4.Don James purchased a new automobile for $20,000. Don made a cash down payment of $5,000 and agreed to pay the remaining balance in 30 monthly installments, beginning one month from the date of purchase. Financing is available at a 24% annual interest rate. Required: Calculate the amount of the required monthly payment. Lang Warehouses borrowed $100,000 from a bank and signed a note requiring 20 annual payments of $13,388 beginning one year from the date of the agreement. Required: Determine the interest rate implicit in this agreement.

$670

Explanation:

The amount of the required monthly payment that James is required to pay can be calculated as follows.

DATA

Cost of automobile = $20000

Initial payment =  5000

Remaning Loan amount = PV = 15000

nper = 30 monthly installments

Rate per month = 24%pa = 24/12 = 2% per month

FV = 0 (Loan is fully paid in 30 Month)

Solution

Monthly payment = PMT(Rate,nper,PV,FV)

Monthly payment = PMT(2%,30,-15000,0)

Monthly payment = $670

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know