Hugh is in charge of creating the value proposition for a new start-up company. In order for him to create an effective value proposition, what questions does he need to answer for a potential consumer

Answers

Answer 1

Answer:

Who is the target buyer for the offering, what is the offering to the buyer, why is the offering unique for the customer

Explanation:

Since in the given situation, it is mentioned that the hugh developed the value proposition for newly startup company so for developing the effective value proposition he need to answer the question for a consumer that involved about the target purchaser who is offering, the offering made to the buyer and the unique offering made to the customer

These 3 types of questions he need to answer


Related Questions

Felix is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: Felix has only 20 hours this week that he can devote to training. Each hour he spends swimming is an hour that he can't spend biking or running. Which basic principle of individual choice do these statements best illustrate?

a. Juanita can use time most efficiently by spending the same amounts of time on swimming, biking, and running.
b. People face trade-offs
c. People usually exploit opportunities to make themselves better off.
d. Juanita has an incentive to spend more time on swimming than on biking or running.

Answers

The two choices that could represent this would be A, and B. I believe the correct answer to be B however.

Ad space can be purchased by companies to place advertisements in the form of pop-ups and banners on another company’s websites. Please select the best answer from the choices provided T F

Answers

Answer:

true

hope this helps!

please give brainiest <3

Calculate the annual coupon payment if the semi-annual coupon paying bond price is $920, the yield for the bond is 6%, the bond's face value is $1,000 and matures in 9 years. (Enter the answer in dollar format without $ sign or thousands comma -> 3519.23 and not $3,519.23 or 3,519.23)

Answers

Answer:

$48.40

Explanation:

Yield = 6%

Rate = Yield/2 = 6%/2 = 3%

YTM = 9

Nper = YTM*2 = 9*2 = 18

Face value = $1,000

Price(PV) = $920

Monthly payment = PMT(0.03, 18, -920, 1000)

Monthly payment = $24.1833

Coupon rate = (PMT/Face value) * 2

Coupon rate = (24.1833/1000) * 2

Coupon rate = 0.0241833 * 2

Coupon rate = 0.0483666

Coupon rate = 4.84%

Annual coupon payment = Face value * Coupon rate

Annual coupon payment = $1000 * 4.84%

Annual coupon payment = $48.40

Purdum Farms borrowed $17 million by signing a five-year note on December 31, 2017. Repayments of the principal are payable annually in installments of $3.4 million each. Purdum Farms makes the first payment on December 31, 2018 and then prepares its balance sheet. What amount will be reported as current and long-term liabilities, respectively, in connection with the note at December 31, 2018, after the first payment is made

Answers

Answer:

6998761626639499r9r9r8ryy

A manager has determined that a potential new product can be sold at a price of $25 each. The cost to produce the product is $17.5, but the equipment necessary for production must be leased for $75,000 per year. What is the break-even point

Answers

Answer:

10,000 units

Explanation:

Calculation to determine the break-even point

Using this formula

Break-even point = Fixed cost / [Selling Price - Cost Price]

Let plug in the formula

Break-even point = $75,000 / [$25 - $17.5]

Break-even point = $75,000 / [$7.5]

Break-even point = 10,000 units

Therefore the break-even point is 10,000 units

Accounting costs and economic costs differ because A) Economic costs include explicit costs and accounting costs do not. B) Accounting costs include explicit costs and economic costs do not. C) Economic costs include implicit costs and accounting costs do not. D) Accounting costs include implicit costs and economic costs do not.

Answers

Answer:

C) Economic costs include implicit costs and accounting costs do not.

Explanation:

Economic cost can be calculated as follow

Economic Cost = Explicit cost + Implicit cost

Whereas, the Implicit cost is calculated as follow

Accounting cost = Explicit cost

Hence, the difference between the economic cost and accounting cost is only the implicit cost.

Implicit cost is the opportunity cost.

Economic costs include implicit costs, such as opportunity costs, while accounting costs only consider explicit costs, such as monetary expenses. Therefore, option C is correct.

Economic costs encompass the full measure of costs incurred in pursuing a particular course of action. They extend beyond explicit monetary expenses and include implicit costs, such as opportunity costs. Opportunity costs represent the value of the next-best alternative forgone when making a decision.

Economic costs reflect the total resources and opportunities sacrificed, both explicit and implicit, to undertake a specific activity or venture.

By accounting for both explicit and implicit costs, economic costs provide a more comprehensive assessment of the true cost of a decision or action, considering the value of all foregone opportunities and resources used in the process.

Therefore, option C is correct.

Learn more about Economic costs here:

https://brainly.com/question/16664593

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[tex]144x \div 25 - 3 + 56 \sqrt{223} [/tex]

Answers

Answer:

[tex]\frac{144x}{25} - 3 + 56\sqrt{223}[/tex]

Explanation:

Given

[tex]144x \div 25 - 3 + 56\sqrt{223}[/tex]

Required

Simplify

The question is either incomplete or it is the solution to an existing question.

The question cannot be further simplified. However, a better way of writing the expression is:

[tex]\frac{144x}{25} - 3 + 56\sqrt{223}[/tex]

or

[tex]\frac{144x - 75}{25} + 56\sqrt{223}[/tex] ---- by taking the LCM

or

[tex]\frac{144x - 75 + 1400\sqrt{223}}{25}[/tex] ---- by taking the LCM

Other than rewriting the expression, nothing else can be done

Bottlebrush Company has income from operations of $73,745, invested assets of $245,000, and sales of $1,053,500. Use the DuPont formula to calculate the return on investment, and show (a) the profit margin, (b) the investment turnover, and (c) the return on investment. Round answers to one decimal place. a. Profit Margin fill in the blank 1 % b. Investment Turnover fill in the blank 2 c. Return on Investment

Answers

Answer:

a. Profit margin = Income from operations / Sales

Profit margin = $73,745/$1,053,500

Profit margin = 0.07

Profit margin = 7%

b. Investment turnover = Sales/Invested assets

Investment turnover = $1,053,500/$245,000

Investment turnover = 4.3 times

c. Rate of return on investment = Profit margin * Investment turnover

Rate of return on investment = 7% * 4.3

Rate of return on investment = 30.10%

How do different careers in the human services relate to one another

Answers

They relate because they all help people and you have to have a licensed degree, and practice

Williams Company pays each of its two office employees each Friday at the rate of $290 per day for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:

Answers

Answer:

Debit Salaries Expense $1,160 and credit Salaries Payable $1,160

Explanation:

Preparation of the month-end adjusting entry to record the salaries earned but unpaid

Based on the above information given the month-end adjusting journal entry to record the salaries earned but unpaid is:

Debit Salaries Expense $1,160

Credit Salaries Payable $1,160

( 2days * 2 workers *$290 per day = $1,160)

(To record the salaries earned but unpaid)

When he became the president of Jem Incorporated, John Smith changed the date of the weekly payday from the end of the day on Monday to the end of the day on Friday. The company has a weekly payroll of $10 million, and the cost of short-term funds was 13%. If this change delayed check clearing by 1 week, what annual savings were realized

Answers

Answer: $1.3 million

Explanation:

Based on the information given in the question, if this change delayed check clearing by 1 week, then the annual savings that were realized will be:

= Weekly payroll × Cost of short term funds

= $10 million × 13%

= $10 million × 0.13

= $1.3 million

Annual savings realized is $1.3 million.

Morphe Cosmetics agrees to manufacture makeup palettes for Jaclyn Cosmetics. Under the terms of the contract, Jaclyn will pay Morphe a total of $60,000, and Jaclyn can cancel the contract if it so chooses but must pay Morphe for work completed. Morphe believes that, if Jaclyn cancelled the contract, Morphe could sell the palettes to another firm and still make a profit. The manufacturing contract is expected to last six months, and as of December 31, 2021, the job is 80% complete. How much revenue should Morphe recognize in 2021 for this contract

Answers

Answer:

the revenue that should be recognized is $48,000

Explanation:

The computation of the revenue that should be recognized is shown below;

= Total price of the contract × Percentage of completion of the contract

= $60,000 × 80%

= $48,000

By multiplying the total contract price with the percentage we can get the revenue recognized

hence, the revenue that should be recognized is $48,000

Consuela is a business analyst for her company. She is working from home and on a video conference with several other team members. Her video conferencing client displays a message indicating that the quality of her connection is unstable. What is the most likely problem

Answers

Answer: c) Latency between her VPN client removing encryption and making it available to the video-conferencing client is causing poor performance.

Explanation:

A Virtual Private Network (VPN) is used to protect the identity of people online as it encrypts a person's data and uses different servers to allow them browse the web and with a different IP address from the user's original IP address that way it appears as though the user is somewhere else in the world than they actually are.

In doing this however, VPNs might give slow speeds due to the latency that develops as the VPN encrypts and decrypts data for use. In this case, the VPN latency in decrypting the video call for Consuela to see it is slowing down the speed of the Video conferencing client.

In addition to the $14,000 in expenses, in Nov. 2020, Julie’s Tax Prep paid two years’ worth of office rent ($1,000/month * 24 months = $24,000). The rent covers Nov. 1, 2020 through Oct. 31, 2022. How much of the $24,000 rent can Julie’s deduct in 2020?

Answers

Answer:

Julie’s can deduct $2,000 in 2020

Explanation:

In 2020 rents for only two months November 2020 and December 2020 are accrued

First calculate the monthly rent

Monthly rent = Rent paid / Month for which rent paid = $24,000 / 24 months = $1,000 per months

Now calculate the rent deduction to be made by Julie in 2020

Rent deduction 2020 = Numbers of months accrued in 2020 x Monthly rent = 2 months x $1,000 per month = $2,000

You company requires that all projects yield a return of 12%. You’re the head of a project team developing a new product. The initial investment needed is $500,000 and the expected cashflows from this project will be 70,000 for the next 10 years. Will your project be approved, (generates a return higher than 12%). What cashflow would be required to get your project approved?

Answers

Answer:

initial investment = $500,000

10 cash flows of $70,000

Present value of cash flows = 5.65022 * $70,000 = $395,515.40

NPV = -$500,000 + $395,515.40 = -$104,484.60

The project should be rejected.

In order to approve the project, the cash flows should = $500,000 / 5.65022 = $88,492.13. With these cash flows the NPV = $0.

The financial statements of Apple Inc. in Appendix A contain the following selected accounts, all in thousands of dollars.

Common Stock $35,867
Accounts Payable 49,049
Accounts Receivable 17,874
Selling, General, and Administrative Expenses 15,261
Inventories 4,855
Net Property, Plant, and Equipment 33,783
Net Sales 229,234

Required:
a. What is the increase and decrease side for each account?
b. What is the normal balance for each account?

Answers

Answer:

Apple Inc.

a. The increase and decrease side for each account

                                                                             ($'000) Increase  Decrease

                                                                                              Side          Side

Common Stock                                                 $35,867    Credit      Debit

Accounts Payable                                               49,049    Credit      Debit

Accounts Receivable                                           17,874     Debit       Credit

Selling, General, and Administrative Expenses 15,261     Debit       Credit

Inventories                                                            4,855     Debit       Credit

Net Property, Plant, and Equipment                  33,783     Debit       Credit

Net Sales                                                          229,234     Credit      Debit

b. The normal balance for each account

                                                                             ($'000) Normal Balance

                                                                                             

Common Stock                                                 $35,867    Credit Balance

Accounts Payable                                               49,049    Credit Balance

Accounts Receivable                                           17,874     Debit Balance

Selling, General, and Administrative Expenses 15,261     Debit Balance

Inventories                                                            4,855     Debit Balance

Net Property, Plant, and Equipment                  33,783     Debit Balance

Net Sales                                                          229,234     Credit Balance

Explanation:

Selected Accounts from Appendix A of Apple' Financial Statements:

                                                                             ($'000)

Common Stock                                                 $35,867

Accounts Payable                                               49,049    

Accounts Receivable                                           17,874

Selling, General, and Administrative Expenses 15,261

Inventories                                                            4,855

Net Property, Plant, and Equipment                  33,783

Net Sales                                                          229,234

b) Assets and Expenses increase by debit entries to their accounts, and they decrease by credit entries.  They normally have debit balances.  On the other hand, Liabilities, Equity, Revenue, and Income normally have credit balances.  They increase by credit entries to their accounts and decrease by debit entries.

If someone is engaged in a highly dangerous activity (sky diving or scuba diving), then normally assumption of risk waivers must be signed. Are those waivers always effective, or can you imagine a situation where liability could still be imposed

Answers

Answer:

The signing of assumption of risk waivers cannot serve as a substitute to the insurance of liability hence lawsuit can be filed

Explanation:

liability could be imposed by the person engaged in the dangerous activity if the handler of the activity exhibits some form of negligence or discriminatory behaviors or if the material used is substandard.

