 1, year 2, year 3, and year 4. Assume the constant annual interest rate is 25%. (a) What is X
Business
1 answer:
algol [13]2 years ago
6 0

Answer:

X is $30,000

Explanation:

First, we need to calculate the Amount ofLoan

Amount of Loan = Car price - Down payment = $100,848 - $30,000 = $70,848

This is the situation of annuity payment for 4 years at a 25% interest rate with equal annuity payment each year.

Now we will use the following formula to calculate the value of X

PV of Annuity = Annuity payment x ( 1 - ( 1 + interest rate )^-numbers of years ) / Interest rate

Where

PV of Annuity = Amount of Loan = $70,848

Interest rate = 25%

Numbers of years = 4 years

Annuity Payment = X = ?

Placing values in the formula

$70,848 = X x ( 1 - ( 1 + 25% )^-4 ) / 25%

$70,848 = X x 2.3616

X = $70,848 / 2.3616

X = $30,000

You might be interested in
List at least 6 things your credit card company must clearly disclose to consumers.
never [62]

It is important to review the credit card disclosure for information on APRs, Penalties, Grace periods, Minimum financing charges, Calculation methodologies, and Fees.

An explanation of all the fees, charges, interest rates, and conditions that a consumer can encounter when using the credit card is contained in a credit card disclosure. The legislation requires disclosure of this information by organizations that provide credit cards. The disclosures on credit cards offer clear information about costs and charges. They also encourage rivalry. To allow consumers to evaluate credit cards more effectively, it is legally necessary of all credit card companies to give the same price information. They can pick the one that better serves their tastes in terms of price.

The interest rate that a client will pay on outstanding balances is the most obvious example of a cost listed on a credit card disclosure. Basic elements like the monthly payment deadlines will also be covered in the disclosure.

Learn more about Credit Card here:

brainly.com/question/28800758

#SPJ4

8 0
1 year ago
Which loan type allows you borrow up to the cost of attendance, minus other aid you have received?.
nikdorinn [45]

A subsidized loan is such a loan where the borrower is allowed to borrow up to the cost of attendance less any other aids received.

<h3>What is a subsidized loan?</h3>

A type of education or student loan where the amount to be borrowed is determined as per the cost of the student's attendance, which is subtracted from other financial benefits received in this regard, is known as a subsidized loan.

Hence, subsidized loan is explained as above.

Learn more about subsidized loans here:

brainly.com/question/2256061

#SPJ1

4 0
2 years ago
Geothermal corp. just announced good news: its earnings have increased by 20%. most investors had anticipated an increase of 25%
Nataly_w [17]
The answer would be the stock price will decrease. The reason behind this is the original price replicates an expectation or looking forward of a 25% upsurge in the company’s earnings. The actual increase is a dissatisfaction compared to original expectations.
3 0
3 years ago
In a relationalâ database, the three basic operations used to develop useful sets of dataâ are:
Vitek1552 [10]
E is the correct answer
8 0
3 years ago
As a contemporary manager, your employees will perceive that their opinions are more valued if: you provide settings where emplo
erma4kov [3.2K]

Answer:

 you provide settings where employees have the opportunity to converse with all levels of management.

Explanation:

In simple words, employees feel motivated and values when they fell involved in the decisions inside the organisation, as these decisions affects them too.

    Generally, the core decisions in any organisation are taken by top managers but they too are dependent on lower level managers for the data they receive. Hence, a network should be set for employees so they can give their suggestions to  all levels of managers.

6 0
3 years ago
Other questions:
  • HELP 10 POINTS!!!!!!!!!!!! ONE QUESTION!!!!!!!
    10·1 answer
  • Imagine that you have invented a new snack food product and would like to market it to college students. What are some of the ad
    5·1 answer
  • Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The
    7·1 answer
  • What effect do labor unions have on the unemployment rate? A. Labor unions can significantly increase the unemployment rate when
    12·1 answer
  • What is the present value on January 1, 2019, of $30,000 due on January 1, 2023, and discounted at 10% compounded annually? $ 95
    9·1 answer
  • Fox Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,250 2 1,180 3 1,570 4 1,930 a.
    5·1 answer
  • By making minimum payments on a credit card, the consumer can​
    8·2 answers
  • Stephen Hemmerling was a driver for the Happy Cab Co. Hemmerling paid certain fixed expenses and abided by a variety of rules re
    14·1 answer
  • You are asked to study the causal effect of hours spent on employee training​ (measured in hours per worker per​ week) in a manu
    15·1 answer
  • The _____________ represented sweeping changes to the tax code and reframed the computation of employee income tax.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!