How much is the constant amount

Assignment Help International Economics
Reference no: EM1393369

1. A college student in her senior year is considering purchasing a new car. The price of the car is $18,500, the sales tax is 8%, and the title, license, and registration fee is $450. The dealer has an innovative financing program for new college graduates that starts with a small monthly payment and the payments will gradually increase. The dealer offered to finance 90% of the price of the car for 48 months at a nominal interest rate of 9% per year, compounded monthly. The first payment is $200 and each successive payment will increase by a constant dollar amount ‘x.'

(a) How much is the constant amount "x"?

(b) How much is the 48th payment?

2. The new copier your company has recently bought is expected to incur the following repair costs:

Year Repair Cost
1 $ 0
2 500
3 500
4 1500
5 2000

The dealer has offered you a 5-year maintenance contract for $800 per year payable at the end of each year. Your company's MARR is 6% per year. Is this a good deal

Reference no: EM1393369

Questions Cloud

Construct the budget constraint for a consumer : Does Will's frequent buyer program have the same effect on the consumption of its bagels that would occur if it simply lowered the price of one dozen bagels by 3%? Explain.
How does the concept of product life cycle apply to regal : How does the concept of product life cycle apply to Regal Marine products? Global firms like Regal Marine know that the basis for an organization's existence is the good or service it provides society. Great products are the keys to success
Conditional probability formula and contingency tables : In large accounting firm, the proportion of accountants with MBA degrees and at least five years of professional experience is 0.75 times the proportion of accountants with no MBA degree and less than 5 years of professional experience.
Explain non-negativity constraints : Explain Non-negativity constraints - restrict the decision variables to zero. restrict the decision variables to positive values
How much is the constant amount : How much is the constant amount "x" and how much is the 48th payment and the dealer has offered you a 5-year maintenance contract for $800 per year payable at the end of each year.
Difference in dna sequence among species : There is evidence that many of differences in DNA sequence among species are not adaptive. Other differences among species, both in DNA and in morphology
Descriptive and inferential statistics : Differences in Descriptive and Inferential Statistics and analyze the differences between descriptive and inferential statistics.
Method of stickiness advantageous : The gecko is a reptile that has amazing ability to climb smooth surfaces even glass. Recent discoveries indicate that geckos stick to smooth surfaces via van der Waals interactions in septae on their feet and smooth surface.
Sampling mean and population mean : Drug manufacturer knows that for a certain antibiotics, the average number of doses ordered for a patient is 20. Steve Simmons, a salesman for the company

Reviews

Write a Review

International Economics Questions & Answers

  Question - comparative advantage

In a day of production, companies in Angola can manufacture 200 liters of oil or 100 kilograms of tungsten. Companies in Namibia can manufacture 160 liters of oil or 60 kilograms of tungsten.

  Finding the opportunity cost

As the French franc appreciates in value relative to the United States dollar, what happens to the price of United States goods in France? What happens to the price of French goods in the United States?

  First versus second best conditions

The theory of the 2nd best leaves welfare economists high and dry since not only does it abolish established objectives of 1stbest situations,

  Initial equilibrium position in curve diagram

Assume that, from an initial equilibrium rank in the offer curve diagram, nation I imposes a tariff on country II's export good at the same time that customers in country II change their tastes toward wanting more of II's export good.

  Understanding the concept of learning curves

Understanding of the ideaof learning curves and how a learning curve applies to specific business specialist. discussion on the concept of learning curve and how it applies to accountants and marketers.

  Determine the size of the national debt

Find the current state of the dollar versus other international currencies? What has been trend for the last six months and  Determine the size of the national debt?

  Leisure as a normal good for the labor supply function

Think the problem of maximizing u(c,l) subject to pc + wl = w + y, where c is consumption, l (element of (0,1)) is leisure time, and y is non-wage income.

  Define international trade and its effect

One of your relatives advices to you that our nation should stop trading with other nations because imports take away jobs and lower our national well-being.

  Multiple choice questions on exchange rate

Smith is a currency trader and reviewing forward foreign exchange rates. His investors have made several statements regarding foreign exchange rates.

  Question about stock splits

From an accounting standpoint, stock splits neither add nor detract from the intrinsic value of the stock. For example, if stock was $100,paying a $2.50 dividend and underwent a 2:1 split,

  Discuss the behavior of an oligopoly

What did Adam Smith mean when he wrote "Seldom do businessmen of the same trade get together but that it results in some detriment to the general public"?

  White collar services jobs

What is offshoring of white-collar service jobs, and how does it relate to international trade? Why has it recently increased? Why do you think more than half of all offshored jobs have gone to India?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd