When the economy is in a recessionary gap, a fiscal policy that boosts spending or lowers taxes is most appropriate.
A recessionary gap occurs when an economy is unable to increase production. The lack of enough money flow in an economy is the cause of this predicament. So, using these methods, the government injects money into the economy. Contractionary fiscal policy is what this is. The government could raise tax rates to lower overall spending levels. Inflationary pressures are reduced as more money is taxed and less is available for spending. The same effect would result from reduced government spending. Fiscal policy in economy changes the overall demand for goods and services, which is its most noticeable direct consequence. For instance, a fiscal expansion increases overall demand through one of two mechanisms. First, if the government increases its spending while maintaining its tax rate, demand is directly increased.
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bill buyer and sam seller contract for and close on property on the edge of town. a week after closing bill gets a notice that a developer has announced plans to build a mall on the property behind bill's new house. bill files suit against sam for failing to disclose a material fact. what are bill's chances?
Bill's chances would depend on the contract between him and the seller. If the contract has a clause that the seller must disclose any material facts about the property, then Bill would likely win the lawsuit. If the contract does not have such a clause, then Bill's chances would be more uncertain.
What is contract?
A contract is an enforceable legal agreement that outlines and governs the parties' rights and obligations. The transfer of commodities, services, money, or a promise to transfer any of those at a later time are common components of contracts. The core principle of contract law, a division of the law of obligations that deals with contracts, is that agreements must be upheld.
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How much does the average Thanksgiving turkey weigh?
Toms are grown to an average live weight of 41 pounds, while hens average 17 pounds.
Approximately 57 percent of harvested turkeys that are federally inspected are toms (male), while roughly 43 percent are hens. Size is one of the primary variations. Toms grow to an average live weight of 41 pounds, whereas hens average 17 pounds. To put this into practical terms, a tom is a turkey that weighs 16 to 24 pounds, whereas a hen weighs 8 to 16 pounds.
Depending on the season, average live weights can change. Large turkeys that are suitable for processing are the producers' main priority from January to May. However, production switches to smaller, whole turkeys from June to November, which are ideal for holiday centerpieces.
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one of the true risks of high national debt is an equity issue in that upper-income individuals may benefit more through expanded investment opportunities at the cost of lower-income individuals.
One of the true risks of the high national debt is an equity issue in that upper-income individuals may benefit more through expanded investment opportunities at the cost of higher taxes on lower-income individuals.
An investment is an asset or item purchased for income or capital appreciation.
Valuation refers to the increase in value of an asset over time. When a person purchases a good as an investment, the intention is not to consume the good, but to use it to generate wealth in the future. Simply put, investing works when you buy assets at a low price and sell them at a high price. This type of investment return is known as capital gain. Selling assets for profit and making a profit, or realizing capital gains, is one way to make money with your investments.Learn more about investment here: https://brainly.com/question/1305349
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a few days after contracting to sell the ranch, your client receives an offer from an oil and gas exploration company to lease the mineral rights for five years, which will include a $5,500 signing bonus. cautioning the client that you are not giving legal advice and he should talk with his lawyer, you note that
After the contract is signed without the buyer's written agreement, paragraph 10 of the contract from home is a mineral lease.
A lease is a formal, legally-binding agreement stating the conditions under which one party signs to rent property owned by another party.It assures the landlord or property owner of regular payments for a predetermined duration in exchange for the owner's or lessee's usage of the property.
If client receives an offer from oil company to lease mineral rights, I know that the mineral lease is established according to paragraph 10 of the contract form.
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listed below are year-end account balances ($ in millions) taken from the records of symphony stores. debit credit accounts receivable 668 building and equipment 920 cash 48 interest receivable 37 inventory 31 land 162 notes receivable (long-term) 495 prepaid rent 34 supplies 12 trademark 55 accounts payable 665 accumulated depreciation 67 additional paid-in capital 479 dividends payable 20 common stock (at par) 12 income tax payable 61 notes payable (long-term) 825 retained earnings 299 deferred revenue 34 totals 2,462 2,462 what would symphony report as total shareholders' equity?
