A bill for a cellphone specifies the cost as P 25,400 due at the end of 100 days but offers a 4% discount for cash in 24 days. What is the highest simple interest rate at which the buyer can afford to borrow money in order to take advantage of the discount?

Q: Remember that Molly has a $2500 down payment saved for this purchase. The dealer will take the $500…

A: The loan is the amount of money which would result in the amount of money borrowed and used for…

Q: You are planning to become a millionaire (i.e., save $1 M) over the next 30 years when you finally…

A: Time value of money The time value of money is the mostly accepted conjecture that there is more…

Q: Automobile repair shops typically recommend that their customers change their oil and oil filter…

A: Cost incurred will be calculated by the following formula:  Cost = miles driver/ total miles * cost…

Q: Felix is purchasing a brownstone townhouse for ​$2,100,000. To obtain the​ mortgage, Felix is…

A: The purchase cost of a home is $2100000The down payment is 16% of the purchase costNumber of payment…

Q: Mary takes out a loan for $1000 at a simple interest rate of 5% for a period of 3 years.  Calculate…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: 10,000 per year – at

A:

Q: Maria takes out a 30-year mortgage for $235,136 at an annual interest rate of 4.2%. How much does…

A: Given values PV = $235136r = 4.2% / 12 = 0.35% per monthn = 30 years * 12 months/year = 360 months

Q: Which of the following statements is true over the term of a fixed rate mortgage? Although monthly…

A: A mortgage is a formal arrangement wherein a bank, building society, or other lending institution…

Q: Give typing answer with explanation and conclusion You have opened your own word-processing…

A: The difference between the total revenue of a firm and all its cost that includes both explicit and…

Q: How can we compute the effective interest rate for any duration of time?

A: The effective interest rate refers to the rate of interest that is paid on an investment or loan or…

Q: A corporate bond paying $1,000 after 36 weeks earns 0.03% simple interest per week. How much did it…

A: The bond gives simple interest  A = P + (P*r*t)/100 A= future value  P= Present value  r= interest…

Q: John Doe received the following information in a mailed advertisement: "You could borrow $4,400 for…

A: here by calculating the effective interest we conclude the better opportunity which are as follow-

Q: Why is the interest 2% instead of 8%

A: Making decisions based on the present value of cash flows is a very practical strategy. When…

Q: Monique borrowed $1,118 for 12 weeks at a simple interest rate of 834%. How much money does she need…

A: It is given that Monique borrowed - $1,118; the simple interest rate is 8 3/4% or 8.75%. Also, it is…

Q: For a simple interest loan with interest rater (expressed as a decimal), the amount A due at the end…

A: Under simple interest, compounding is done on a fixed principal.

Q: consider yourself unable to pay this month's rent due to financial issues. A Money lending company…

A: * Annual interest rate = per month interest rate * 12 * Effective annual interest rate : Here we…

Q: Suppose 6-month Treasury bills are trading at a YTM of 1.6%, 12-month T-bills are trading at a YTM…

A: We are given the 6 month spot rate and 12 month spot rate as 1% and 2% respectively. The YTM of the…

Q: Sam has the option of purchasing a car for $30,000 or leasing it for a $375 payment made at the…

A: Given: Sam purchased a car for = $30,000 Leases it for = $375 per month Time period = 4 years The…

Q: Which investment will earn more money, a $3000 investment for 8 years at 5% compounded annually or a…

A: Step 1: Compare investments with different compounding methodsTo compare the $3000 investments:5%…

Q: A college student borrowed P20,000 from a bank for his tuition fee and promised to pay the amount…

A: Given: Initial amount=P 20000 New amount=P 19200 Interest= P 800

Q: If a bond with a normal value (N) of £100 and a coupon of 2.5% can be bought a a market price (P) of…

A: Given bond value = 100 Euros Counpon rate = 2.5 % = 2.5 % of 100 = 2.5 Euros Market price of bond =…

Q: A new home that costs $490,000 has presented itself. You want to make a 20% down payment and finance…

A: In the mention question, we are expecting an interest rate which is 4.375% but we are given quoted…

Q: The average median 2019 price of a home here in Columbia, SC was around $145,000. That price is not…

A: Price of house = $145000 Interest rate on loan = 3.92% The time period for loan = 30 years

Q: How long will it take for a money to quadruple itself if invested at 12% simple interest rate.

A: Future value is calculated by the following formula when there is a simple interest rate. FV = P(1 +…

Q: The net distributable estate of Mrs. Sim, who died intestate, is 5,000,000. The surviving relatives…

A: As per the rules of intestacy, a person who dies without leaving a will is called an intestate…

Q: Offering anything such as a premium rebate, premium discount, credit, service or anything of value…

A: In economics, an assets will have some value in the market at which it is offered to exchange…

Q: 35. If you know that you can afford a $500 per month car payment for the next 48 months, the…

A: Answer: option c (Be able to afford something less than a $24,000 car) Explanation: If a person can…

Q: A British government perpetuity pays £4 a year forever and is selling for £48. What is the interest…

A: An infinite stream of income is carried by a fixed income security known as a perpetuity. A…

Q: Find the level of a APS when the income is given as $930 the savings are $843

A: Generally in the question, Income is = $930 Savings are = $843 APS = ?

Q: For an $8 fee, a loan shark says that you can immediately borrow up to $400 for one month (For…

A: The interest rate that is stated or quoted on a loan, investment, or other financial instrument is…

Q: Which is better, depositing money with a compound annual interest (10%), and the calculation is…

A: Compound interest will be interest determined on the underlying head, which additionally…

Q: Determine the monthly mortgage payment for an $80,000 loan at 5% interest when it’s borrowed for 30…

A: The monthly installment will depend on the value of interest rate and duration of loan amount.  This…