A weekly business magazine offers a 1-year subscription for $24.99 and a 4-year subscription for $85. If you thought you would read the magazine for at least the next 4 years, and consider 18% as a minimum rate of return, which way would you purchase the magazine: With four 1-year subscriptions or a single 4-year subscription?

practice

You have choice when subscribing to our magazine for four years: you can Option A: pay $95 now for a four year subscription, Option B: pay $30 at the end of each year for four years, Option C: pay $50 today and $60 again three years from today. Which is the best deal for you, the subscriber, if the interest is 10% yearly?

You need to borrow $750,000 to purchase a new house. JRE bank will loan you the money at an APR of 4.3% (monthly compounding) and a 15 year term (i.e. 180 monthly payments in total). After making exactly 27 payments, what is the total amount of interest you will have paid (rounded to the nearest dollar)? The total amount of interest is closest to: A. $63,309 OB. $84,140 c. $68,709 OD. $70,734 ...

You decide to do some remodeling in the kitchen. Your parents agree to lend you the money, but you insist on paying them interest. The agreement is that they will lend you $6000.00 at a simple interest rate of 1.5% per year. In how many months will the interest be $360.

Suppose that you start working for a company at age 25. You are offered two rather unlikely, but quite enticing, retirement plans from which you are allowed to choose one. [Round all answers to the nearest dollar.] Retirement plan 1: When you retire, you will receive $16,000 for each year of service. Retirement plan 2: When you start work, the company deposits $2500 into a savings account that is guaranteed to pay a yearly rate of 16%. When you retire, the account will be closed and the balance given to you. A. Determine the amount you would receive under plan 1, if you retired at age 55. $ B. Determine the amount you would receive under plan 1, if you retired at age 65. C. Determine the amount you would receive under plan 2, if you retired at age 55. D. Determine the amount you would receive under plan 2, if you retired at age 65.

You want to buy a car.  A dealership in town has the SUV you want to buy for $22,510.  Your first financing option is to make a down payment of $2500 and finance the rest at 2.99% APR for 72 months. How much will you be financing?  $  How much will your monthly payments be under this financing option?  (Round to the nearest dollar.)  $  How much total money will you pay for the SUV at the end of the 72 months under this financing option?  (Don't forget to include your down payment in this total amount.) $

It’s time to get a new laptop. The laptop is $1,800.  You could put money aside for it each month for one year.  If you put the money in an account that earns 4.5%, how much will you have to save each month?Your other option is to finance it over two years paying 7.1%. How much would your monthly payment be?What are the total acquisition costs of each option?

You have decided to buy a car this year at a price of $18,000. You're planning to take out a loan for the full price of the vehicle at an interest rate of .5% per month. For the first two years (24 months), you decide to repay $600 per month. How much will you have to pay each month for the remainder of the three-year loan (12 months remain) to exactly pay off the car in full at the end of the three-year term? Hint: Consider the monthly interest rate, the number of periods in months, and the monthly cash flows. $433 $500 $443 $600 O $419

Your new job offers a savings plan that pays 0.75 percent in interest each month. You can't participate in the plan, however, until you have 5 years with the company.  At that time you will start saving $100 a month for the next 28 years.     How much will you have in this savings account in 33 years? Round your answer to two decimals.     $     Another perk of your new job is that, after 5 years with the company, you will also get an increase of $125 in your monthly salary. Assume you would stay with the company for 28 more years after getting the salary increase, and that you discount at 0.75 percent each month.     What is this salary increase worth to you today? Round your answer to two decimals.