Substract the payment for borrowing

Assignment Help Business Economics
Reference no: EM132436339

Let's turn to thinking about a car loan. A car loan is repaid (amortized) over a shorter period of time. Now, you are choosing between buying a new or used car. The used car has relatively low mileage and is in good condition. Both vehicles come with good warranties. You can borrow either $15,000 (new) or $5,000 (used) over 3 years at 6.5% interest.

How much more is the monthly payment for the $15,000 loan than the $5,000 loan? That is, calculate the payment for borrowing $15,000 at 6.5% interest for 3 years then substract the payment for borrowing $5,000.

Reference no: EM132436339

Questions Cloud

Problem regarding the autonomic nervous system : What are the differences between somatic and autonomic nervous system (number of neurons in a chain and their locations)?
Difference between an acute inflammatory response : What is the difference between an acute inflammatory response and chronic inflammatory response?
Theories support the recent rise of china : What trade theories support the recent rise of China and India on the global stage? Explain your views in detail. Give specific examples.
Paying the higher non-discounted prices : Does your company do it? Or, does your organization see it done by some of your suppliers?
Substract the payment for borrowing : That is, calculate the payment for borrowing $15,000 at 6.5% interest for 3 years then substract the payment for borrowing $5,000.
Assume that nothing happened to the supply curve : Suppose, that the demand for watches increases and shifts the demand curve due to increased advertising by watch manufacturers.
Calculate a numerical value for the price elasticity : Choose a product or company of interest to you. Imagine your boss asks you to calculate a numerical value for the price elasticity of demand.
Potential supply-side effects of paul ryan tax plan : Explain the potential supply-side effects of Paul Ryan's tax plan,
Explain the changes in the diagram : By this, not just explain the changes in the diagram, but also state what components of the AD and AS curves are changing (if any), and in which direction.

Reviews

Write a Review

Business Economics Questions & Answers

  Highest total utility involves a comparison

The step-by-step process of finding the choice with highest total utility involves a comparison of the:

  Qa local restaurateur who had been running a profitable

q.a local restaurateur who had been running a profitable business for many years recently purchased a three-way liquor

  Based on the criteria used by the bureau of labor statistics

Consider a small economy composed of six people: Eric, Ginny, Kenji, Lucia, Sharon, and Paolo. Based on the criteria used by the Bureau of Labor Statistics (BLS), identify each person’s status as Employed, Unemployed, “Not in the labor force” if not ..

  Explain life-cycle model-life-cycle hypothesis

Explain life-cycle model (Life-cycle hypothesis). It has been suggested that tax policy favors deductions for AGI compared to itemized deductions. Describe two ways in which deductions for AGI are treated more favorably than itemized deductions.

  Calculate the price elasticity

Average visits per week equal 640 when the copy is $40 and equal 360 when the copayment is $60. Calculate the price elasticity using 360 and $60 as the denominators for percentage change calculations.

  Fruit-picking can be done by children or adults

Assume to fruit-picking can be done by children or adults, but to adults are twice as efficient as children

  Warranties-product liability and consumer law

Cutter Company makes and sells table saw, which are designed to be safe if used properly. Erin buys a Cutter saw and lends it to her neighbot Frank. To reach a toolbox on a high shelf in his garage, Frank props the saw at an angle against a cabinet a..

  The firm were single price monopolist

A monopoly firm faces an (inverse) demand curve of P = 196 – 28Q^0.5 + Q and has a constant marginal (and average) cost curve of 49. If the firm can perfectly price discriminate, what are its profits; what are the consumer surplus, producer surplus a..

  Movements along different points on the same supply curve

Discuss the factors contributing to movements along different points on the same supply curve, and the factors contributing to the supply curve shifting to the right or to the left of its original position.

  State the null hypothesis and the alternative hypothesis

1) State the null hypothesis and the alternative hypothesis 2) State the decision rule for 0.100 significance level.(round to 3 decimal places)

  Surrounding behavioral health create special challenges

What factors surrounding behavioral health create special challenges and special considerations for managed care programs? How is managed behavioral healthcare different from managed acute medical or managed acute surgical care?

  Private practice needs a van to carry crew and equipment

A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $2,700 per year, paid at the beginning of each year, in which case maintenance is provide. Alternatively, she can buy a use..

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