In order to buy a new car, you finance $33,000 with no down payment for a term of five years at an APR of 6%. After you have the car for one year, you are in an accident. No one is injured, but the car is totaled. The insurance company says that before the accident, the value of the car had decreased by 25% over the time you owned it, and the company pays you that depreciated amount after subtracting your $500 deductible. How much equity have you built up after one year? Suggestion: Use the following formula for the equity built up after k monthly payments. (Round your answer to the nearest cent.) Equity = Amount borrowed × ((1 + r)k − 1) ((1 + r)t − 1) $
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
In order to buy a new car, you finance $33,000 with no down payment for a term of five years at an APR of 6%. After you have the car for one year, you are in an accident. No one is injured, but the car is totaled. The insurance company says that before the accident, the value of the car had decreased by 25% over the time you owned it, and the company pays you that
How much equity have you built up after one year? Suggestion: Use the following formula for the equity built up after k monthly payments. (Round your answer to the nearest cent.)
| Amount borrowed × ((1 + r)k − 1) |
| ((1 + r)t − 1) |
$
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