P1 returns goods previously purchased on credit from P2.

You owe $6,800 on a car loan that has an interest rate of 6.75 percent and monthly payments of $310. You lost your job and your

solmaris [256]

Answer:

<em>It will take 9 months longer to repay this loan</em>

Explanation:

<u>Financial Loan Payments</u>

Let's assume a loan has been received for a present value PV at an interest rate i during n periods. Being R the amount of each payment, then

$\displaystyle PV=R\cdot \frac{1-(1+i)^{-n}}{i}$

Solving for n we have

$\displaystyle n=-\frac{log\left(1-PV.i/R\right )}{log(1+i)}$

The first agreement of payment has the following data

$PV=6,800$

$i=6.75/(12\cdot 100)=0.005625$

$R=310$

Computing n

$\displaystyle n=-\frac{log\left(1-6,800\cdot 0.005625/310\right )}{log(1+0.005625)}$

$n=23.5\approx 24\ months$

The new agreement changes R to 225, thus

$\displaystyle n=-\frac{log\left(1-6,800\cdot 0.005625/225\right )}{log(1+0.005625)}$

$n=33.2\approx 33\ months$

This means that it will take 9 months longer to repay this loan

8 0

2 years ago

Joe and Rich are both considering investing in a project with the following cash flows. Joe is content earning a 9 percent retur

vampirchik [111]

Answer:

d. both joe and rich

Explanation:

To determine who should accept the project, the net present value should be calculated.

The net present value is the present value of after tax cash flows from an investment less the amount invested.

The net present value can be calculated using a financial calculator

Cash flow in year 0 = -$25,000

Cash flow in year 1 = 13,700

Cash flow in year 2 = 18,400

Rich 's discount rate = 16%

Richs NPV = $484.54

Joe's discount rate = 9%

Joes NPV = $3,055.72

The decision rule with NPV is to invest if NPV is greater than zero

Since NPV is greater than zero for both rich and joe, they should both accept it.

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

5 0

3 years ago

How do contact list differ from an address book

pickupchik [31]

Answer:

they don't really differ, a contact list is justa digital adress book

Explanation:

8 0

3 years ago

7. A decrease in supply will result in which of the following?

Inga [223]

Explanation:

C. Both demand and supply change

8 0

2 years ago

Read 2 more answers

The ability to rapidly increase or decrease production levels, or shift from one product or service to another is known as Multi

viktelen [127]

The ability to rapidly increase or decrease production levels, or shift from one product or service to another is known as capacity flexibility. Thus, the correct answer is C.

<h3>What is a product?</h3>

A product is refers as things or services which are use for sale. This product can both be tangible to use where as services are intangible which one can feel only.

The ability to modify total production capacity at any time by combining dependent and fixed resources is known as Capacity flexibility. All decision-making levels including strategic, tactical, and operational, contribute to make capacity decisions.

The most frequent method for increasing capacity is to add more workers, machinery, and space to the production line.

Therefore, option C capacity flexibility is the appropriate answer.

Learn more about product, here:

brainly.com/question/13117735

#SPJ1

3 0

2 years ago