Allowance for uncollectible accounts are deduct of the total amount of accounts receivables.
Some reclassification are needed to do before report the total Assets.Allowance for uncollectible accounts are deduct of the total amount of accounts receivablesPetty Cash Fund is the same as Cash with the difference that this funds have an specific use as minor expenditures.Account of Current Assets , the criteria is to have a liquidity speed less of one yearCash and Petty Cash FundAccounts Receivable less Allowance for uncollectible accountsPrepaid Rent
Interest Receivable
Supplies
Inventory
Account of Non Current Assets , the criteria is to have a liquidity speed more than one year and are known as fixed assets
Building and Equipment
Accum Depreciation
Trademark
Notes Receivable
Land
Account of Current Liabilities , the criteria is to have a liquidity speed less of one year
Accounts Payable
Cash Dividend Payable
Deferred Revenue
Income Tax Payable
Account of Non Current Liabilities, the criteria is to have a liquidity speed
more than one year and are known as long term financing
Notes Payable
Account of Total Equity
Additional Paid in Capital
Common Stock
Retained Earnings
$808,000 TOTAL EQUITY
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command economies perform better than free economies in the long run. b) social surplus is minimized in a free economy. c) social surplus is maximized in a command economy. d) free economies perform better than command economies in the long run.
Option D is correct, According to historical evidence, Free economies perform far better than command economies in the long run.
Free economies are one which is based on private enterprise principles and have minimal interference from the government along with demands dictating production and prices exist in capitalist society. Whereas command economies are more under the command of the central government who dictates the level of production and the prices charged for goods and services mostly exist in a communist society.
Countries like New Zealand, and Canada are some examples of free economy countries where states have no interference. Cuba and North Korean enterprises are mostly under the government's command.
Due to not having any political influence, free economies work better than command economies.
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Complete question:
Historical evidence suggests that:
A) command economies perform better than free economies in the long run.
B) free economies perform better than command economies in the long run.
C) social surplus is maximized in a command economy.
D) social surplus is minimized in a free economy.
a(n) has two drawbacks: the fee paid by the importer to the bank and since this is a financial liability, it may affect the importer's ability to borrow for other transactions.
A letter of credit has these two drawbacks.
A letter of credit is frequently used in international trade to guarantee that a payment will be made to the seller promptly and in full, as guaranteed by a bank or other financial institution.
In addition to requesting security from the buyer, the bank will charge a fee after providing a letter of credit, which is ordinarily a percentage of the letter of credit. Revolving, commercial, and confirmed letters of credit are a few examples of the different kinds of letters of credit.
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the bruin's den outdoor gear is considering a new 6-year project to produce a new tent line. the equipment necessary would cost $1.31 million and be depreciated using straight-line depreciation to a book value of zero. at the end of the project, the equipment can be sold for 10 percent of its initial cost. the company believes that it can sell 24,000 tents per year at a price of $65 and variable costs of $25 per tent. the fixed costs will be $405,000 per year. the project will require an initial investment in net working capital of $197,000 that will be recovered at the end of the project. the required rate of return is 10.8 percent and the tax rate is 21 percent. what is the npv? rev: 03 23 2022 qc cs-300679 multiple choice $730,978 $806,640 $660,178 $913,110 $716,110
The term "working capital investment" refers to the initial investment made to cover the project's initial operating costs (such as inventory of raw materials).
It is common practice to view this portion of the initial expenditure as a short-term investment.
How are initial investments in net working capital determined?
The amount required to launch a project or business is the initial investment. It's also known as initial outlay or initial investment outlay. It is equal to capital expenditures, working capital requirements, and proceeds from assets that have been sold or made available for use elsewhere after taxes.
