Sammy and Ruby Loveapet wish to purchase a new car. The car will cost $48,000. Their lender will provide a loan at 11 percent compounded annually, and the loan will be paid off in three annual end-of-year payments over three years. The Loveapet’s will put a downpayment of $5,000 on the auto and wish to know the following: a. How much are their annual payments? b. How much will be paid to the lender for interest each year? c. What will their loan balance be at the end of each year?

Explanation:

Car Amount                                    48000

Down payment                                5000

Amount required for the Loan          43000

Amortization Schedule

Year    AmountinterstInstalmentTotal PaymentClosin Loan

1           43000473014333.33  19063.33        28666.67

2      28666.673153.3314333.33  17486.67                 14333.33

3      14333.33   1576.6714333.33  15910                            0

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.