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cost of vacation is $12,000, and their saving account now has only $7451.05? Now, Let's assume that the couple would delay taking that vacation until

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cost of vacation is $12,000, and their saving account now has only $7451.05? Now, Let's assume that the couple would delay taking that vacation until summer 2024. where the cost would increase to $10,000, and let's also assume that their friend Kim has just made an offer to deliver $10,000 to the couple upon their arrival at Geneva Airport on the first of June, 2024. Kim's offer is a proposal of an alternative payment of a personal loan of $7,500 that she got from the couple in 2017. The agreement then was that the loan had to be paid back by Summer of 2024 with a compound interest rate of 5% annually. A. What would be the current value of the $10,000 assuming the compound interest rate stays at 5%? B. What would be the discount factor, and what does it mean to the couple financially and in terms of their personal utility (satisfaction)? Is it worth it for the couple to accept Kim's offer? Discuss the financial and nonfinancial (convenience, for instance) aspects of the argument taking into consideration the calculations of the pay-off amount in the original deal of 2017. Now. Let's assume that the couple would delay taking that vacation until summer 2024 where the cost would increase to $10,000, and let's also assume that their friend Kim has just made an offer to deliver $10,000 to the couple upon their arrival at Geneva Airport on the first of June, 2024. Kim's offer is a proposal of an alternative payment of a personal loan of $7,500 that she got from the couple in 2017. The agreement then was that the loan had to be paid back by Summer of 2024 with a compound interest rate of 5% annually. A. What would be the current value of the $10,000 assuming the compound interest rate stays at 5%? B. What would be the discount factor and what does it mean to the couple financially and in terms of their personal utility (satisfaction)? Is it worth it for the couple to accept Kim's offer? Discuss the financial and nonfinancial (convenience, for instance) aspects of the argument taking into consideration the calculations of the pay-off amount in the original deal of 2017

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