Question
Solve using Excel (with screenshots of calculations). For dollar amounts, give your answer to the nearest cent and do not include any currency signs. For
Solve using Excel (with screenshots of calculations). For dollar amounts, give your answer to the nearest cent and do not include any currency signs. For interest rates, give our answer as a percentage rounded to 2 decimal places. For each question, some parts of the question may use values from earlier parts. In these cases, use the exact values from the earlier parts, not the rounded values.
Steven is considering a food delivery service "You, bars, meats" that his friend Julia has recently started. Julia 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 Steven needs for his business for the next 5 years. Steven is considering borrowing the full amount from his business account.
Suppose that Steven makes level quarterly repayments over the coming 5 years, the first payment being exactly 3 months from today. The interest rate on Steven's account is 4.5% p.a. effective.
- Calculate the size of the level quarterly repayment.
- How much money does Steven owe on this loan after 1 year?
- How much interest does Steven pay in the first year?
- Steven believes that the overall benefit from this agreement amounts to $248.30333868814 per week in arrears (this would include money he would have spent on alternative delivery services, estimated additional profits from using Julias services, etc.) By considering only the initial cost of $52,000 and this weekly benefit of $248.30333868814, calculate the interest rate that represents the return on this investment, expressed as a nominal annual rate compounding weekly.
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