It is March 2024, and my older son needs braces. The orthodontist has quoted a price...
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It is March 2024, and my older son needs braces. The orthodontist has quoted a price of $4500 for the braces. Of this price, $1500 will be covered by my insurance. For the remaining cost, I have been offered two payment options: Option #1: an initial payment in March 2024 of $1000, with the rest of the money split over 10 equal monthly payments, starting in April 2024. Option #2: a 2% discount if I pay all of my portion of the cost in March 2024. That is, if I pay the entire balance up front, I only need to pay 98 cents for every dollar owed. Notation: P is my initial payment under option #1, C is my monthly payment under option #1, and P2 is my payment under option #2. r is the monthly discount rate. Use this notation when answering the questions. (a) (2 points) Show how to calculate P, C, and P2. NOTE: You must show your work, and you do not need to compute the final numbers to get full credit. It is March 2024, and my older son needs braces. The orthodontist has quoted a price of $4500 for the braces. Of this price, $1500 will be covered by my insurance. For the remaining cost, I have been offered two payment options: Option #1: an initial payment in March 2024 of $1000, with the rest of the money split over 10 equal monthly payments, starting in April 2024. Option #2: a 2% discount if I pay all of my portion of the cost in March 2024. That is, if I pay the entire balance up front, I only need to pay 98 cents for every dollar owed. Notation: P is my initial payment under option #1, C is my monthly payment under option #1, and P2 is my payment under option #2. r is the monthly discount rate. Use this notation when answering the questions. (a) (2 points) Show how to calculate P, C, and P2. NOTE: You must show your work, and you do not need to compute the final numbers to get full credit.
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Related Book For
Operations Management
ISBN: 978-0071091428
4th Canadian edition
Authors: William J Stevenson, Mehran Hojati
Posted Date:
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