Outlays for working capital, equipment, and buildings are included in the initial investment.
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State one financial objective for LEGO.
3 Marker
Answer: Building, un-building, rebuilding, thereby creating new things and developing new ways of thinking about ourselves, and the world.
Explanation: looked at Lego. com.
I hope it’s right, sorry if it’s not. Best of luck :)
outdoor outfitters store contracts to buy fifty tents from pitched camp, inc. unless the contract states otherwise, this document is assumed to be
Unless the contract states otherwise, this document is assumed to be ON a bill of lading O a destination contract.
What do you mean by contract?
Contract can be defined as a promise which is enforceable by law. It requires the mutual assent of two or more persons, one of them ordinarily making an offer and another accepting.
Valid contract requires the following characteristics: offer, acceptance, consideration, intention to create legal relations, authority and capacity, and certainty.
Contracts are of various kinds
Valid contract : Valid and enforceable Voidable contract : if party consent is not freeIllegal contract : not enforceable by lawTo know more about Contracts from the given link
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A blogging code of ethics ___________.
-Group of answer choices
-gives instruction on how to act in the blogosphere
-outlines how the companies stance on personal blogging
The term "blogging" refers to self-published online writing, photography, and other media.Blogging started out as a way for people to write entries in a diary, but it has since been integrated into many businesses' websites.
What are the 3 segments of the set of rules?
The Set of rules is separated into three significant segments, "Obligations to Clients and Clients," "Obligations to General society," and "Obligations to Real estate professionals."
What is a blog about ethics?
The ethics of blogging is a digital version of ethics.As a result, it embodies all of the fundamental principles of ethical behavior, such as honesty, objective thinking, diligence, responsible behavior, trustworthiness, and integrity above all else.The latter expression can be traced back to Hamlet by Shakespeare.
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normal balances of merchandise accounts what is the normal balance of the following accounts: a. cost of merchandise sold b. customer refunds payable c. delivery expense d. merchandise inventory e. sales f. sales tax payable
a, b, c, d, and f have debits as normal balances and g has credits as normal balances. This is because the account's normal balance is on the side of the account that is positive or increasing. The normal balances for asset and expense accounts are debits and for income, equity, and liability accounts are credits.
Accounts with debit balances typically include assets, expenses, and losses. Examples of these accounts are cash accounts, accounts receivable, prepaid expenses, fixed assets (Assets), wages (Expenses), and loss on sale of assets (Loss) accounts. The balance on your statement is the amount owed to you by your card issuer. Credits are added to your account with each payment. A credit will be added when you return an item purchased with a credit card.
In accounting, each account has a regular balance. Assets have normal debit balances, liabilities and equity have normal credit balances. Income has a normal credit balance and expenses have a normal debit balance.
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When customers have a low involvement in a purchase but perceive significant brand differences, they will most likely engage in ________.
A) complex buying behavior
B) dissonance-reducing buying behavior
C) habitual buying behavior
D) variety-seeking buying behavior
E) brand conviction buying behavior
When customers have a low involvement in a purchase but perceive significant brand differences, they will most likely engage in variety-seeking buying behavior.
What is low involvement?
Products that are commonly purchased and with little consideration or effort since they don't pose a serious threat to the consumer's safety or significantly alter their way of life.
What sort of product would be considered low involvement?
For instance, buying a pack of gum or some chocolate at the checkout in a store seldom takes more than a few seconds because these are minimal involvement purchases that people make on whim.
What is high-involvement?
A product that necessitates the consumer's consideration and effort before making a decision. This will involve comparing costs and the actual products by browsing via various catalogs, stores, etc.Learn more about low involvement
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Management is permitted to voice objections to the formation of a union under the.
Management is allowed to voice objections to the formation of a union below the: Labor Management Relations Act.
