Suppose you borrow $20,000 for a new car at a monthly interest rate of 0.75%. If you
Question:
Suppose you borrow $20,000 for a new car at a monthly interest rate of 0.75%. If you make payments of $600/month, after how many months will the loan balance be zero? Estimate the answer by graphing the sequence of loan balances and then obtain an exact answer using infinite series.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (8 reviews)
It appears that the loan is paid off after about 38 months Let B be the loan bal ance afte...View the full answer
Answered By
Aun Ali
I am an Associate Member of Cost and Management Accountants of Pakistan with vast experience in the field of accounting and finance, including more than 17 years of teaching experience at university level. I have been teaching at both undergraduate and post graduate levels. My area of specialization is cost and management accounting but I have taught various subjects related to accounting and finance.
5.00+
13+ Reviews
32+ Question Solved
Related Book For
Calculus Early Transcendentals
ISBN: 978-0321947345
2nd edition
Authors: William L. Briggs, Lyle Cochran, Bernard Gillett
Question Posted:
Students also viewed these Mathematics questions
-
Bill buys a top-of-the-line computer for $4193.97 and pays off the loan (at 4.8% interest compounded monthly) by paying $100 at the end of each month. After how many months will the loan be paid off?
-
Suppose you take out a home mortgage for $180,000 at a monthly interest rate of 0.5%. If you make payments of $1000/month, after how many months will the loan balance be zero? Estimate the answer by...
-
1. A loan of $10,000 at 9% interest compounded monthly is repaid in 80 months with monthly payments of $166.68. After how many months will the loan be one-quarter paid off? One-half ? Three-quarters?...
-
Consider a random walk consisting of equi-probable p = q = 1/2 steps in left or right directions. However the step length at ith step is given by e-, i = 1,2,3..... N, with > 0 a constant. Calculate...
-
An amplifier circuit has power consumption Y that grows nonlinearly with the input signal voltage X. When the input signal is X volts, the instantaneous power consumed by the amplifier is Y = 20 +...
-
Compare and contrast market-skimming and market-penetration pricing strategies and discuss the conditions under which each is appropriate. For each strategy, give an example of a recently introduced...
-
Why is monitoring and information disclosure critical for the success of emissions banking and trading?
-
The Heinrich Tire Company recalled a tire in its subcompact line in December 2011. Costs associated with the recall were originally thought to approximate $50 million. Now, though, while management...
-
Create normalized database for a fictitious manufacturing company named TreeTopBirdHouses that has been in business since January 1, 2015. Requirements for database1 : a. Name the database...
-
Ferris Company began January with 6,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows:
-
a. Evaluate the series b. For what values of a does the series converge, and in those cases, what is its value? 3k (3*+1 1)(3* 1) 1) |k=1 ak k=1 (ak+1 1)(a 8.
-
A fishery manager knows that her fish population naturally increases at a rate of 1.5% per month. At the end of each month, 120 fish are harvested. Let F n be the fish population after the nth month,...
-
Viscous liquid from a circular tank, \(D=300 \mathrm{~mm}\) in diameter, drains through a long circular tube of radius \(R=50 \mathrm{~mm}\). The velocity profile at the tube discharge is \[u=u_{\max...
-
Give examples of how Internet and telecommunications technologies (e.g., mobile commerce [M-Commerce] and apps) have changed some of the services you use.
-
How is branding used in services marketing? What is the distinction between a corporate brand such as Marriott and the names of its various inn and hotel chains?
-
Can the risks and health consequences (for individuals and organizations) associated with difficult customers and coworkers be alleviated with employee education and training? What experiences have...
-
Identify the factors needed to make service teams successful in (a) an airline, (b) a restaurant, (c) a customer contact center. What are the factors that favor a strategy of employee empowerment?
-
Conduct a Google search for (a) MBA programs and (b) vacation (holiday) resorts. Examine two or three contextual ads triggered by your searches. What are they doing right, and what can be improved?
-
According to your observations of one of the mutant plants, what function is controlled by the knocked out gene? Explain your answer.
-
Express mass density in kg/m3 and weight density in lb/ft3. 1. Find the mass density of a chunk of rock of mass 215 g that displaces a volume of 75.0 cm3 of water. 2. A block of wood is 55.9 in. x...
-
When the Dow-Jones Industrial Index increases it usually means that the economy is growing, which in turn usually means that the unemployment rate is low. A statistics professor pointed out that in...
-
In Chapters 16, 17, and 18, we introduce regression analysis, which addresses the relationships among variables. One of the first applications of regression analysis was to analyze the relationship...
-
SPAM is an unfortunate fact of life. A random sample of university students was asked to report the number of Spam e-mails they receive in a typical day. Use an appropriate graphical method to...
-
Consider the Obsidian Project, which requires an investment of $362,868 initially, with subsequent cash flows of $58,160, $72,091 and $97,900. We can characterize the project with the following...
-
1. Define human resource (HR) management and explain how it relates to the management process. Cite examples of the application of these concepts, preferably from personal, professional experience.
-
Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materialsX442 and Y661. The company uses a...
Study smarter with the SolutionInn App