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dezoksy [38]
2 years ago
9

When you purchased a car, you borrowed $20,000 from the bank and agreed to make monthly payments of $423.17 for 5 years. What ra

te of interest is the bank charging you
Business
1 answer:
Oxana [17]2 years ago
6 0

Answer:

4.88%

Explanation:

The formula to calculate the rate of interest is:

r=(FV/PV)^1/n-1, where

r=rate of interest

FV= future value= 423.17*(12*5)=423.17*60=$25,390.2

PV= present value= $20,000

n= number of periods of time= 5

Now, you can replace the values in the formula:

r=(25,390.2/20,000)^1/5-1

r=1.048-1

r=0.0488→4.88%

According to this, the answer is that the bank is charging an annual rate of interest of 4.88%.

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A company must decide between scrapping or reworking units that do not pass inspection. The company has 13,000 defective units t
Nastasia [14]

Answer: $67,600 and $2600

Explanation:

Total unit = 13,000

Defective unit cost = $5.20

Resale price = $3.00

Reworked = $5.00

Full price = $8.20

Opportunity cost

= Full price - replacement unit

= 8.20 - 5.20

= 3.00

= . Cost of reselling

= 13,000 × 3.00

= $39,000

1. Cost of defective units

= 13,000 × 5.20

= $67,600

2. Cost of reworked

= $5.00 × 13,000

= $65,000

3. Full price

= 13,000 × $8.20

= $106,600

B. Incremental income of selling the unit as scrap and reworked

Scarp = $67, 600

Reworked = $(106600 -39, 000- 65,000)

= $2600

8 0
1 year ago
Both the Onus ferry operator in the monopoly market and each of the Yuri ferry operators in the perfectly competitive market wil
Lisa [10]

Answer: Please refer to Explanation.

Explanation:

Monopoly.

The 2 reasons why the monopoly’s marginal revenue will always be less than its price are;

a) Even though Monopolies have very large influence on the prices of goods and services they offer, for a Monopoly to sell more goods, they generally have to lower their prices. This will lead to a situation where Marginal Revenue, which is the additional revenue made per additional unit sold will be less than Price because additional revenue for a new unit will be less than the last one because prices are dropped .

b) A Monopoly's demand schedule is downward sloping. This means that demand rises as prices drop. As prices drop therefore, more goods will be sold but the marginal revenue will be less because prices had to be dropped to get an additional unit to be sold. That unit therefore will bring in less revenue than the last unit.

Perfectly Competitive Market

In such a market, the seller is a Price Taker. This means that sellers in this market do not sell at a price that they want but rather at a price the market has established to be the Equilibrium. This is because of the high competition in the market. Since they are all selling at the same price, this means that every additional revenue they get is the same as the price the market charges. This means that Price equals Marginal Revenue in this market.

3 0
1 year ago
Suppose you purchase one share of the stock of Cereal Correlation Company at the beginning of year 1 for $50. At the end of year
cricket20 [7]
B the answer is going to be
6 0
2 years ago
Suppose the yield on a 10-year T-bond is currently 5.05% and that on a 10-year Treasury Inflation Protected Security (TIPS) is 1
Serhud [2]

Answer:

c. 2.35%

Explanation:

10 year T bond Yield = 5.05 % (let it be rT10)

10 year TIPS yield = 1.8 % ( let it be r* )

MRP = 0.9%

Expected Inflation = rT10 - r* - MRP

                               = 5.05 % - 1.8 % - 0.9%

                               = 2.35 %

Therefore, The expected rate of inflation over the next 10 years is 2,35%.

4 0
2 years ago
George walks in and wants to send multiple back to back transactions to the
Gala2k [10]

The statement "The sender & receiver don't know each other, money send for sounds like very good to be true dealing, and the motive of the transactions with respect to the online goods is considered to be questionable" is considered to be the red flag.

The sender i.e. Geroge who not even know the receiver that sells the homeopathy remedies online so this could raise a few issues but it is not to be considered very serious for red-flagged:

  • Since e-commerce arises each and every time that lies between non-known parties online.

This is due to the dirt chape that could make it suspicious also they don't know each other so this should be considered red-flagged.

  • The instructions with regard to the payment do not represent any signal of reliability and truthfulness so might me the receiver is trustworthy and genuine.
  • In the case when the homeopathy remedies do not have the licensing and permissions so it would become questionable.

No one could suggest the specific brand of homeopathy as it becomes nonprofessional and non-appropriate, so the last option is not be considered.

Therefore we can conclude that The statement "The sender & receiver don't know each other, money send for sounds like very good to be true dealing, and the motive of the transactions with respect to the online goods is considered to be questionable" is considered to be the red flag.

Learn more about homeopathy here: brainly.com/question/7460064

8 0
1 year ago
Read 2 more answers
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