One of your groupmates is planning to purchase a cellular phone. Here are the three offers of an insurer: OFFER A OFFER B OFFER C Mode of Payment: installment Time Payment: at the end of each month Interest: 4.5% compounded monthly Down payment: Php 3000 Monthly Payment: Php 1699 for 1 year Mode of Payment: installment Time Payment: at the end of each month Interest: 4.5% compounded quarterly Down payment: Php 3500 Monthly Payment: Php 1699 for 1 year Mode of Payment: installment Time Payment: at the end of each month starting on the 2nd month Interest: 4.5% compounded monthly Down payment: Php 3500 Monthly Payment: Php 1699 for 1 year ✓ Identify the difference among the three offers by showing the solution for total payment of cellular phone and its interest. ✓Give at least 2 reasons for each offer why your groupmate would choose it.

One of your groupmates is planning to purchase a cellular phone. Here are the three offers of an insurer: OFFER A OFFER B OFFER C Mode of Payment: installment Time Payment: at the end of each month Interest: 4.5% compounded monthly Down payment: Php 3000 Monthly Payment: Php 1699 for 1 year Mode of Payment: installment Time Payment: at the end of each month Interest: 4.5% compounded quarterly Down payment: Php 3500 Monthly Payment: Php 1699 for 1 year Mode of Payment: installment Time Payment: at the end of each month starting on the 2nd month Interest: 4.5% compounded monthly Down payment: Php 3500 Monthly Payment: Php 1699 for 1 year ✓ Identify the difference among the three offers by showing the solution for total payment of cellular phone and its interest. ✓Give at least 2 reasons for each offer why your groupmate would choose it.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Troy Juth wants to purchase new dive equipment for Underwater Connection, his retail store in Colorado Springs. He was offered a $78,000 loan at 8.5% for 60 months. What is his monthly payment by table lookup? (Use Table 14.2) Note: Round your answer to the nearest cent. Monthly payment: TABLE 14.2 Loan amortization table (monthly payment per $1,000 to pay principal and interest on installment loan) Terms in months 7.50% 8.00% 8.50% 9.00% 10.00% 10.50% 11.00% 11.50% 12.00% 12.50% 13.00% 13.50% 14.00% 14.50% 15.00% 15.50% 16.00% 6 $ 170.34 $ 170.58 $ 170.83 $ 171.20 $ 171.56 $ 171.81 $ 172.05 $ 172.30 $ 172.55 $ 172.80 $ 173.04 $ 173.29 $ 173.54 $ 173.79 $ 174.03 $ 174.28 $ 174.53 12 86.76 86.99 87.22 87.46 87.92 88.15 88.38 88.62 88.85 89.08 89.32 89.55 89.79 90.02 90.26 90.49 90.73 18 58.92 59.15 59.37 59.60 60.06 60.29 60.52 60.75 60.98 61.21 61.45 61.68 61.92 62.15 62.38 62.62 62.86 24 45.00 45.23 45.46 45.69 46.14 46.38 46.61 46.84 47.07 47.31 47.54 47.78 48.01 48.25…
Based on the following information, determine the maximum loan amount available as of July 31, 2021. T The plan allows for two outstanding loans at a time. The participant took a loan of $45,000 on March 1, 2021. The participant's outstanding loan balance is $0 as of July 31, 2021. The participant's vested account balance is $150,000 . Answers: $0, $5,000, $50,000, or $75,000?
PLEASE ANSWER WITHIN 30 MINUTES.
Your child's orthodontist offers you two alternative payment plans. The first plan requires a $4,000 immediate up-front payment. The second plan requires you to make monthly payments of $137.41, payable at the end of each month for 3 years. What nominal annual interest rate is built into the monthly payment plan? a. 15.25% b. 7.34% c. 25.86% d. 11.42% e. 14.36%
For life insurance policies, some of the premium pays for the cost of the insurance, and the remainder goes toward the cash value of the policy and earns interest like a savings account. Consider the following insurance company options. Company 1: pays 4.2% compounded monthly on the cash value of their policies Company 2: pays 4.21% compounded semiannually on the cash value of their policies What is the APY offered by each company? (Round your answers to the nearest hundredth.) Company 1 % Company 2 %
A credit cooperative recently offers a 36-month loan at 4.15% compounded monthly for typhoon victim members. If a member can afford only to pay Php 750 a month, how much can he borrow from the cooperative? What is the total interest he will pay for his loan?
Give typing answer with explanation and conclusion What regular interest payment will grandmamma receive from a seven-year, $1,750,000 monthly payment GIC earning a nominal rate of 5.4% compounded monthly?
Your child's orthodontist offers you two alternative payment plans. The first plan requires a $3,900 immediate up-front payment. The second plan requires you to make monthly payments of $129.56, payable at the end of each month for 3 years. What nominal annual interest rate is built into the monthly payment plan? a. 9.51% b. 12.75% c. 6.15% d. 12.01% e. 21.05%
Use the following to answer questions 25 – 27 On January 1, year 1, ST borrows $24,000 to purchase a new vehicle by agreeing to a 4.0%, 4-year note with the bank. Payments of $541.90 are due at the end of each month with the first installment due on January 31, ROUND YOUR ANSWERS TO THE NEAREST CENT. year 1. 25. After the first car payment (installment) is made the amount owed on the vehicle would be: $ 26. Determine interest expense for the second car payment $ 27. After the Company pays all the car payments, how much do they owe at the end of the 5 years? $

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS