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lina2011 [118]
3 years ago
10

You are considering two ways of financing a spring break vacation. you could put it on your credit​ card, at 17 % ​apr, compound

ed​ monthly, or borrow the money from your​ parents, who want an interest payment of 9 % every six months. which is the lower​ rate?
Business
1 answer:
shutvik [7]3 years ago
7 0
<span>Credit card has slightly lower interest rate. Let's take a look at both interest rates for 1 year and see what costs more. First, the credit card at 17% apr compounded monthly. Each month, 17%/12 interest will be taken. The total interest over the year will be (1 + 0.17/12)^12 = 1.183891728 times the original debt. Now let's look at the loan from the parents. Over 1 year, you'll be accumulating 2 interest payments. The formula for the year will be (1 + 0.09)^2 = 1.1881 Comparing the overall rate between the credit card and the parents, the credit card is slightly lower than the parents.</span>
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How will you save money by buying a franchise?
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B. You can get a volume discount on your products.

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Part I :

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3 years ago
Longley Trucking is issuing a 20-year bond with a $2,000 face value tomorrow. The issue is to pay an 8% coupon rate, because tha
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The price of the bond Longly will receive is equal to the present value of 20 annual coupon payment plus the present value of $2,000 face value repayment in 20 years time; with the two streams of cash flow discounting at the market rate at the date of issuing 9%; which is calculated as:

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7 0
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Therefore Below what stock price level would you get a margin call will be $46.43

7 0
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