The signing of assumption of risk waivers cannot serve as a substitute to the insurance of liability hence lawsuit can be filed

The difference between a low-cost provider strategy and a focused low-cost strategy is Multiple choice question. the company's willingness to accept a lower profit margin. the uniqueness of the product or service. the size of the company's targeted buyer group. the length of the value chain.

Answers

Answer:

the size of the company's targeted buyer group.

Explanation:

Low cost strategies are used by sellers to gain more patronage of their products. It gives them competitive advantage of having low prices and this will in turn increase sales.

The low-cost provider strategy involves a reduction in prices of all the products a company sells in all locations while still making a profut. An appeal is made to a broad market to attract customers in mass.

The focused low-cost strategy on the other hand involves cost reduction in a targeted niche. It does not appeal to the broad market but rather to a specific customer profile.

So the difference between these two strategies is the size of the company's targeted buyer group.

An investment banker agrees to underwrite an issue of 10 million shares of stock for TWResearch, Inc. on a firm commitment basis. The investment banker pays $10.50 per share to TWResearch, Inc. for the 10 million shares of stock. It then sells those shares to the public for $11.20 per share.
If the investment bank can sell the shares for $9.75 per share, what is the profit (loss) to the investment banker?
a) Profit of $1,000,000.
b) Loss of $7,500,000.
c) Profit of $7,000,000.
d) Loss of $7,000,000.\
e) Loss of $1,000,000.

Answers

Answer: b) Loss of $7,500,000.

Explanation:

The total the investment bank paid when underwriting was:

= 10.50 * 10,000,000 shares

= $105,000,000

The total they then sell to the public is:

= 9.75 * 10,000,000

= $97,500,000

The profit is:

= Selling revenue from public - Buying cost from company

= 97,500,000 - 105,000,000

= -$7,500,000

Crane Company has old inventory on hand that cost $7500. Its scrap value is $10000. The inventory could be sold for $25000 if manufactured further at an additional cost of $7500. What should Crane do

Answers

Answer:

If the company reworks the units, income will increase by $7,500

Explanation:

Giving the following information:

The initial cost should not be taken into account.

Sell as-is:

Selling price= $10,000

Rework:

Additional cost= $7,500

Selling price= $25,000

We need to determine which option is most profitable.

Sell as-is:

Effect on income= $10,000

Rework:

Effect on income= 25,000 - 7,500= $17,500

If the company reworks the units, income will increase by $7,500

Hi guys, I need your help to give your opinions about this one.
Example:
The experts on your island warn of a possible tsunami, but opinions are divided.
a. A quarter of the experts (group A) assume that a tsunami will certainly come.
b. Three quarters of the experts (group B) assume that the tsunami will come with a 10 percent probability.
Which professionals (group A or group B) would you like to believe more and why? Give reasons for your answer. And what are the consequences of this decision for your actions? And how do you deal with the risks of a wrong decision?

Answers

I would believe group A more

because, as we know "Precaution is always better an cure"

If I stay more cautious about it, there are less chances of the tsunami to cause a severe harm. If I don't stay much cautious, according to group B, and in case if their prediction goes wrong, I'll be in serious danger.

I chose group A because

even if the tsunami ain't powerful enough, I would be glad I was careful enough for it and it'll help me in future if I face another situation like this again

The consequences if I chose group B would be :

well, if I would have chose B, I won't have taken any Precautions at all

I won't have been careful enough

and in case their prediction went wrong, I would have to suffer high losses.

I hope it helps.... Have a great time ahead!

eBookItem 7 The U.S. Department of Agriculture guarantees dairy producers that they will receive at least $1.00 per pound for butter they supply to the market. Below is the current monthly demand and supply schedules for wholesale butter (in millions of pounds per month). Market for Wholesale Butter Price (dollars per pound) Quantity of Butter Demanded (millions of pounds) Quantity of Butter Supplied (millions of pounds) $0.80 114 70 0.90 111 78 1.00 108 86 1.10 105 94 1.20 102 102 1.30 99 110 1.40 96 118 1.50 93 126 1.60 90 134 1.70 87 142 1.80 84 150 Instructions: Round your answer for price to 2 decimal places. Enter your answers for quantity as a whole number. a. What are the equilibrium price and quantity in the wholesale butter market

Answers

Answer:

The U.S. Department of Agriculture

a. The equilibrium price in the wholesale butter market is:

= $1.20.

b. The equilibrium quantity in the wholesale butter market is:

= 102 million pounds.

