All categories

2 years ago

Imagine you are making a $1000 purchase with different payment options. Which of the following

1 answer:

4 0

The payment option that pays the LEAST is <u>B. B. 10% APR, with 12 monthly payments,</u> as it pays back a total of $1,008.33, for borrowing $1,000.

<h3>How to calculate payment options:</h3>

Payment options can be computed using an online finance calculator as follows:

The option that pays the least total cost should be chosen.

<h3>Data and Calculations:</h3>

Loan payment = $1,000

A. 8% APR, no payments for the first 6 months, then 6 monthly payments:

Amount after 6 months = $1,040 ($1,000 + $1,000 x 0.08 x 1/2)

N (# of periods) = 1

I/Y (Interest per year) = 8%

PV (Present Value) = $1,040

FV (Future Value) = $0

<u>Results:</u>

PMT = $174.49

Sum of all periodic payments = $1,046.93 ($174.49 x 6)

Total Interest =$46.93 ($40 + $6.93)

B. 10% APR, with 12 monthly payments:

N (# of periods) = 1

I/Y (Interest per year) = 10%

PV (Present Value) = $1,000

FV (Future Value) = $0

<u>Results:</u>

PMT = $84.03

Sum of all periodic payments = $1,008.33

Total Interest = $8.33

C. 12% APR, with 6 monthly payments:

N (# of periods) = 1

I/Y (Interest per year) = 12%

PV (Present Value) = $1,000

FV (Future Value) = $0

<u>Results:</u>

PMT = $168.33

Sum of all periodic payments = $1,010.00

Total Interest $10.00

Thus, the payment option that pays the LEAST is <u>Option B</u>.

Learn more about periodic payments at brainly.com/question/24244579

You might be interested in

In 2019, Brazil's trade deficit as share of GDP widened. In that year, government deficit as share of GDP declined and investmen

ad-work [718]

Answer:

The private savings as a share of the GDP must have declined.

Explanation:

according to the twin deficit hypothesis:

budget deficit = savings + trade deficit - investments

the government deficit as a share of GDP declined and investment as a share of GDP remained constant that means that the savings should decline.

7 0

4 years ago

Aharon exercises 10 stock options awarded several years ago. The following information pertains to the options: (1) each option

ira [324]

Answer: Cost to purchase the options on the exercise date = $1000

Explanation:

Given:

Stock options awarded = 10

Right to buy shares = 10

Exercise price = $10

We'll compute the cost as follow:

Cost to purchase the options on the exercise date = Stock options awarded × Right to buy shares × Exercise price

Cost to purchase the options on the exercise date = 10×10×10

Cost to purchase the options on the exercise date = $1000

<u><em>Therefore, the correct option is (d)</em></u>

6 0

4 years ago

Other things held constant, which of the following events is most likely to encourage a firm to increase the amount of debt in i

sineoko [7]

Answer:

The correct answer is letter "D": The corporate tax rate increases.

Explanation:

In case the government decides to increase the corporate tax rates, companies will have to invest more in their production process so the output will be higher as long as the revenues so that extra profit could cushion the increase in the levies. However, <em>if companies do not have enough reserves to invest, they are likely to request loans</em> that will increment the firm's debt in the long run.

6 0

3 years ago

A manufacturer wishes to make tee-shirts for the band Dixie Chicks. They sell for $11 each. She must deliver all the tee-shirts

love history [14]

Answer:

44,000*n dollar

Explanation:

If a machine produce 200 per day at the rate of 11 dollars each and she has 20 days. This implies that each machine will produce 44,000 dollar

Therefore for n machine, she will have money m of 44,000*n dollar

8 0

3 years ago

Donna is a very smart accountant. She is friendly and outgoing but sometimes she gets distracted and does not turn in her work o

Pachacha [2.7K]

Donna is lacking <u>motivation</u>.

The reason is Donna having a friendly quality, if you having this quality then you can build a trust in your leadership. and also Donna is a very smart personality which ensures it's positivity and dependability.

6 0

3 years ago