A business has four options to pay for equipment to improve work. Match the scenario in relation to the maximum amount of revenue. An installment loan of $50,000 with 1. best option APR of 18% over 30 months and earn an extra $75,000 in revenue. Pay $50,000 cash and earn an 2. second best option extra $60.000 in revenue. An installment loan of $50,000 with 3. third best option APR of 16% over 36 months and earn an extra $80,000 in revenue. An installment loan of $50O,000 with 4. fourth best option APR of 20% over 24 months and earn an extra $70,000 in revenue.

A business has four options to pay for equipment to improve work. Match the scenario in relation to the maximum amount of revenue. An installment loan of $50,000 with 1. best option APR of 18% over 30 months and earn an extra $75,000 in revenue. Pay $50,000 cash and earn an 2. second best option extra $60.000 in revenue. An installment loan of $50,000 with 3. third best option APR of 16% over 36 months and earn an extra $80,000 in revenue. An installment loan of $50O,000 with 4. fourth best option APR of 20% over 24 months and earn an extra $70,000 in revenue.

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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Loan calculations • An engineer wants to purchase a used car for $15,000. The dealer offered to finance the deal at 6.45% APR for 4 years with a 6% downpayment. Engineer's bank will provide a loan at 7.8% for 3 years, but want a 7% downpayment. a. Calculate the required downpayment and monthly payment for each loan option (Assume monthly compounding and monthly loan payments.) b. What additional factors should an engineer consider when deciding which is the best deal for her/his?
A small company borrows $75,000 at 5% compounded monthly. The loan is due in 5 years. How much interest will the company pay? Write your answer in the text box below and submit your work at the last question.
A design studio received a loan of $8,950 at 5.60% compounded semi-annually to purchase a camera. If they settled the loan in 2 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? Round to the nearest cent b. What was the size of the interest portion on the first payment? ← a acer SUBMIT QUESTION SAVE PROGRESS V SUBMIT ASSIC
Manual Solving A man has a loan of 500,000 for 10 years at 6.5% annually with annual payments. His payments are 45,000 for the first 5 years and X for the next 5 years. Find X. Construct the amortization schedule for this loan.*
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A design studio received a loan of $6,750 at 5.80% compounded semi-annually to purchase a camera. If they settled the loan in 3 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? b. What was the size of the interest portion on the first payment? c. What was the balance of the loan at end of the first year? d. What was the size of the interest portion on the last payment? ANSWER EVERYTHING TO THE NEAREST CENT
Problem #2. Your financed a $30,500 kitchen renovation project with 4.75% add-on interest installment loan for 24 month. The loan required 15% down payment. Show your work for all parts of the problem. (a) What is the finance charge on the loan? (b) What are the monthly payments? (c) What annual percentage rate is being charged on the loan?
When purchasing a $100,000 house, a borrower is comparing two loan alternatives. The first loan is an 80% loan at 4% with monthly payments of $591.75 for 15 years. The second loan is 90% loan at 5% with monthly payments of $526.13 over 25 years. What is the incremental cost of borrowing the extra money assuming the loan will be held for the full term? O 6.50% O 13.21% O 7.20% O 13.70%
A company vehicle is being purchased for $55,000 and the business will put $5,000 down.If the company takes out a 5-year loan at 4%, what will the monthly principal and interestpayment be? Create an amortization schedule. All calculated in excel?
A landscape architect accrued $7,883.57 in credit card debt. If the architect makes a monthly payment of $400 (and makes no additional charges on the account), how many months will it take to repay the debt if the annual interest rate on the credit card is 19.6%? (Round your answer up to the nearest month.)
A local restaurant decides to take out an amortized loan as follows: Amount of loan = $50,000; Interest rate = 8%; Term = 5 years. After two instalments the borrower decides to pay off the loan. What is the payoff amount? a. $32,273 b. $22,331 c. $31,543 d. $31,670 Accrual basis in loan pricing refers to a. the number of days used to calculate interest b. the effective yield c. the method of accounting used to record the loans d. none of the above Which of the following accurately describes the other real estate owned that appears as an asset on the bank’s balance sheet? a. includes premises and equipment b. includes only the land owned by the bank. c. usually represents property obtained through foreclosure on problem loans d. is limited to the equipment owned by the bank Collateral does not reduce the risk of a loan per se, because a. it is not part of the loan agreement b. the risk of a loan is determined by the borrower’s willingness and ability to repay…

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