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natta225 [31]
3 years ago
11

You want to buy a new sports coupe for $74,400, and the finance office at the dealership has quoted you a loan with an apr of 6.

8 percent for 48 months to buy the car. what will your monthly payments be? (do not round intermediate calculations and round your answer to 2 decimal places,
e.g., 32.16.) monthly payment $ what is the effective annual rate on this loan? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places,
e.g., 32.16.) effective annual rate %
Business
1 answer:
NeX [460]3 years ago
8 0
Monthly payment = $1774.71 
Effective annual rate = 7.02% 
 The equation for a loan payment is
 P = r(PV)/(1-(1+r)^(-n))
 where
 P = Payment per period
 PV = Present value
 r = interest rate per period
 n = number of periods 
 Since the 6.8% interest rate is APR, we need to divide by 12 to get the interest per month. So in the above equation r = 0.068/12 = 0.005666667, the number of periods is 48 and the Present Value is 74400. Let's plug in the numbers and calculate.
 P = r(PV)/(1-(1+r)^(-n))
 P = 0.00566666666666667(74400)/(1-(1+0.00566666666666667)^(-48))
 P = 421.6/(1-(1.00566666666666667)^(-48))
 P = 421.6/(1-0.762439412691304)
 P = 421.6/0.237560587308696
 P = 1774.70516
 So the month payment rounded to 2 decimal places is $1774.71 
 The effective interest rate is
 ER = (1 + r/12)^12 - 1 
 Let's plug in the numbers and calculate.
 ER = (1 + 0.068/12)^12 - 1
 ER = (1 + 0.00566666666666667)^12 - 1
 ER = (1.00566666666666667)^12 - 1
 ER = 1.07015988024972 - 1
 ER = 0.07015988024972 = 7.015988024972% 
 So after rounding, the effective interest rate is 7.02%
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Explanation:

A manager who asks questions with a sincere interest in the answers is engaging in dialogue similar to a “regular” back-and-forth conversation, and this authenticity builds trust and promotes the open exchange of ideas. Another key benefit is that having employees think about questions, rather than just telling them information or telling them what to do, engages their critical thinking skills—which are key skills for organizational success. Also, when employees are asked how to solve problems, they are likely to have more buy-in to the solution they arrive at than to a solution imposed on them. Many people are motivated by feeling as though their ideas make a positive difference.

Lower-level employees are often the experts in operational details and often have more direct contact with customers than higher-level managers, so they have tremendous expertise that can and should be tapped. Asking employees questions begins an organizational dialogue that can lead to a decentralized communication network, in which employees freely exchange ideas with one another and not just with their manager.

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Answer:

The answer is below

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