Which is a better offer? Provide your computation to prove your answer. Angelo wants to have an iphone worth 75,000 for cash or installment plan for 15,000 down payment and 3000 monthly amortization for 2 years. A financial institution offered angelo 75,000 payable in 24 months at a simple interest rate of 7%. 2. You need 120,000 to start a new business venture. You considered the following ways of getting credit: A. Bank at 15% per annum B. Credit card at 3.25% month C. Friendly neigborhood at 15% in 3 months. Which is the best choice?
Which is a better offer? Provide your computation to prove your answer. Angelo wants to have an iphone worth 75,000 for cash or installment plan for 15,000 down payment and 3000 monthly amortization for 2 years. A financial institution offered angelo 75,000 payable in 24 months at a simple interest rate of 7%. 2. You need 120,000 to start a new business venture. You considered the following ways of getting credit: A. Bank at 15% per annum B. Credit card at 3.25% month C. Friendly neigborhood at 15% in 3 months. Which is the best choice?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 28P
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1. Which is a better offer? Provide your computation to prove your answer.
Angelo wants to have an iphone worth 75,000 for cash or installment plan for 15,000 down payment and 3000 monthly amortization for 2 years.
A financial institution offered angelo 75,000 payable in 24 months at a simple interest rate of 7%.
2. You need 120,000 to start a new business venture. You considered the following ways of getting credit:
A. Bank at 15% per annum
B. Credit card at 3.25% month
C. Friendly neigborhood at 15% in 3 months.
Which is the best choice?
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