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deal of 12 equal monthly repayments with no interest charges. If Mega Electronics values money at 8.4% per year compounded monthly, what cash amount should Mega Electronics be willing to accept instead of the no-interest plan? (b) Alternatively,GrandGuy soffers the same no-interest planbut require a10% deposit and an establishment fee of $30 both of which are payable immediately. GrandGuys also charges an account keeping fee of $2.95 per month due with each payment. What cash amount should GrandGuys be willing to accept with its no-interest plan on the speaker package ticketed at $3,600? In this case you can assume GrandGuys value money at 7.2% per year compounded monthly. (c) WhichshopoffersabetterdealforJimandJane? Explainbriefly(2-3sentences).

deal of 12 equal monthly repayments with no interest charges. If Mega Electronics values money at 8.4% per year compounded monthly, what cash amount should Mega Electronics be willing to accept instead of the no-interest plan? (b) Alternatively,GrandGuy soffers the same no-interest planbut require a10% deposit and an establishment fee of $30 both of which are payable immediately. GrandGuys also charges an account keeping fee of $2.95 per month due with each payment. What cash amount should GrandGuys be willing to accept with its no-interest plan on the speaker package ticketed at $3,600? In this case you can assume GrandGuys value money at 7.2% per year compounded monthly. (c) WhichshopoffersabetterdealforJimandJane? Explainbriefly(2-3sentences).

Essentials Of Investments
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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Jim and Jane would like to purchase a home theatre system for their newly renovated home. After extensive research online and visiting at a few local electronics stores, they would like to purchase the newly released speaker package for $3,600. (provide breif and step by step solution for the following problem also provide the formulas) (a) Mega Electronics are currently offering a deal of 12 equal monthly repayments with no interest charges. If Mega Electronics values money at 8.4% per year compounded monthly, what cash amount should Mega Electronics be willing to accept instead of the no-interest plan? (b) Alternatively,GrandGuy soffers the same no-interest planbut require a10% deposit and an establishment fee of $30 both of which are payable immediately. GrandGuys also charges an account keeping fee of $2.95 per month due with each payment. What cash amount should GrandGuys be willing to accept with its no-interest plan on the speaker package ticketed at $3,600? In this case you can assume GrandGuys value money at 7.2% per year compounded monthly. (c) WhichshopoffersabetterdealforJimandJane? Explainbriefly(2-3sentences).
Transcribed Image Text:Jim and Jane would like to purchase a home theatre system for their newly renovated home. After extensive research online and visiting at a few local electronics stores, they would like to purchase the newly released speaker package for $3,600. (provide breif and step by step solution for the following problem also provide the formulas) (a) Mega Electronics are currently offering a deal of 12 equal monthly repayments with no interest charges. If Mega Electronics values money at 8.4% per year compounded monthly, what cash amount should Mega Electronics be willing to accept instead of the no-interest plan? (b) Alternatively,GrandGuy soffers the same no-interest planbut require a10% deposit and an establishment fee of $30 both of which are payable immediately. GrandGuys also charges an account keeping fee of $2.95 per month due with each payment. What cash amount should GrandGuys be willing to accept with its no-interest plan on the speaker package ticketed at $3,600? In this case you can assume GrandGuys value money at 7.2% per year compounded monthly. (c) WhichshopoffersabetterdealforJimandJane? Explainbriefly(2-3sentences).
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