Review of elementary finance tools

then $1000 for the next 40 months. Its next door competitor, Chatham Hill Autos will give you a $3000 off the list price straight away. If the interest rate is 6% a year, which company is giving a better deal? Leeds Autos Chatham Hill Autos 10. Your parents make you the following offer: They will give you $5000 at the end of every six months for the next five years if you agree to pay them back $5000 at the end of every six months for the following ten years. Should you accept this offer if your opportunity cost of funds is 18% per year, compounded semiannually? Yes No