Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Edit: The information from the previous question is not needed for the question Please answer using excel formula, leave answers to 2 dp, but use
Edit: The information from the previous question is not needed for the question Please answer using excel formula, leave answers to 2 dp, but use the exact amount from the previous question to answer the final question. Here are the answers to the previous question:
Question 5 Answer saved Marked out of 1.00 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 $52,000 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 fitorst payment being exactly 3 months from today. Again, the interest rate on Geoffrey's account is 4.1% p.a. effective. (a) Calculate the size of the level quarterly repayment. P Flag question Answer: 2884.39 Question 6 (b) How much money does Geoffrey owe on this loan after 1 year? Answer saved Marked out of 1.00 Answer: 42418.56 P Flag question (c) How much interest does Geoffrey pay in the first year? Question 7 Answer saved Marked out of 1.00 Flag question Answer: 1956.10 Question 8 Answer saved (d) Geoffbrey believes that the overall benefit from this agreement amounts to $260.40044439178 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 $52,000 and this weekly benefit of $260.40044439178, calculate the interest rate that represents the return on this investment, expressed as a nominal annual rate compounding weekly. Marked out of 2.00 P Flag question Answer: 11.03 Question 9 Not yet saved Marked out of 1.00 Gillian has entered the agreement with Geoffrey described above. She estimates that the costs of the delivery services she has promised to Geoffdrey (petrol, insurance, wear and tear, etc) amount to $987.39528667531 per month in advance for the coming 5 years. (a) If Gillian can borrow/invest money at a rate of 3.6% p.a. effective, what is the equivalent amount today of her future liabilities? Note that this calculation should not involve the payment she receives from Geoffrey today. P Flag question Answer: Question 10 Not yet saved (b) The money she receives from Geoffrey can be considered a loan, with repayments being the value of the services she provides in return. What is the interest rate, expressed as an effective annual rate, she is being charged on this "loan"? Marked out of 2.00 P FlagStep 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