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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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Answer:

Career planning

Explanation:

Career planning is self-assessment and preparation undertaken by an individual who has a decent career path. Career planning phase is a continuous process of discovering oneself, establishing career aspirations, evaluating skills and finding the best career opportunities.

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Which of the following statement is not true about derivative contracts?
8090 [49]

Answer:

a. A long position is a bet that the number is going to fall while a short position is a bet that the number will rise in the future.

Explanation:

The derivative contract is a contract in which the contract is to be done between two or more parties regarding the value i.e. depend upon the financial asset i.e. underlying. It involves the bonds, commodities, etc

So according to the given options, the option a is correct as long position is a bet in which the number is to be decline while on the other hand in the short position the number would increase

4 0
3 years ago
You are analyzing Jillian’s Jewelry (JJ) stock for a possible purchase. JJ just paid a dividend of $1.50 yesterday. You expect t
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Answer:

A. D1 = 1.50*1.06 = 1.59

D2 = 1.59*1.06 = 1.69

D3 = 1.69*1.06 = 1.79

B. PV of D1=(1.50*1.06)/1.13^1=1.41

PV of D2=(1.50*1.06^2)/1.13^2=1.32

PV of D3=(1.50*1.06^3)/1.13^3=1.24

PV of all dividend = (1.50*1.06)/1.13^1 + (1.5*1.06^2)/1.13^2 + (1.5*1.06^3)/1.13^3

PV of all dividend = 1.59/1.13 + 1.6854/1.2769 + 1.786524/1.442897

PV of all dividend = 1.407079646 + 1.319915 + 1.238150748

PV of all dividend = 3.965145814288893

PV of all dividend = 3.97

C. PV = 27.05/(1+13%)^3

PV = 27.05/(1.13)^3

PV = 27.05/1.442897

PV = 18.74701

PV = 18.75

D. The most you should pay for it :

= (1.50*1.06)/1.13^1+(1.5*1.06^2)/1.13^2+(1.5*1.06^3)/1.13^3+27.05/1.13^3

=22.71

E. Value = (1.50*1.06)/(13%-6%)

Value = 1.59 / 7%

Value = 1.59 / 0.07

Value = 22.714286

Value =22.71

F. No, the value is not dependent on the holding period, you can see from above that the value of infinite time period estimated in E equals to the value calculated when there was 3 years holding period.

5 0
3 years ago
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SCORPION-xisa [38]

Answer:

Selling price= $51.48

Explanation:

Giving the following information:

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Direct labor $5

Variable manufacturing overhead $9

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Answer:

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Explanation:

entrepreneurship is just a map in which successful are those just make this web

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