The required details for Labor Management Relations Act in given paragraph
Labor Management Relations Act regulates the organizational rights of alternate unions and promotes and helps collective bargaining on the place of business and at sectoral level. It additionally offers with moves and lockouts, place of business boards and opportunity dispute resolution. The Labor Management Relations Act of 1947, higher called the Taft–Hartley Act, is a United States federal regulation that restricts the sports and energy of exertions unions. It turned into enacted through the eightieth United States Congress over the veto of President Harry S. Truman. Taft–Hartley turned into delivered within side the aftermath of a principal strike wave in 1945 and 1946. Though it turned into enacted through the Republican-managed eightieth Congress, the regulation obtained widespread help from congressional Democrats, lots of whom joined with their Republican colleagues in vote casting to override Truman's veto.
The Labor Management Relations Act persisted to generate competition after Truman left office, however it stays in effect.
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which one of the following items would not be considered a manufacturing cost? a. tires for an automobile manufacturer. b. plant property taxes for an ice cream maker. c. sales commissions for a car manufacturer. d. cream for an ice cream maker.
Sales commissions for a car manufacturer would not be considered a manufacturing cost. ( Option C )
- More about manufacturing cost :
-Manufacturing costs are the costs incurred during the production of a good. Direct materials, direct labor, and manufacturing overhead are also included in these prices. In the revenue statement, the costs are frequently displayed as separate line items. These expenses are incurred by an organization when manufacturing something.
- In the manufacturing sector, the three main cost components are materials, labor, and overhead. There are no indirect costs. In other words, while the foreman's pay and supplies are covered, neither the office's nor the corporation's accountant's pay is.
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1. The apartment was so cool, but there is no bus stop within miles and I don't have a car. Rent
Not rent
2. The renting agent says I have to rent for at least one year. But I'm not sure how many months I'll be in town.
Rent
Not rent
3. I'm not sure how many months I'll be in town. The renting agent says I can leave with 30 days notice.
Rent
Not rent
4. It fits my budget, and I can get to school and work easily.
Rent
Not rent
5. The apartment is great! Bigger bath than I have at home. Close to work! Rent is reasonable! On the "down side," I like cranking my tunes, but the walls are thin and this apartment is loaded with retirees. Plus, they don't allow pets, and I'm thinking about getting a pet boa constrictor.
Rent
Not rent
6. I did my homework on the landlord and found out he has a lot of complaints against him from former renters. He never repairs problems in apartments and never gives deposits back without a fight.
The apartment was so cool, but there is no bus stop within miles and I don't have a car. This was the based on the not rent. Thus, option (b) is correct.
The renting agent says I have to rent for at least one year. But I'm not sure how many months I'll be in town. This was the based on the rent. Thus, option (a) is correct.
I'm not sure how many months I'll be in town. The renting agent says I can leave with 30 days notice. This was the based on the rent. Thus, option (a) is correct.
What is rent?The term rent refers to the based on the deal with the landlord and tenant's. The landlord was the received the payment on the behalf of the give the property was the used.
It fits my budget, and I can get to school and work easily. This was the based on the rent.
The apartment is great! A bigger bath than I have at home. This was the based on the rent.
I did my homework on the landlord and found out he has a lot of complaints against him from former renters. This was the based on the not rent.
As a result, the significance of the sentence are rent or not rent are the aforementioned.
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Which type of tax takes a higher percentage of income from poorer people than from wealthier people?.
Regressive taxes have greater impact on the lower-income individuals than on wealthy.
What is Regressive tax?A tax that is levied in a way that the tax rate drops as the amount subject to taxation rises is referred to as regressive. The term "regressive" refers to a distribution effect on income or spending that advances from high to low so that the average tax rate is higher than the marginal tax rate. Because of the inverse relationship between the tax rate and the taxpayer's capacity to pay, as determined by assets, consumption, or income, regressive taxes place a heavier burden on the poor than the rich in terms of personal income and wealth. These taxes tend to shift the relative tax burden from those with higher ability to pay to those with lesser ability to pay, reducing the tax burden for those with higher ability to pay.