Explanation:

a) Data and Calculations:

Market for Wholesale Butter

Price (dollars     Quantity of Butter     Quantity of Butter

 per pound)         Demanded                  Supplied

                      (millions of pounds)    (millions of pounds)

$0.80                      114                                  70

 0.90                       111                                  78

  1.00                     108                                  86

   1.10                     105                                  94

 1.20                     102                                 102

 1.30                       99                                  110

 1.40                       96                                  118

 1.50                       93                                 126

 1.60                       90                                 134

 1.70                       87                                  142

 1.80                       84                                 150

b) The equilibrium price and quantity are the price and quantity at which the quantity of butter demanded in the wholesale butter market equals the quantity of butter supplied in the same market. At this price of $1.20 per pound, the total quantity demanded and supplied equaled 102 million pounds of butter.  At this price and quantity, both consumers and suppliers of butter in the wholesale market go home satisfied.

An automobile manufacturing firm decides to meet all its suppliers while planning to manufacture a new automobile that is a minor variant of an existing model in terms of design and performance. The firm wants to provide its loyal customers with automobiles at a low price without compromising on performance. According to authors Crawford and DiBenedetto, this new product falls into the category of ________.

Answers

Question Completion With Options:

O price redemptions

O repositionings

O price exemptions

O cost reductions

Answer:

According to authors Crawford and DiBenedetto, this new product falls into the category of ________.

O cost reductions

Explanation:

According to the declared intention of the automobile manufacturing firm, it is working at providing its loyal customers with low-priced automobiles that still maintain competitive performance.  Therefore, the new product falls into the category of cost reductions, which is a strategic move to ensure that costs do not drive away customers while the company rakes in huge revenue with increased sales volume.

Cashan Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 1.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows: August 24,500 units September 24,700 units October 24,600 units November 26,400 units December 24,500 units
The company wants to maintain monthly ending inventories of Jurislon equal to 30% of the following month's production needs. On July 31, this requirement was not met since only 10,400 kilograms of Jurislon were on hand. The cost of Jurislon is $4.00 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months.
The desired ending inventory of Jurislon for September is:_______.
a. $29,640
b. $29,520
c. $44,460
d. $44,280

Answers

Answer:

Option d ($44,280) is the correct option.

Explanation:

Given:

Maintain monthly inventory,

= 30%

October production,

= 24,600 units

Rate per kg,

= $4

For September month,

The desired ending units will be:

= [tex]Maintain \ monthly \ inventory\times Production \ in \ October[/tex]

= [tex]30 \ percent\times 24600[/tex]

= [tex]7380 \ units[/tex]

The required quantity will be:

= [tex]1.5 \ kg\times Desired \ ending \ units[/tex]

= [tex]1.5 \ kg\times 7380[/tex]

= [tex]11070 \ units[/tex]

hence,

The total price will be:

= [tex]Rate \ per \ kg\times Required \ quantity[/tex]

= [tex]4\times 11070[/tex]

= [tex]44280[/tex] ($)

Label each of the following statements true, false, or uncertain. Explain your choice carefully.
a. The present discounted value of a stream of returns can be calculated in real or nominal terms.
b. The higher the one-year interest rate, the lower the present discounted value of a payment next year.
c. Interest rates are normally expected to be constant over time.
d. Bonds are a claim to a sequence of constant payments over a number of years.
e. The yield curve normally slopes up.

Answers

Answer:

a. The present discounted value of a stream of returns can be calculated in real or nominal terms. TRUE

This is true because the present value of returns can be calculated using nominal rates which do not account for inflation, or using real rates which will account for inflation.

b. The higher the one-year interest rate, the lower the present discounted value of a payment next year. TRUE

Higher interest rates discount payments faster because they discount by dividing the payment so a higher rate would divide the payment more and lead to a lower present value.

c. Interest rates are normally expected to be constant over time. FALSE

Interest rates change over time in response to economic conditions.

d. Bonds are a claim to a sequence of constant payments over a number of years. TRUE

As a bondholder, you are entitled to payments over the life of the bond which means that it is a claim to constant payment over a number of years.

e. The yield curve normally slopes up. TRUE

The yield curve slopes upward to represent that interest rates increase in future.

