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
UkoKoshka [18]
3 years ago
14

A commercial bank will loan you $20,000 for four years to buy a car. The loan must be repaid in 48 equal monthly payments. The a

nnual interest rate on the loan is 6.00 percent of the unpaid balance. How large are the monthly payments?
Business
1 answer:
Lisa [10]3 years ago
8 0

Answer:

Monthly payment = $469.701

Explanation:

<em>Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.  </em>

The monthly equal installment is calculated as follows:  

Monthly equal installment= Loan amount/Monthly annuity factor  

Loan amount = 20,000

Monthly annuity factor  =

=( 1-(1+r)^(-n))/r  

r- Monthly interest rate (r)  

= 6/12= 0.5%  

n- Number of months ( n) = 20 × 4 = 48

Annuity factor  

= ( 1- (1.005)^(-48)/0.005= 42.5803

Monthly installment= 20,000 /42.5803  = $469.701

Monthly installment = $469.701

Monthly payment = $469.701

You might be interested in
They really don’t purchase much, but they like the recreation the outing provides. Which type of shopping activity is this? Grou
algol13

Answer:

experiential shopping

Explanation:

Experiential Shopping is done in order to avoid the boredom and get engaged in an activity, basically for moving out of the room and finally having a view and enjoying it. The goods are purchased without any planning, and only because you saw them and you like them.

This is done in order to recreate peace.

This is done by people to create happiness and internal satisfaction. Shopping do not provide happiness to them unlike impulsive shopping, but the mere thought to go out and enjoy do provides them the happiness they intend to have.

7 0
3 years ago
Read 2 more answers
What decision rule should be followed when deciding if a business segment should be eliminated?
dusya [7]
Here is the answer of the given question above. The decision rule that should be followed when deciding if a business segment should be eliminated is this: Segments with revenues which are less than avoidable expenses should be considered for elimination. <span>Unavoidable expense are those expense which will continue to be incurred whether segment is continued or discontinued. Hope this helps.</span>
5 0
2 years ago
Read 2 more answers
Suppose a new recreational neighborhood park would cost​ $20,000, including opportunity​ costs, to construct and maintain. if​ b
oksian1 [2.3K]

The decision to build the park or not would be based solely on the cost – benefit relationship of this project. Since there is no other factor considered in this problem, you only need to see if the benefit of constructing the park would exceed its cost. In this problem, the cost to construct the park is $20,000 while the marginal benefit would be $24,000 ($8,000 x 3 families that can benefit from this project). Therefore, you can say that the benefit has exceeded its cost. As a conclusion, the neighborhood park should be built because it benefits the families living in that area more than its cost.

8 0
2 years ago
Up-Town Express processed 89,233 packages this month. If this is 36.5% less than last month, how many packages did they process
solniwko [45]

Answer:

X=140.524.4≅140,524 Packages

Correct option is C (140,524)

Explanation:

Given Data:

Up-Town Express processed =89,233 packages this month

Less than last month=36.5%=0.365

Required:

Packages did they process last month=?

Solution:

Let say X is the number of Packages they process last month.

Equation from above data:

89233+0.365X=X

89233=X-0.365X

0.635X=89233

X=89233/0.635

X=140.524.4≅140,524 Packages

Correct option is C (140,524)

4 0
3 years ago
When starting a new job, the form you complete to determine how much tax to withhold from your paycheck is called the _______.
maksim [4K]
Letter D. W-4 is the answer to your question.
5 0
3 years ago
Read 2 more answers
Other questions:
  • Market Indicators are employed in-
    10·1 answer
  • I study French so I can talk to my cousin who lives in Paris
    7·1 answer
  • If a project activity experiences positive variation:
    9·1 answer
  • Marion Franklin is the CEO of a local real estate company, Action Realty. The community has seen an increase in population over
    11·1 answer
  • The tiny isolationist nations of Lorland and Zhangia are considering opening their borders to trade with each other. Both nation
    5·1 answer
  • Michael's, Inc., just paid $2.60 to its shareholders as the annual dividend. Simultaneously, the company announced that future d
    11·1 answer
  • Suppose a factory emits pollution into the air during its production process. The demand​ (D) for its output​ (Q) is p​= 2400- Q
    7·1 answer
  • Organizations with low turnover and satisfied employees tend to perform better. On the other side of the coin, organizations hav
    14·1 answer
  • The welding department supplies parts to the final assembly line. Management decides to implement a kanban system and has collec
    6·1 answer
  • What is the United States currency linked to?
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!