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nancy donated an antique desk to her church that she paid $800 for six years ago. an appraisal indicates the current fair market value of the desk is $1,000. the church donated the desk to a family whose home was destroyed in a fire. as a result, nancy will be able to deduct
The church donated the desk to a family whose home was destroyed in a fire. as a result, Nancy will be able to deduct $800.
The Church The word translated “church” in the English Bible is Ecclesia. The word is derived from the Greek kaleo (to call) with the prefix ek (from). Therefore, the word means "the called one." However, the English word "church" does not come from ecclesia, but from the word curiacon, which means "dedicated to the Lord."
To be a "church," a religious organization must engage in the administration of the priesthood and the conduct of religious services in accordance with the principles and practices of the particular religious group."
The mission of the church is to: To provide the way for the final establishment of the kingdom of God on earth, whose purpose is first to develop Christlike attributes in the lives of men, and second to To live is to transform society so that the world is a better and more peaceful place.
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After 154 minimum payments how much would zach pay for his 910 of emergency purchases.
After 154 minimum payments, Zach would pay $16,691.48 for his $910 of "emergency" purchases on his credit card. The total interest Zach paid to the credit card company is $14,241.48.
How does credit card interest work?
Credit card interest is applied using the APR (annual percentage rate).
The APR is applied monthly on the outstanding credit card balance.
For Zach, with an advertised APR of 19%, an interest rate of 1.58% is applied to the outstanding balance and added monthly to the total amount he owed.
N (# of periods) = 154 months
I/Y (Interest per year) = 19%
PV (Present Value) = $910
PMT (Periodic Payment) = $10
Results:
FV = $16,691.48
Sum of all periodic payments = $1,540 ($10 x 154)
Total Interest = $14,241.48
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The question was incomplete. Check below the full question.
After 154 minimum payments, how much would Zach pay for his $910 of "emergency" purchases? How much money in total interest did he pay to the credit card company?
natural gas is used as a source of energy in many manufacturing processes. assume large new deposits of natural gas are discovered in nebraska, which increase the supply of natural gas and decreased the price of natural gas. this would cause
Many manufacturing processes use natural gas as an energy source. Assume that significant new natural gas resources are found in Nebraska.
Briefing:-This raised the natural gas supply and lowered the price of natural gas. The short-run aggregate supply curve would turn to the left as a result.
When the LRAS swings right, does the natural rate of unemployment go up, down, or stay the same?Yes, the natural rate of unemployment does decrease when the LRAS (long-run aggregate supply) shifts to the right. The natural rate of unemployment, often known as full employment, and LRAS are related ideas.
Which of the following would result in a rightward shift in the aggregate supply curve over the short term?a reduction in pay. The AS curve will rise (shift right) as a result of anything that lowers the cost of production since businesses will be more ready to create more at any given price.
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suppose that a monopolist is selling 100 units of a product at a price of $20 each. if the average variable cost at this level of output is $10.50 and average fixed cost at this level of output is $8, how much total economic profit is the firm earning?
$150 is the total economic profit, the firm is earning when a monopolist is selling 100 units of a product at a price of $20 each.
What is Economic Profit?
The difference between the revenue received from the sale of an output and the costs of all inputs used, as well as any opportunity costs, is the economic profit or loss. Economic profit is calculated by deducting opportunity costs and explicit costs from revenues earned.
Opportunity costs are a type of implicit cost that management determines and will vary depending on different scenarios and perspectives.
Understanding Economic Profit:
Economic profit is frequently examined alongside accounting profit. Accounting profit is the profit shown on a firm's income statement. Accounting profit compares actual inflows to outflows and is part of a company's required financial transparency.
