2. Amotorcycle is sold for Rs. 50,000. The motorcycle dealer is willing to sell it on...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
2. Amotorcycle is sold for Rs. 50,000. The motorcycle dealer is willing to sell it on the following terms: (a) Make no down payment but pay Rs. 1,500 at the end of each of the first four months and Rs. 3,000 at the end of each month after that for 18 continuous months. (b) Make no down payment but pay a total amount of Rs. 90,000 at the end of the 22nd month; till that time the buyer should mortgage property worth of Rs. 50,000, at present. Based on these terms and a 12% annual interest rate compounded monthly, find the best alternative for the buyer based on the future worth method of comparison. 2. Amotorcycle is sold for Rs. 50,000. The motorcycle dealer is willing to sell it on the following terms: (a) Make no down payment but pay Rs. 1,500 at the end of each of the first four months and Rs. 3,000 at the end of each month after that for 18 continuous months. (b) Make no down payment but pay a total amount of Rs. 90,000 at the end of the 22nd month; till that time the buyer should mortgage property worth of Rs. 50,000, at present. Based on these terms and a 12% annual interest rate compounded monthly, find the best alternative for the buyer based on the future worth method of comparison.
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
1. Use the following information to discuss some of the most likely issues to face the Venezuelan economy in light of in-class content. (a) Since 2002, Venezuela has embarked on a process of...
-
The following balance sheets at the end of each of the first two years of operations indicate the following: Total current assets: 2010- $600,000 2009- $560,000 Total investments: 2010- 60,000 2009-...
-
The price of pizza is pz = 20 per unit. (a) Donna spends all of her income, 100 dollars, on pizza (z) and tacos (t). Donnas utility function is U(z, t) = z 0.9 t 0.1 . (a.1) Derive Donnas demand...
-
Find f. f(x) = f'(x) = 12x + X x > 0, f(1) = -4
-
Discuss the relationship between the positioning concept and positioning strategy.
-
(a) Test the hypothesis that \(\mu_{1} eq \mu_{2}\) at the \(\alpha=0.1\) level of significance for the given sample data. (b) Construct a \(90 \%\) confidence interval for \(\mu_{1}-\mu_{2}\). (c)...
-
Explain why certain duties that are deemed incompatible in a manual system may be combined in a CBIS environment. Give an example.
-
The amounts of the assets and liabilities of Nordic Travel Agency at December 31, 2016, the end of the year, and its revenue and expenses for the year follow. The retained earnings were $600,000 on...
-
Chuck and his ex-wife divorced in 2010. Please calculate AGI(adjusted gross income) based on the 2020 tax year and please include all calculations made. Wages $80,000 Interest income from corporate...
-
Given two arrays each of length n, arr1, and arr2, in one operation, any two elements of an array can be swapped. This can occur any number of times. Find the maximum possible sum of i*(arr2[1]-...
-
Given the following adjusted trial balance Account name Cash Accounts receivable Advertising supplies (inventory) Prepaid insurance Office equipment Accumulated depreciation Notes payable Accounts...
-
Synthesize information about the mere-exposure effect theory. Thereby expanding your understanding of how to structure and order messages. The assignment fits the module learning outcome where...
-
1. Engineering economics plays a crucial role in the manufacturing industry, where it focuses on the financial aspects of engineering projects. (a) How can the application of simple and compound...
-
Consider the function f(x)=x-6x +36x. Use the first derivative test to find the interval(s) where the function is INCREASING.
-
BMW Inc. adds materials at the start of the process. The following information is available for the month of December 2012: Work-in-process, 12/1/2012 (35% completed as to conversion cost) 700 Units...
-
Find the derivative of f(x). f(x) = X 3 2 Write your answer as a constant times a power of x. f'(x) =
-
Compute the missing amounts in the separate (partial) income statements A, B, and C. B C Sales $ 54,000 $ 124,000 Sales discounts 3,200 840 5,400 Sales retums and allowances 7,400 10,400 Net sales...
-
Assume a simple Keynesian depression economy with a multiplier of 4 and an initial equilibrium income of $3,000. Saving and investment equal $400, and assume full employment income is $4,000. a. What...
-
One useful piece of information derived from the Black-Scholes model for the valuation of a call option is the hedge ratio, which gives the slope of the line relating the change in the price of an...
-
A call penalty protects whom from what? Why may firms choose to retire debt early after a period of high interest rates?
-
How do interest rates and risk affect a stocks price in the Capital Asset Pricing Model?
-
Explain the trade-offs that inventory managers face when they reorder products or supplies. How is the reorder point computed?
-
Supply-chain management involves long-term partnerships among channel members that are working together to reduce inefficiencies, costs, and redundancies and develop innovative approaches to satisfy...
-
Assume that you are responsible for the physical distribution of computers at a web-based company. What would you do to ensure product availability, timely delivery, and quality service for your...
Study smarter with the SolutionInn App