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.
Julia has entered the agreement with Steven described above. She estimates that the costs of the delivery services she has promised to Steven (petrol, insurance, wear and tear, etc) amount to $1012.0202983169 per month in advance for the coming 5 years.
- If Julia can borrow/invest money at a rate of 4% 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 Steven today.
- The money she receives from Steven 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?
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