Economic profit calculations differ depending on the entity and scenario. In general, it can be summed up as follows:
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An American organic potato-chip company has decided to consider global expansion. It has done its market research and found that there is a comparable market for its products. In addition, it has found the required distributors and a potential manufacturing location overseas. However, in the United States, its chips have regional themes, such as Saucy Southern Barbeque and Spicy Southwest Chili flavors, which will not easily translate into markets outside the United States. How could the company address this issue while maintaining the identifiable elements of the brand when expanding globally?
There are various strategies for addressing this issue regardless of which one you eventually adopt, you must change any of the elements of the marketing mix; two possible strategies are listed below.
How to illustrate the information?Product customization:
Changing the recipe for potato chips with the most similar flavors in the new region where the potato is distributed. It is difficult to predict how the chip flavor will be replicated in the global market, so looking for identifiable flavors per region while maintaining the brand's colors, advertising, price, and quality keeps the brand's identity untouchable even as the final product expands its lines.
Making changes to the promotion:
If changing recipes is too difficult for the product team, advertising campaigns will create a brand identity for different regions. For this, the packaging languages may change, and the methods of promotion in each region (TV, internet, influencers) may be considered to introduce the product in each region.
Alternatively, you could consider keeping the brand original and launching a strong pull marketing campaign to position the product as an International product.
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consider a 7-year bond with a 9% coupon and a yield to maturity of 12%. if interest rates remain constant, 1 year from now the price of this bond will be
A 7-year bond with a 9% coupon and a yield to maturity of 12%. if interest rates remain constant, 1 year from now the price of this bond will be higher.
Why is the interest rate important? What is the interest rate?One of the most significant elements of the American economic system is interest rates. They affect borrowing costs, the rate of return on savings, and they play a significant role in the overall return on many assets. A few interest rates might also offer insight into upcoming financial market and economic activities.
How do interest rates work to our advantage?People will earn more money on their savings if interest rates increase. As a result, there is less demand for stocks because people are no longer need to invest in them and assume further risk.
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By using ________, businesses can collect and analyze data to discern large-scale patterns of movement and identify distinct classes of behaviors in specific contexts.
By using location-enabled services, businesses can collect and analyze data to discern large-scale patterns of movement and identify distinct classes of behaviours in specific contexts.
What does the term "location-based services" mean?Location-based services in Android are those that deal with the physical location of the device. Finding local eateries, gas stations, or shops is the finest live example. Learn how to use Android's Location-Based Services (LBS) to obtain a precise location in this article.
Why are location services used?offers a location service called Location Services (LS), also known as Go ogle Location Accuracy in Android 9 and higher, as the network location provider for the majority of Android devices. This service promises to deliver a more precise device location and enhance location accuracy in general.
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one of the main reasons to consider purchasing from an international global source is the opportunity to improve quality, cost, and delivery performance one of the main reasons to consider purchasing from an international global source is the opportunity to improve quality, cost, and delivery performance true false
Quality, cost, and delivery performance one of the main reasons to consider purchasing from an international global source .
What is supply chain management?The handling of a good or service's full manufacturing flow, from the raw materials to the delivery of the finished product to the customer, is known as supply chain management. A business establishes a network of suppliers (or "links" in the chain") to convey the product from raw material suppliers to businesses that deal with customers directly.To meet the demand for a company's product or service from customers, plan and manage the necessary resources. Once the supply chain is in place, choose KPIs to gauge its performance in terms of customer value delivery, efficiency, and effectiveness.Hence, Quality, cost, and delivery performance one of the main reasons to consider purchasing from an international global source .
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As liv golf expands to 14 events in 2023, how much money will be available to competitors in the upcoming season?.
There will be $405 million available to contestants in the following season as LIV golf grows to 14 events in 2023.
LIV golf - what is it?The LIV Golf League, created as an alternative to the current PGA Tour, attempts to apply the principles of arena-style sporting events to the world of golf. The LIV system, which has a fundamentally different business model than the conventional structure, enables greater financial advantage for those engaged beyond just winning tournaments.
