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larisa [96]
3 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]3 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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3 0
3 years ago
Matt's Machine Company has borrowed $10 million for four months at 5.5% APR, using inventory stored in a field warehouse as coll
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Answer:

The Matt's EAR is 7.24%

Explanation:

The money borrowed by the company (L) = $10 million

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Now we have to calculate the Matt’s EAR.

Warehouse fees =0.5%

So Fees F= 0.5% × L = 0.5% × $10 = $0.05 millions

Therefore, the Net amount we get N = L – F = 10 - 0.5 = $9.95 millions

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9.95*(1+r)^4 = 10*(1+0.46%)^4

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8 0
4 years ago
Jennifer purchased a prepaid card for transit fares and highway tolls. what kind of card did she purchase?
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4 0
3 years ago
Due to a downturn the wage of entry level workers has declined by 10 per cent, as a
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Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

Cross price elasticity = 15% / 10 = 1.5

Complement goods are goods or resources that are used together. As a result of the decline in wages, senior workers would be laid off. This means that senior workers and entry level workers work together.

<h3>What is the effect on the demand curve if the wages of entry level workers increase?</h3>

If the wage of the entry level workers increase, the demand for senior workers wouuld increase. This would lead to a shift to the right of the demand curve for senior workers.

To learn more about cross price elasticity, please check: brainly.com/question/26054575

8 0
3 years ago
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;l'l;';l/

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