Select all that apply.

You just purchased a brand new BMW 7-series for $97,600 using a dealer loan at an interest rate of 6.75 percent and zero down pa

Ivenika [448]

To calculate the loan balance after making the third payment, we use the future value concept, which shows the balance as $61,153.54.

<h3>What is the future value concept?</h3>

The future value concept describes the idea that the present value of cash flows today are not worth the same as their future value because of the time value of money.

The future value can be computed using the following future value formula:

FV = PV(1+r)^{n}

FV = future value

PV = present value

r = annual interest rate

{n} = number of periods interest held

Alternatively, we can use an online finance calculator to determine the future value of the loan after the third payment as follows:

<h3>Data and Calculations:</h3>

N (# of periods) = 7 years

I/Y (Interest per year) = $6.75

PV (Present Value) = $97,600

FV (Future Value) = $0

<u>Results:</u>

Annual Payment = $16,817.29

Sum of all periodic payments = $117,721.04 ($16,817.29 x 7)

Total Interest = $20,121.04 ($117,721.04 - $97,600)

Balance after the third payment = $61,153.54

<h3>Schedule of Payment:</h3>

Period PV PMT Interest FV

1 $97,600.00 $16,817.29 $5,452.83 $86,235.54

2 $86,235.54 $16,817.29 $4,685.73 $74,103.98

3 $74,103.98 $16,817.29 $3,866.85 $61,153.54

4 $61,153.54 $16,817.29 $2,992.70 $47,328.95

5 $47,328.95 $16,817.29 $2,059.54 $32,571.19

6 $32,571.19 $16,817.29 $1,063.39 $16,817.29

7 $16,817.29 $16,817.29 $0.00 $0.00

Thus, the loan balance after making the third payment is $61,153.54.

Learn more about determining the loan balance at brainly.com/question/22846480

8 0

3 years ago

Suppose the accompanying table contains data on how many veggie delite sandwiches subway is willing to sell each day at two diff

erastovalidia [21]

The daily price elasticity of supply is 0.1.

<h3>What is the price elasticity of supply?</h3>

Price elasticity of supply measures the responsiveness of quantity supplied to changes in price of the good.

Price elasticity of supply = percentage change in quantity supplied / percentage change in price

Percentage change in quantity supplied = (210,000 / 200,000) - 1 = 5%

Percentage change in price = ($7.50 / $5) - 1 = 50%

Price elasticity of supply = 5%/50% = 0.1

Please find attached the required table. To learn more about price elasticity, please check: brainly.com/question/18850846

5 0

2 years ago

In what way is becoming a global organization advantageous to a company? managers are presented with fewer challenges in the glo

andrey2020 [161]

Becoming a global organization, means that more for a company many more shares can be issued and bought hence large sums of capital can be raised.Not to mention the increased market share .

4 0

3 years ago

Former GVO marketing director, David Lieberman, tells a story about a new product idea proposed by a creative person. The idea w

WITCHER [35]

Answer: A - vested interests in the status quo

Explanation: Vested interests in the status quo is when people derive their income, job, status or power from something they have an interest in.

Even if the situation causes obvious harm to people or the environment, they work to keep the status quo for economic reasons. This causes a conflict of interest between what is good for the individual in the short term and what is good for humanity and the planet in the long term.

Vested interest structures impede and suppress innovations that would benefit society as a whole. The most practical solution is to implement a guaranteed livable income which would immediately reduce the impact and number of vested interests, and would free humanity to evolve and save the environment before it is too late.

5 0

3 years ago

A month ago, you bought a one-year bond with a value of $100 that pays a fixed interest rate of 5 percent per year. The interest

My name is Ann [436]

Answer:

less desirable to other investors

Explanation:

<u>Given</u>: Current fixed coupon rate 5%

Market rate of interest 5%

New Market Rate of Interest 6%

Value of a bond is inversely related to economy interest rate or the yield to maturity (YTM). Value of a bond is expressed by the following equation:

$B_{0}\ = \frac{C}{(1\ +\ YTM)^{1} } \ +\ \frac{C}{(1\ +\ YTM)^{2} } \ +....+\ \frac{C}{(1\ +\ YTM)^{n} }\ +\ \frac{RV}{(1\ +\ YTM)^{n} }$

wherein, C = Coupon rate of interest

YTM = Market Rate of Interest or interest rate in the economy or investor's expectation

n= Years to maturity

RV = Redemption value

In the given case, C = YTM i.e par value bond. When ytm rises to 6%, the value of the bond shall fall making such a bond less attractive since it represents lower coupon payments than investor expectations.

Thus, now the bond would be less desirable to other investors.

3 0

3 years ago