Fairfax Cookie just bought 2 tons of chocolate chips from Chantilly Chocolate. Fairfax Cookie has been offered the 3 possible payment options described in the table. If the discount rate is 9.94% , which of the assertions is true? Terms of payment (amount and timing) Option from Fairfax Cookie to Chantilly Chocolate $9,450.00 today $12,500.00 in 3 years $14,900.00 in 3 years O Fairfax Cookie should prefer option B more than option A, and Fairfax Cookie should prefer option A more than option C O Fairfax Cookie should prefer option B more than option A and Fairfax Cookie should prefer option C more than option A O Fairfax Cookie should prefer option A more than option B and Fairfax Cookie should prefer option C more than option A O Fairfax Cookie should prefer option A more than option B, and Fairfax Cookie should prefer option A more than option C A B с

mead. 13. I am car shopping. Here are the options: Option A: New car for $28,000 6-year installment loan at 3.9% Option B: Used car for $22,000 6-year installment loan at 5.9% 2X If both options require monthly payments, which is the better option? Provide calculations AND a written response to support your choice. (Hint: start by calculating monthly payment amounts)

You want to purchase an automobile for $22,800. The dealer offers you two options. Option 1 is 0% financing for 48 months. Option 2 offers 2.9% financing for 72 months. A) Compute the monthly payments for each option. Show work to justify your answer. N 1% PV PMT FV P/Y C/Y Option 1: Monthly Payment is: Option 2: Monthly Payment is: N 1% PV PMT FV P/Y C/Y B) Compute the total cost for each option. Show work to justify your answer.

You agree to purchase a car with a competitive value of $44,500 for the following loan contract: Purchase the car for $44,250 with $2,000 down and borrow the remainder over 5 years with monthly payments based on a rate of interest of 6.6%.  Your market rate of return is 5.25%. How much value did you destroy with this purchase? (Round to dollars and cents; round the car payment to dollars and cents.)

Lights, Camera, and More sells filmmaking equipment. The company offers three purchase options: (1) pay full cash today, (2) pay one- half down and the remaining one-half plus 10% in one year, or (3) pay nothing down and the full amount plus 15% in one year. George is considering buying equipment from Lights, Camera, and More for $130,000 and therefore has the following payment options: Payment Payment in One Option 1 Option 2 Option 3 Required: Today $130,000 Year $ 0 Total Payment $130,000 65,000 0 71,500 149,500 136,500 149,500 1-a. Assuming an annual discount rate of 12%, calculate the present value and the total cost. 1-b. Which option's cost has the lowest present value? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Assuming an annual discount rate of 12%, calculate the present value and the total cost. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) Payment…

K Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $110,000 loan. Option 1: a 30-year loan at an APR of 9.5% Option 2: a 15-year loan at an APR of 9% Find the monthly payment for each option. The monthly payment for option 1 is $ The monthly payment for option 2 is $ (Do not round until the final answer. Then round to the nearest cent as needed.)

When purchasing a $100,000 house, a borrower is comparing two loan alternatives. The first loan is an 80% loan at 4% with monthly payments of $591.75 for 15 years. The second loan is 90% loan at 5% with monthly payments of $526.13 over 25 years. What is the incremental cost of borrowing the extra money assuming the loan will be held for the full term? O 6.50% O 13.21% O 7.20% O 13.70%