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Roman55 [17]
4 years ago
14

Calculating the Total Cost of a Purchase, the Monthly Payment, and an APR. After visiting several automobile dealerships, Richar

d selects the used car he wants. He likes its $10,000 price, but financing through the dealer is no bargain. He has $2,000 cash for a down payment, so he needs an $8,000 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $8,000 for a period of four years at an add-on interest rate of 11 percent. What is the total interest on Richard’s loan? What is the total cost of the car? What is the monthly payment? What is the annual percentage rate (APR)? (Obj. 2)

Business
1 answer:
Helga [31]4 years ago
7 0

Answer:

Explanation:

The picture attached shows the explanation

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Please help!!!!!!!
lina2011 [118]

Answer: B

Explanation:

6 0
3 years ago
Goals of the Firm. Fill in the blanks in the following passage by choosing the most appropriate term from the following list (so
Trava [24]

Answer:

Market value; real assets; shareholders; dividend; financial assets; real assets; expected return; higher; opportunity cost of capital.

Explanation:

Shareholders want managers to maximize the market value of their investments. The firm faces a trade-off. Either it can invest its cash in real assets or it can give the cash back to shareholders in the form of a dividend and they can invest it in financial assets. Shareholders want the company to invest in real assets only if the expected return is higher than they could earn for themselves. The return that shareholders could earn for themselves is therefore the opportunity cost of capital for the firm.

A shareholder can be defined as an individual or organization who has a stock in a particular company through the purchase of such stocks.

Generally, all shareholders are interested in making profits and increasing the market value of their investments.

3 0
3 years ago
jim root company operates four bowling alleys. the business just received the ​, ​, bank statement from city national​ bank, and
Damm [24]

Listed on the statement are an EFT rent collection of $440, a service charge of $7, NSF checks totaling $50, and a $23 charge for printed checks.

<h3>What is statement?</h3>

Frequently used in the field of project management is a statement of work (SOW). The work demand for a project is described in narrative form. For a vendor offering services to the client, it specifies project-specific tasks, products, and deadlines. Standard regulatory and governance terms and conditions, together with specific criteria and price, are usually included in the SOW. A master service agreement or request for proposals frequently have it as an essential annex (RFP).

For the hardware or software solutions outlined in the request for proposals, numerous statement of work document template formats and styles have been developed. Many businesses develop their own specialized or generalist SOWs that are specifically tailored to meet the requests and proposals they typically receive.

To learn more about statement from the given link:

brainly.com/question/25938417

#SPJ4

6 0
2 years ago
Grand River Corporation reported taxable income of $600,000 in year 1 and paid federal income taxes of $155,000. Not included in
Paul [167]

Answer:

$444,000

Explanation:

current earnings and profits = (taxable income - income taxes) - meals expense + tax exempt income = ($600,000 - $155,000) - $3,000 + $2,000 = $444,000

Disallowed expenses are expenses made by an individual or company that the IRS doesn't allow to be deducted, e.g. meals. Tax exempt income is income that is not taxed by the IRS, e.g. DRD includes at least 70% of dividends received.

Deferred gains or unearned revenues are considered a liability and are not included in the income statement.

7 0
3 years ago
Brutus Inc is considering the purchase of a new machine for $500,000. It is expected that the equipment will generate annual cas
anygoal [31]

Answer:

8 years

Explanation:

Given: Cost of new machine= $500000.

           Annual cash inflow= $100000.

           Annual cash outflow= $37500.

First, we will calculate annual payback or cash inflow.

Annual payback= (cash\ inflow - cash\ outflow)

∴Annual payback= (\$ 100000 - \$ 37500)= \$ 62500

Now computing cash payback period.

Cash payback period= \frac{initial\ investment}{annual\ payback}

Cash payback period= \frac{500000}{62500} = 8\ yrs

∴ Cash payback period is 8 years.

When payback period is short then investment is more attractive.

6 0
3 years ago
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