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larisa [96]
2 years ago
9

Olivia is willing to pay $185 a month for four years for a car payment. if the interest rate is 4.9 percent, compounded monthly,

and she has a cash down payment of $2,500, what price car can she afford to purchase?
Business
1 answer:
Grace [21]2 years ago
4 0
Let x = the price of the car that Olivia can afford.

Down payment = $2,500
Remaining amount to be financed is P = x - 2500.

Total payments should equal the monthly payments.
The total payment over 4 years (48 months) is
A  = $185*48 = $8,880

The rate is r = 4.9% = 0.049.
The compounding interval is n = 12.
The time is t = 4  years.
The amount financed is P = $(x - 2500).
Therefore
(x - 2500)(1 + 0.049/12)⁴⁸ = 8880
1.216(x - 2500) = 8880
x - 2500 = 7302.63
x = 9802.63
Olivia can afford a car priced at $9,802.63.

Answer: $9,802.63

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You have $7,600 to deposit. Regency Bank offers 12 percent per year compounded monthly (1.0 percent per month), while King Bank
Goryan [66]

Answer:

Regency Bank : $51,347.27

King Bank : $46,590.99

Explanation:

The formula for calculating future value:

FV = P (1 + r)^mn

FV = Future value  

P = Present value  

R = interest rate  

N = number of years  

m = number of compounding

Regency Bank : $7,600 x (1.01)^(16 x 12) = $51,347.27

King Bank : $7600 x 1.12^16 = $46,590.99

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The <span>money an investor receives above and beyond the money initially invested is called C. return.
Saving has to do with saving your money. Liquidity is the ability to pay your bills. Investment is when you invest your money into something, and eventually get it back, if your investment pays off.
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AnnyKZ [126]

The law of increasing opportunity costs is reflected in a production possibilities curve that is concave to the origin.

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a) Distinguish between the use of Franchising and Joint Venture as modes of entry into other countries by global businesses.

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b) What are the respective advantages and disadvantages of both strategies?

Franchising can be a quicker way to expand into foreign markets. The flexibility of the method, and the lower capital requirements are the reason why. This can be seen in the success that American fast-food brands have had using this method to expand in global markets.

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Katarina [22]

A type of insurance that protects workers from loss wages after an industrial accident that happened on the job is called worker compensation.

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To learn more about worker compensation, refer: brainly.com/question/27993713

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