Question: Tony is offering two repayment plans to Phil for a
Tony is offering two repayment plans to Phil for a long overdue loan. Offer 1 is a visit from an enforcer and the debt due in full at once. Offer 2 is to pay back $3,900 per year at 20% interest rate until Tony pays off the loan principal. Phil owes Tony $15,000. How long will it take for Phil to pay off the loan if he takes Offer 2?
Answer to relevant QuestionsYour grandfather will sell you a beach front property for $72,500. He says the price is firm whenever you can pay him cash. You know that your finances will only allow you to save $5,000 a year and that you can make 8% on ...A lottery ticket states that you will receive $250 every year for the next ten years.a. What is the value of the winning lottery ticket in present value if the discount rate is 6%, and it is an ordinary annuity?b. What is ...The Corner Bar & Grill is in the process of taking a five-year loan of $50,000 with First Community Bank.The bank offers the restaurant owner his choice of three payment options:1) Pay all of the interest (8% per year) and ...Let’s follow up with Sam Hinds, the dentist, from Chapter 4 and his remodeling project (Problem 12). The cost of the equipment for the project is $18,000, and the purchase will be financed with a 7.5% loan over six years. ...From 1991 to 2000, the U.S. economy had an annual inflation rate of around 2.93%. The historical annual nominal risk-free rate for this same period was around 5.02%. What is the real interest rate using the approximate ...
Post your question