Question
(A) The company needs cash to purchase produce for future sales. (Assume past and future sales/costs are similar.) Bob plans to take a $305,000 loan.
(A) The company needs cash to purchase produce for future sales. (Assume past and future sales/costs are similar.) Bob plans to take a $305,000 loan.
Total cost is 304,897
A1. Is the loan enough to cover total costs?
A2. Bob obtained loan quotations from several banks as follows:
- Bank I offered a loan at 5.8% APR (annual percentage rate) to be paid back in 12 fixed monthly payments.
- Bank II offered a loan to be paid back in 12 fixed monthly payments of $26 thousand each.
- Bank III offered a loan at 5% APR to be paid back in fixed monthly payments of $26,110.
- What is the best offer for Bob? Why?
Explain the functions please
| (A) Question | Total | ||||
| Total Cost | |||||
| (A) Loan Quotations | Loan | APR | Num. months | payment/month | FV |
| Bank I | |||||
| Bank II | |||||
| Bank II | |||||
| What is the best loan offer for Bob? Why? |
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Auditing Concepts For A Changing Environment
Authors: Larry E. Rittenberg, Bradley J. Schwieger
5th Edition
0324223102, 978-0324223101
