Question
COUD YOU SHOW ME IN EXCEL PLEASE Geoffrey decides not to buy the car mentioned earlier. Instead, he is now considering a food delivery service
COUD YOU SHOW ME IN EXCEL PLEASE
Geoffrey decides not to buy the car mentioned earlier. Instead, he is now considering a food delivery service "You, bars, meats" that his friend Gillian has recently started. Gillian has agreed that for a single payment of $62,000 today to help her launch her business, she will provide all the delivery services that Geoffrey needs for his business for the next 5 years. Geoffrey is considering borrowing the full amount from his business account.
Suppose that Geoffrey makes level quarterly repayments over the coming 5 years, the first payment being exactly 3 months from today. Again, the interest rate on Geoffrey's account is 3.6% p.a. effective.
(a) Calculate the size of the level quarterly repayment.
(b) How much money does Geoffrey owe on this loan after 1 year?
(c) How much interest does Geoffrey pay in the first year?
d) Geoffrey believes that the overall benefit from this agreement amounts to $308.71353406919 per week in arrears (this would include money he would have spent on alternative delivery services, estimated additional profits from using Gillian's services, etc).
By considering only the initial cost of $62,000 and this weekly benefit of $308.71353406919, calculate the interest rate that represents the return on this investment, expressed as a nominal annual rate compounding weekly.
COULD YOU SHOW ME IN EXCEL PLEASE
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started