Jaycee is seeking to purchase a motor vehicle for approximately $20,000 and requires finance for $18,000 in
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Question:
Option A: 3-year loan with end of month repayments of $900 at 15% per annum
Option B: 2-year loan with end of month repayments of $1300 at 18% per annum
Option C: 3-year loan with end of quarter repayments of $2700 at 15%
a) On what financial basis should Jaycee seek to differentiate and select between the different finance options?
b) Convert the payments involved in each of the three options to a common base and calculate the interest payments for each.
c) Advise Jaycee as to the preferred finance alternative.
Related Book For
Operations management processes and supply chain
ISBN: 978-0136065760
9th edition
Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra
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