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likoan [24]
2 years ago
8

Casey is considering taking out a 30-year loan with monthly payments of $205 at an APR of 1.9%, compounded monthly, and this equ

ates to a loan of $56,220.01. Assuming that the APR and the length of the loan remain fixed, which of these is a correct statement?

Business
2 answers:
Sergio [31]2 years ago
4 0

So logically, without doing any math, you can look at the answers and see which is the correct answer.

So we are told that rate and term stay the same.

So if you make lower payments but make the same number of payments, the total amount of payments would be LESS than the original loan.

If you make higher payments, the amount of the loan would be MORE.

Look for the answer that meets this criteria.

Kipish [7]2 years ago
4 0

Answer:

A, monthly payments of $195

Explanation:

You might be interested in
Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materials $12, direct lab
o-na [289]

Answer:

$75.40

Explanation:

Mark up is a percentage applied on the cost to get the selling price. In other  word, the difference between the marked-up amount and the total cost gives the profit of the entity.

To get the target selling price, we would first determine the total cost, then apply the mark up percentage on the cost and add the result to the cost.

Total cost per unit

= $12 + $4 + $9 + $10 + $5 + $12

= $52

Amount of mark up

= 45% * $52

= $23.40

Target selling price = $52 + $23.40

= $75.40

4 0
2 years ago
Compton Associates is an architectural firm that has been in practice only a few years. Because it is a relatively new firm, the
Deffense [45]

Answer:

AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA

Explanation:

7 0
2 years ago
​Lori, who is risk​ averse, has two pieces of​ jewelry, each worth​ $1,000. She plans to send them to her​ sister's firm in Thai
Mkey [24]

Answer:

The correct answer is the option E: higher if she sends the jewelry to Thailand in separate boxes because she's risk averse.

Explanation:

On the one hand, if Lori is <em>risk averse</em> then that means that she tends to prefer the less risk that can be in the moment of making a decision without given importance to what she can make of that decision.

On the other hand, the <em>expected utility</em> hypothesis states that Lori will choose the option that will have a greater utility according to the situations.

In conclussion, Lori will choose to send the jewelry to Thailand in separate boxes because she is risk averse and she will prefer to expend more money and lower the risks and by doing that she will have a higher expected utility.

3 0
2 years ago
The 6.3 percent, semi-annual coupon bonds of PE Engineers mature in 13 years and have a price of $992. These bonds have a curren
ludmilkaskok [199]

Answer:

6.35, 6.39 and 6.49

Explanation:

6.3% = 0.063

yield = 0.063 ×$1,000/ 0.992 yield = 0.063 ×$1,000)/ 0.992 ×$1,000)

Current yield = 0.0635, or 6.35 percent PV = $992 = 0.063× $1,000 / 2) ×{(1 - {1 / [1 + (r / 2)]26}) / (r/ 2)} + $1,000 / [1 + (r / 2)]26 r = .0639, or 6.39 percent EAR = [1 + .0639 / 2)]2 - 1 EAR = .0649, or 6.49

7 0
2 years ago
Read 2 more answers
Exercise 13-8 Payback Period and Simple Rate of Return [LO13-1, LO13-6]
andrew-mc [135]

Answer:

4 years

Yes

Explanation:

Payback period calculates the amount of time it takes to recover the amount invested in a project to be recovered from the cumulative cash flow.

Cash inflow for the period = Net income + Net cash deductions (depreciation expenses)

$60,800 + $19,200 = $80,000

Payback period = amount invested / cash inflow

$320,000 / $80,000 = 4 years

If the payback period is five years or less, the project would be accepted because the amount invested would be recovered in 4 years. Therefore, the company would purchase the new games.

I hope my answer helps you

5 0
2 years ago
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