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A. Suppose a treadmill costs $1,200. Over the next five years, he will have a return of $1,000 per year. Maintenance of the treadmill
A. Suppose a treadmill costs $1,200. Over the next five years, he will have a return of $1,000 per year. Maintenance of the treadmill will cost $300 per year. At the end of the five years, the treadmill can be sold for $75. If the current savings interest rate is 4%, what is the net present value of the treadmill? B. Consider a loan with a nominal value of 30,000 maturing on June 01. The value date is March 01 and the interest rate is 8%. a. Calculate the amount of interest paid on this transaction, knowing that the calculation is done by number of exact days based on 360. b. What would have been this same amount by adopting a calculation in number of days "In months" based on 360 or in exact number of days based on 365? c. Calculate the difference as a percentage.
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