Question
I have few questions related to finance. 1.A car company is willing to let you pay for your car in 3 instalments of $10,000 at
I have few questions related to finance.
1.A car company is willing to let you pay for your car in 3 instalments of $10,000 at the end of each year. The interest that banks charges for car loans is 5%. What should the price of the car be for this offer to be worthwhile?
a.$28,571.43
b.$27,210.67
c.$27,571.43
d.$28,210.67
2.You want to buy a new car in 3 years' time. So, you are going to save $5,000 at the end of year 1, $10,000 at the end of year 2 and $15,000 at the end of year 3. If you deposit your money in a bank that pays 7% per year in interest, how much money will you have at the end of 3 years?
a.$34,347.22
b.$32,574.22
c.$33,751.29
d.$32,651.29
3.A financial consultant tells you his company can pay you $2000 at the end of year 1, 4,000 at the end of year 2 and $8,000 at the end of year 3. If the current interest you can get from the bank is 10%, how much will you be expected to invest in this company?
a.$12,081.15
b.$11,135.11
c.$13,081.15
d.$12,135.11
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