Which is a better offer? Provide your computation to prove your answer. 1. You need 120,000 to start a new business venture. You considered the following ways of getting credit: A. Bank at 15% per annum B. Credit card at 3.25% month C. Friendly neigborhood at 15% in 3 months. Which is the best choice?

Which is a better offer? Provide your computation to prove your answer. 1. You need 120,000 to start a new business venture. You considered the following ways of getting credit: A. Bank at 15% per annum B. Credit card at 3.25% month C. Friendly neigborhood at 15% in 3 months. Which is the best choice?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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1. Which is a better offer? Provide your computation to prove your answer. Angelo wants to have an iphone worth 75,000 for cash or installment plan for 15,000 down payment and 3000 monthly amortization for 2 years. A financial institution offered angelo 75,000 payable in 24 months at a simple interest rate of 7%. 2. You need 120,000 to start a new business venture. You considered the following ways of getting credit: A. Bank at 15% per annum B. Credit card at 3.25% month C. Friendly neigborhood at 15% in 3 months. Which is the best choice?
What is the excel function and formula for this question? Off-The-Books Investment Firm, LLC, has offered you an investment it says will return to you $20,000 in 2 years. To get in, you'll need to make a $10,000 deposit to their receivables account and promise not to tell anyone about it. What is the annual return on this investment?
solve using the appropriate formulas show full workings and find the answer. DONT USE EXCEL TO SOLVE ANYTHING ONLY USE RELEVANT FORMULAS TO SOLVE AND SHOW ALL WORKINGS 5. You have $33,556.25 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $220,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal?
4. Consider a credit card with a balance of $7000. You wish to pay off the credit card, which has an APR of 17.99%, within 1 year. Calculate the following. Round your answer to the nearest cent, if necessary. a. Find the number of months you will need to pay the credit card if you pay $585 per month. b. Will you meet your goal and have the credit card paid in one year?
Use the present value and future value tables to answer the following questions. Time Value of Money - Principles of Accounting, Volume 2: Managerial Accounting | OpenStax A. If you would like to accumulate $2,400 over the next 5 years when the interest rate is 15%, how much do you need to deposit in the account? $_____ B. If you place $6,200 in a savings account, how much will you have at the end of 6 years with a 12% interest rate? $_____ C. You invest $7,000 per year for 11 years at 12% interest, how much will you have at the end of 11 years? $_____ D. You win the lottery and can either receive $760,000 as a lump sum or $60,000 per year for 19 years. Assuming you can earn 8% interest, which do you recommend and why? _____
2. Suppose you have a bank account into which you make $100 deposits each month. You find a bank account paying r 100% (r is a decimal rate) per month. You would like to save up for a $2,000 car down payment, which you would like to have in 15 months. What must the bank account pay in order for this to be accomplished?
valuate This time, you are now challenged to take this quiz. . Solve for the following problems and show your solution. 1. A lending institution charges its client Php 1,008,000 on a loan of Php 1.6M for 5 years and 3 months. What simple interest rate is being applied? R : 1, 008,000O (1, G00, a00)(24) 1.008,000 8, 400 ,000 o. 12 12 %u
Please provide the steps to solving this problem using a financial calculator: You just opened a brokerage account, depositing $3,500. You expect the account to earn an interest rate of 9.652%. You also plan on depositing $4,500 at the end of years 5 through 10. What will be the value of the account at the end of 20 years, assuming you earn your expected rate of return?
Example : You want to buy a $18,500 car. The company is offering a 3% interest rate for 4 years. What will your monthly payments be? I will do this one for you and show you how I want you to describe your formula/inputs in excel if that is how you choose to go about solving problems 2 through 5 - which I strongly recommend. If you choose to perform the calculations by hand show the formula used with values. Excel: Formula used: PMT Rate input: .03/12 NPer input: 4*12 Pv input: 18500 Answer : $409.49 per month 2. You want to buy a $22,500 car. The company is offering a 4% interest rate for 5 years. a.What will your monthly payments be? Round to the nearest cent .b. Assuming you pay that monthly amount for the entire 5 years, what is the total amount of money you will pay during those 5 years for the car? c.How much interest will you pay during those 5 years?
COMPARING APR. You are offered two credit cards. The first is a credit card (CARD A) that has an APR of 24.99%. You are also offered a card (CARD B) that has 21.99% interest, but charges $100 annually. Which card that was offered is a better card? Show work.
Solve the following problem. Use Excel, financial calculator, or PV and FV Tables. Show your work with the formulas and figures inserted in them. Hamad is saving to establish a small business. He deposits a fixed amount of money every month in a bank account that pays a nominal interest rate of 12 percent. If this account pays interest every month, then how much he should save at the end of every month to have AED 50,000 in his account after 5 years.
SUBJECT: ENGINEERING ECONOMICS (a) Identify the Given and the Unknown or what is being asked in the problem (b)Provide the formula to be used (c)Show the complete solution. The final answer is already provided. You plan to deposit P100 into a savings account at the end of each month for the next 5 years. a.)At 3% compounded monthly, how much will you have accumulated at the end of 5 years? b.)How much difference would it make if the payments were made at the beginning of the month rather than at the end? Answer: a.) F = P6,464.67, b.) F value difference = P196.63

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