Monthly loan payments Tim Smith is shopping for a used car. He has found one<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:o ffice" />

priced at $4,500. The dealer has told Tim that if he can come up with a down payment

of $500, the dealer will finance the balance of the price at a 12% annual rate

over 2 years (24 months).

a. Assuming that Tim accepts the dealer�s offer, what will his monthly (end-ofmonth)

payment amount be? $182.74

b. Use a financial calculator or Equation 4.15a (found in footnote 9) to help you

figure out what Tim�s monthly payment would be if the dealer were willing to

finance the balance of the car price at a 9% annual rate.

Ardmore farm and seed has an inventory dilemma. they have been selling a brand of very popular insect spray for the past year. they have never really analyzed the costs incurred from ordering and holding the inventory and currently fave a large stock of the insecticide in the warehouse. they estimate that it costs $25 to place an order, and it costs $0.25 per gallon to hold the spray. the annual requirements total 80,000 gallons for a 365 day year.a. assuming that 10,000 gallons are ordered each time an order is placed, estimate the annual inventory costs.b. calculate the eoq.c. given the eoq calculated in part b., how many orders should be placed and what is the average inventory balance? d. if it takes seven days to receive an order from suppliers, at what inventory level should ardmore place another order?

Until recently, hamburgers at the city sports arena cost $4.70 each. the food concessionaire sold an average of 13 comma 000 hamburgers on game night. when the price was raised to $5.40, hamburger sales dropped off to an average of 6 comma 000 per night. (a) assuming a linear demand curve, find the price of a hamburger that will maximize the nightly hamburger revenue. (b) if the concessionaire had fixed costs of $1 comma 500 per night and the variable cost is $0.60 per hamburger, find the price of a hamburger that will maximize the nightly hamburger profit.

Gif the federal reserve did not regulate fiscal policy, monitor banks and provide services for banks, what would most likely be the economic conditions to transact business in the u.s.? the economy would primarily be based on a barter system rather than a fiat system. there would be no discrimination in lending by local banks. the economy would be less efficient and transactions most likely more costly.