Answer question 5 please. Thank you. 1. Assuming an interest rate of 5% per year over a period of 5 years on the money put in thebank, how much will A-Design have in its bank account at the end of the first year?2. Assuming an interest rate of 5% per year over a period of 5 years on the money put in thebank, calculate the simple interest and the compound interest earned by A-Design at theend of the fifth year?3. Assuming an interest rate of 5% per year compounded every 6 months over a period of 5years on the money put in the bank, how much will A-Design have in its bank account at theend of the fifth year?4. Assuming an interest rate of 5% per year compounded monthly over a period of 5 years onthe money put in the bank, how much will A-Design have in its bank account at the end ofthe fifth year?5. Compare the results of 2, 3 and 4 and comment. Mr. Don is the director of A-Design Inc., a federally incorporated company in Canada,specializing in the design and manufacturing of armrests for the wheelchair industry.A-Design invested $100,000 in a production machine, which has a useful life of 10 years, andput $10,000 in its bank account.In an attempt to improve company sales and profits, Mr. Don planned to offer two purchasingoptions to the clients of his companyOption 1:$250 deposit upfront$ 500 yearly fee for 5 yearsOption 2:$ 1300 deposit upfront$ 300 yearly fee for 3 years

The interest rate is the rate you will be charged on the equilibrium of your advance. This…

Mr. Don is the director of A-Design Inc., a federally incorporated company in Canada, specializing in the design and manufacturing of armrests for the wheelchair industry. A-Design invested $100,000 in a production machine, which has a useful life of 10 years, and put $10,000 in its bank account. In an attempt to improve company sales and profits, Mr. Don planned to offer two purchasing options to the clients of his company Option 1: $250 deposit upfront $ 500 yearly fee for 5 years Option 2: $ 1300 deposit upfront $300 yearly fee for 3 years

Mr. Don is the director of A-Design Inc., a federally incorporated company in Canada, specializing in the design and manufacturing of armrests for the wheelchair industry. A-Design invested $100,000 in a production machine, which has a useful life of 10 years, and put $10,000 in its bank account. In an attempt to improve company sales and profits, Mr. Don planned to offer two purchasing options to the clients of his company Option 1: $250 deposit upfront $ 500 yearly fee for 5 years Option 2: $ 1300 deposit upfront $300 yearly fee for 3 years

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.6P

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