ill etisalat 2:20 AM Youeco 2016 final.pdf Problems 22 through 24 are based on the following information Your friend is buying a $12,375 $3,000 down siasis car with a $3,000 down payment (initial payment at time 0) to be paid to be paid over the next three years. Your friend was given the following two ely options to finance his new car Option I: Option 2: Pay quarterly payments of $975 each the next three years Pay monthly payments of $325 each for the next three years 22. The effective interest rate (per month) for Option 1 is closest to a.15% b. 1.25% . 0.3% d.3.6% 23. The effective annual interest rate for Option 2 (12 quarterly payments) is closest to a. b. . d, 14.7% 16.1% 13.2% 3.5% 24. Which of these two options is better for your friend financially? a. Monthly Payments b. Quarterly Payments c. Either one (both are equal d. Neither one (since it cannot be determined) roblems 25 through 29 are based on the following information: The Transportation Authority is planning to build a new bridge. Since only part of the capacity will required for the next 20 years, an alternative to building the full capacity now is to build the bridgse two stages. MARR is 8% Estimated costs are as follows: Construction Rehabilitation Cost Annual Costs Every 10 years Build in two stages: now)$12 M $14 M Stage 1 (Building after 20 years) Build full capacity now $1 M S50 K Additional $1.2 M | Additional $75 on top of that for on top of thatt Stage 2 (Expand to full-capacity Stage 1 S2 M Stage l S100 K S24 M 25. When building this bridge in two stages,the expected annual maintenance cost in year 21 an thereafter is closest to a $25 K b. $50 K .$75K d. $125 K ill etisalat 2:20 AM Youeco 2016 final.pdf Problems 22 through 24 are based on the following information Your friend is buying a $12,375 $3,000 down siasis car with a $3,000 down payment (initial payment at time 0) to be paid to be paid over the next three years. Your friend was given the following two ely options to finance his new car Option I: Option 2: Pay quarterly payments of $975 each the next three years Pay monthly payments of $325 each for the next three years 22. The effective interest rate (per month) for Option 1 is closest to a.15% b. 1.25% . 0.3% d.3.6% 23. The effective annual interest rate for Option 2 (12 quarterly payments) is closest to a. b. . d, 14.7% 16.1% 13.2% 3.5% 24. Which of these two options is better for your friend financially? a. Monthly Payments b. Quarterly Payments c. Either one (both are equal d. Neither one (since it cannot be determined) roblems 25 through 29 are based on the following information: The Transportation Authority is planning to build a new bridge. Since only part of the capacity will required for the next 20 years, an alternative to building the full capacity now is to build the bridgse two stages. MARR is 8% Estimated costs are as follows: Construction Rehabilitation Cost Annual Costs Every 10 years Build in two stages: now)$12 M $14 M Stage 1 (Building after 20 years) Build full capacity now $1 M S50 K Additional $1.2 M | Additional $75 on top of that for on top of thatt Stage 2 (Expand to full-capacity Stage 1 S2 M Stage l S100 K S24 M 25. When building this bridge in two stages,the expected annual maintenance cost in year 21 an thereafter is closest to a $25 K b. $50 K .$75K d. $125 K
