Question: which is better and by how much? $ 1 0 k now or $ 5 0 k zero interest loan with 5 yr annual payment?

which is better and by how much? $10k now or $50k zero interest loan with 5 yr annual payment? 7% opportunity cost

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Hi, please need help with this, notes state to Draw Time Lines & Show Calculator Work. Thank you. Time Value of Money-Additional Practice Draw Time Lines & Show Calculator Work!! 1. What amount...

Q:

Please show your work! 6) What is the future value of the following cash flows at the end of year 3 if the interest rate is 7.25%? The cash flows occur at the end of each year. Year 1: $6800 Year 2:...

Q:

*please show the detail with excel. not hand writingand show the formula plz and i already done question(a) with excel below for you, you need to solve i) ii) iii) iiii) b) and c) if the answer is...

Q:

Can anyone help me with this or already have the solution this whole Finance Workbook for Madura Personal Finance, Third Edition by Jeff Madura BUILDING YOUR OWN FINANCIAL PLAN WORKBOOK INDEX Chapter...

Q:

I need chapters 18, 19, 20, and 21 for the workbook for Personal Finance by Madura!! Please help!!! Personal Finance, Fifth Edition by Jeff Madura BUILDING YOUR OWN FINANCIAL PLAN WORKBOOK INDEX...

Q:

BLC Inc. is a medium-sized manufacturing company based in the UK. The company operates mainly in the London area and is based in Peterborough. At a recent board meeting, the company decided to expand...

Q:

I need Chapter 2 & 3 finished. Chapter 4 & 5, Chapter 6 & 7, & Chapter 8. Some of this is completed, but it isn't 100% finished. Let me know if you can get to it. Personal Finance, Fifth Edition by...

Q:

Hi. I need Chapter 11 part 1-4 Let me know. Thanks! (it wont letme add more than $8, but I will give $12+ tip) Personal Finance, Fifth Edition by Jeff Madura BUILDING YOUR OWN FINANCIAL PLAN WORKBOOK...

Q:

Therefore increasing the monetary base is a way for the government to get a loan that it will never have to repay and doesn't pay any interest. Indeed, one way to write down the government's budget...

Q:

Due Sunday, 11/20: Problems from Zimmerman text: 2-11, 2-44, Case 2-3, 7-7, and 7-20 Chapter Two The Nature of Costs Chapter Outline A. Opportunity Costs 1. Characteristics of Opportunity Costs 2....

Q:

The payroll summary for EVB Inc. for the period August 3 - 10 is as follows: Factory Employees Sales and Admin. Employees Total Gross Earnings $80,000 $25,000 $105,000 Withholding and deductions:...

Q:

About 40% of new single-family homes completed in the United States during 2007 were heated with electricity. For a randomly selected sample of 20 new singlefamily homes completed during that year...

Q:

Suppose you won $ 1 5 , 0 0 0 . 0 0 on a game show and decided to invest that money rather than spend it . The table below shows the value of the account for several years. \ table [ [ Time ( years )...

Q:

Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $ 1 , 1 0 0 per unit; variable cost = $ 3 2 0 per unit; fixed costs = $ 4 . 8 3 million;...