A cell phone company offers two different plans. Plan A costs $87 per month for unlimited talk and text. Plan B costs $0.20 per minute plus $0.10 per text message sent. You need to purchase a plan for your teenage sister. Your sister currently uses 1,750 minutes and sends 1,700 texts each month. 1. What is your sister’s total cost under each of the two plans? 2. Suppose your sister doubles her monthly usage to 3,500 minutes and sends 3,400 texts. What is your sister’s total cost under each of the two plans? Plans Total Cost 1. Plan A Plan B 2. Plan A Plan B

Walter is a used car dealer.  He has the chance to buy a used car that he thinks he can resell for $6,400.  If Walter needs a 30% markup on selling price, what price can he pay? View keyboard shortcuts

You have decided to purchase a new car that costs $44,500. You need to make a 20% down payment, then you will finance the rest with a loan. Your bank will extend you a car loan where the APR is 4.32% and you will make monthly payments over five years. What is the monthly payment on the vehicle? O $593.33 O $660.78 O $512.79 O $825.98

Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $35,000. The object is to save on horse transporter rentals. Marsha had been renting a transporter every other week for $200 per day plus $1.00 per mile. Most of the trips are 80 or 100 miles in total. Marsha usually gives the driver, Joe Laminitis, a $40 tip. With the new transporter she will only have to pay for diesel fuel and maintenance, at about $0.45 per mile. Insurance costs for Marsha’s transporter are $1,200 per year. The transporter will probably be worth $15,000 (in real terms) after eight years, when Marsha’s horse Spike, will be ready to retire. Assume a nominal discount rate of 9% and a 3% forecasted inflation rate. Marsha’s transporter is a personal outlay, not a business or financial investment, so taxes can be ignored. Calculate the NPV of the investment.

You are trying to decide between two mobile phone carriers. Carrier A requires you to pay​$185 for the phone and then monthly charges of​ $54 for 24 months. Carrier B wants you to pay ​$105 for the phone and monthly charges of ​$68 for 12 months. Assume you will keep replacing the phone after your contract expires. Your cost of capital is 3.9%​APR, compounded monthly. Based on cost​ alone, which carrier should you​ choose? The EAA for plan A isThe EAA for plan B isThe EAA for plan C is

An electronics retailer is offering a deferred payment plan. A customer can buy a laptop today for no money down, followed by 12 monthly payments of $145, with the first payment due in 1 year from date of purchase. If the retailer is building in a rate of return of 12% compounded monthly, what is the purchase price of the laptop that was financed?

You plan to buy the new iPhone when it is released 6 months from now. You believe it will sell for $999 dollars. You know that you will need to cut back on other expenditures to ensure you have the money ready upon release and decide to start skipping some of your daily Starbucks purchases to afford the new phone. Your usual Starbucks order costs $5. The money you save will earn an interest rate of .5% a month. How many Starbucks coffees each month do you need to sacrifice in order to have saved the $999 for your new phone?

A health insurance policy pays 80 percent of physical therapy costs after a deductible of $260. In contrast, an HMO charges $18 per visit for physical therapy. How much would a person save with the HMO if he or she had 10 physical therapy sessions costing $65 each? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.) Savings with HMO

Ernie Bilko has a business idea. He wants to rent an abandoned gas station for just the months of November and December. He will convert the gas station into a drive-through Christmas wrapping station. Customers will drive in, drop off their gifts, return the next day, and pick up their wrapped gifts. He needs $338,500 to rent the gas station, purchase wrapping paper, hire workers, and advertise. If he borrows this amount at  6 and 1/2%  interest for those two months, what size lump sum payment will he have to make to pay off the loan? (Round your answer to the nearest cent.)

Vijay