Cala Manufacturing purchases land for $411,000 as part of its plans to build a new plant. The company pays $30,500 to tear down an old building on the lot and $45,087 to fill and level the lot. It also pays construction costs $1,726,400 for the new building and $108,976 for lighting and paving a parking area. Prepare a single journal entry to record the costs incurred by Cala, all of which are paid in cash.

Answers

Answer:

Date    General journal                               Debit           Credit

            Land                                             $486,587

            ($411,000+$30,500+$45,087)

            Land improvements                    $108,976

            Building                                        $1,726,400

                   Cash                                                            $2,321,963

Assume that a stock is expected to pay dividends at the end of Year 1 and Year 2 of $1.25 and $1.56, respectively. Dividends are expected to grow at a 5% rate thereafter. Assuming that ke is 11%, the value of the stock is closest to:___.
A. $22.3.B. $23.42.C. $24.55.

Answers

Answer:

C. $24.55

Explanation:

Calculation to determine what the value of the stock is closest to:

Value of the stock =($1.25 / 1.11) + [1.56/ (0.11 -0.05)] / 1.11

Value of the stock =[1.126126+(1.56/0.06)]/1.11

Value of the stock = $24.55.

Therefore the value of the stock is closest to:$24.55

Mr. Joseph has identified five different companies in which he is interested in investing, however, he has concerns over the economy and wants to invest in companies with the lowest debt exposure. The following is a list of data for the investments:

Company Total Assets Total Liabilities Net Income
A $10,000,000 $1,000,000 $200,000
B 20,000,000 3,000,000 1,000,000
C 6,000,000 4,000,000 250,000
D 15,000,000 6,000,000 1,600,000
E 30,000,000 22,000,000 4,000,000

Required:
Calculate the debt-to-equity ratio and rank the investments base on least risky to most risky.

Answers

Answer and Explanation:

The computation is shown below:

Company Total Assets (a)  Total Liabilities (b)   Net Income Debt to assets ratio (a÷b) Rank

A           $10,000,000           $1,000,000          $200,000       0.1 1

B           $20,000,000          $3,000,000           $1,000,000    0.15    2

C          $6,000,000             $4,000,000          $250,000      0.666667  4

D        $15,000,000             $6,000,000          $1,600,000      0.4           3

E        $30,000,000             $22,000,000       $4,000,000    0.733       5

Consider the following stock price and shares outstanding data: Stock Name Price per Share Shares Outstanding (Billion) Lowes $28.80 1.53 Wal-Mart $47.90 4.17 Intel $19.60 5.77 Boeing $75.00 0.79 If you are interested in creatinga value-weighted portfolio of these four stocks, then the percentage amount that you would invest in Lowes is closest to: A) 25% B) 11% C) 20.0% D) 12% E) 8%

Answers

Answer:

B) 11%

Explanation:

We need to determine the total amount to invest in all the stocks in the first place as computed below:

Lowes= $28.80*1.53=$44.06

Wal-Mart=$47.90*4.17=$199.74

Intel=$19.60*5.77 =$113.09

Boeing=$75.00*0.79=$59.25

Total amount invested in the portfolio=$44.06+$199.74+$113.09+$59.25

Total amount invested in the portfolio=$416.14

Lowes' portion of the portfolio=amount invested in Lowes/total portfolio amount

Lowes' portion of the portfolio=$44.06/$416.14

Lowes' portion of the portfolio=11%

You want to borrow $91,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,750, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 60-month APR loan

Answers

Answer:

5.784%

Explanation:

PV = $91000

PMT = -$1750

N = 60

FV = $0

Using the financial calculator to solve for I/Y

Interest yield = CPT I/Y(91000, -1750, 60, 0)

Interest yield = 0.00482

Interest yield = 0.482%

Highest rate APR = 0.482%*12

Highest rate APR = 5.784%

So, assuming monthly compounding, the highest rate i can afford on a 60-month APR loan is 5.784%.

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