You have choice when subscribing to our magazine for four years: you can Option A: pay $100 now for a four year subscription, Option B: pay $30 at the end of each year for four years, Option C: pay $50 today and $60 again three years from today. Which is the best deal for you, the subscriber, if the interest is 10% yearly?

You have choice when subscribing to our magazine for four years: you can Option A: pay $100 now for a four year subscription, Option B: pay $30 at the end of each year for four years, Option C: pay $50 today and $60 again three years from today. Which is the best deal for you, the subscriber, if the interest is 10% yearly?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Lindsey plans to deposit her annual bonus into a savings account that pays 3% interest compounded annually. The size of her bonus increases by $1000 each year, and the initial bonus amount she will deposit at the end of year 1 is $2,500. a) Determine how much will be in the account immediately after the 6th deposit. b) What's the future value if she only plans to deposit her annual bonus for 8 years (the last deposit is at the end of year 8)? c) What's the future value if she only plans to deposit her annual bonus for 8 years (the last deposit is at the end of year 8), but also plans to skip the deposits at the end of years 3 and 6?
Please try to solve in 20 minute Your client plans to invest $2000 at the end of each year. The rate of return on the investment is 7.5% compounded annually. What will be the value of the investment at the end of 12 years?
You just accepted an offer from XYZ Petrochemical Company in Louisiana. As a sign up bonus, the XYZ will deposit $10,000 in a retirement account for you which generates 12% return annually. In addition, the company deposits $5,000 every year in the same account, if you stays with XYZ. How much money will be accumulated in this account if you decide to retire 40 years from now?
The nominal interest rate is 14% compounded semiannually. What amount will need to be deposited every six months to be able to have enough money to pay three annuity payments of $20,000 for three years beginning at the end of year seven? The deposits begin now and continue every six months until six deposits have been made. The amount to be deposited every six months is $ (Round to the nearest dollar.)
Please answer very soon will give rating surely
You are saving up for a down payment on a house. You will deposit $600 a month for the next 24 months in a money market fund. How much will you have for your down payment in 24 months if the fund earns 12% APR compounded monthly?
You plan to deposit $100 at the end of every quarter (3 months) for 8 years starting at the end of month 3. Then after leaving the money in the account for several years, you plan to withdraw everything 15 years from today. How much is available to withdraw at the end of year 15 if the account pays a nominal annual rate of 8% compounded quarterly (every 3 months)? Question 4 Part C: Provide the final value for withdrawal at the end of year 15. Enter your answer in the form: 12345.67
Question 3 You are looking at purchasing a new computer for your four-year undergraduate program. Brand 1 costs $4,040 now, and you expect it will last throughout your program without any upgrades. Brand 2 costs $2,440 now, and will need an upgrade at the end of two years, which you expect to be $1,725. With an 8% annual interest, compounded monthly, which is the less expensive alternative, if they provide the same level of service and will both be worthless at the end of the four years? [NOTE: In general and unless asked for otherwise, comparisons of project should be conducted in present worth dollars] Which Brand is preferred (enter either '1' or '2')? How much will you save by purchasing your preferred brand over the other? (Round your answer to the nearest dollar and enter it as a positive number) $
Assuming I deposit my signing bonus of $36,000 at 9% APR, compounded annually, how much will I have upon retirement in 20 years?
Compound interest is a very powerful way to save for your retirement. Saving a little and giving it time to grow is often more effective than saving a lot over a short period of time. To illustrate this, suppose your goal is to save $1 million by the age of 70. What amount of money will be saved by socking away $3,038 per year starting at age 23 with a 7% annual interest rate. Will you achieve your goal using the long-term savings plan? What amount of money will be saved by socking away $20,406 per year starting at age 48 at the same interest rate? Will you achieve your goal using the short-term savings plan? Click the icon to view the interest and annuity table for discrete compounding when i = 7% per year. The future equivalent of the long-term savings plan is $. (Round to the nearest dollar.) C
An entrepreneur needs thousand of dollars to launch the global expansion of his software business. I have agreed to lend him the money today (n=0) at an interest rate of 8% compounded quarterly. I required that the loan be repaid in eight annual payments starting at Year 4 with a $20K payment. Subsequent payments will decrease by $1K each year thereafter. (1) What is the present value of the money being borrowed? (2) Convert your Present Value to Annual Payment. Use one of the following formulas. Show complete solution.
Using the formula, not the table