Unlike the PGA Tour, LIV golf allows appearance fees, so players vying for the $20–25 million purse are also able to get additional compensation.
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which moral hazard of human resource management treats employees like inanimate objects or impersonal goods?
Moral hazard of human resource management treats employees are to help a person distinguish between right and wrong and act accordingly, ethics are values or principles that are either internalized by the human or reinforced externally.
Human resource management ethics refers to the application of distributive justice and fundamental decency to the treatment of employees. It pertains to corporate ethics. Employees should not be subjected to unjust treatment by human resource managers because of factors including race, caste, culture, external appearance, religion, or competition for jobs, among others. An ethical business advances the company's goals because motivated employees are more productive. It's important for new employees to understand how things operate at their new workplace as well as what is expected of them in terms of behavior and contributions. Human resources is responsible for writing employee handbooks that explain what is proper and incorrect. Since people are an organization's most valuable resource, doing this increases employee trust in the business.
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if the u.s. dollar appreciates relative to the euro, what is likely to be the result for the u.s. company that has company branches in germany? group of answer choices profits will increase, when measured in u.s. dollars. profits will decrease, when measured in u.s. dollars
Profits will decrease, when measured in U.S. Dollars Branches in Germany.
What is the difference between Euro and Dollar?U.S. dollar. The US dollar (USD) is the de facto standard for international trade and a reserve currency for the majority of the world. It is also the official currency of the United States. 22 nations in Europe, including 17 members of the European Union, use the Euro (EUR) as their unit of exchange.When profits are expressed in US dollars, they will decline. U.S. goods may cost overseas customers more when the dollar increases in value compared to other currencies.Exports fall when the dollar appreciates because they are now more expensive for foreign buyers to purchase, and imports rise as a result, lowering net exports. Exports rise when the value of the dollar falls because foreign buyers can now purchase them for less money, and imports fall as a result, increasing net exports.To learn more about Euro and Dollar refer to:
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______ have the fewest staff members per inmate.
Federal prisons have the fewest staff members per inmate.
What is the prisoner-to-guard ratio?
rate and a shorter duration of anticipated confinement than in larger jails.2016; The ratio of correctional officers to inmates was four to one. Were held in county and city jails across the US.
Who spends most time in jail?
Men are 9.0% more likely than women are (1.1%) to be incarcerated at least once in their lifetime. Among men, blacks (28.5%) are about two times as possible as Hispanics (16.0%) and multiple times more probable than whites (4.4%) to be confessed to jail during their life.
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i would like to buy a honda civic hatchback, which costs $22,900. i will put $5,000 down and pay the remainder in monthly installments over five years. how much is each monthly payment if my apr is 3% (compounded monthly)?
The client wants to spend $22,900 for a Honda civic hatchback. He will make a $5,000 down payment and then pay the balance over five years in monthly installments. If the APR is 3%, the monthly payment is $321.64.
Rate = 3% / 12 = 0.03 / 12 = 0.0025
No of months = 5*12 = 60 months
Present value [net of down payment] = 22,900 - 5,000 = 17,900
Future value = 0
[tex]A = P\frac{r(1+r)^{n} }{(1+r)^{n}-1 }[/tex]
[tex]A = 17900\frac{0.0025(1+0.0025)^{60} }{(1+0.0025)^{60}-1 }[/tex]
[tex]A = 17900\frac{0.0025 * 1.162}{1.162 - 1}[/tex]
[tex]A = 17900\frac{0.002905}{0.162}[/tex]
A = 320.98 ≅ 321
Therefore, monthly payments = $321.
The annual rate is 3%. Due to the fact that we require a monthly rate, we have separated We multiplied 5 by 12 to find the number of months in 5 years because there are 12 months in a year. Because interest will be applied to the remaining debt in this case, we must take the amount after deducting the down payment.
Considering that the debt will be completely repaid in five years, we've estimated the value will be zero at that point.
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