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natta225 [31]
2 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]2 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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<h3>What is vulnerable subject in research study?</h3>

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The complete question is -

When workers are asked to participate in a research study, vulnerabilities related to the subject's employment may include:

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The Connors Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixe
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As per high low method

Variable cost = Change in cost / Change in hours = (High cost - Low cost) / (High hours - Low hours).

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$24,360             5,800

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