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what is the answer to #29? 24. A supplier of doors provided a condominium development project: - Option A: $120,500 immediately and another payment of
what is the answer to #29?
24. A supplier of doors provided a condominium development project: - Option A: $120,500 immediately and another payment of $75,600 in six months. * Option B: $30,000 immediately and another payment of $165,500 in five months. If money earns 4% p.a. simple interest, calculate the option that would be economically better for the contractor and the amount by which he would benefit. Use today as the focal date. 25. Mee was supposed to pay $1350 that was due 150 days ago and is supposed to pay $450 that is due in 30 days to clear a loan that she borrowed from Yan. Instead, Mee promised to pay $1000 today and the balance in 60 days. Calculate the amount that she would have to pay in 60 days if the interest rate charged is 9% p.a. and the agreed focal date is 60 days from now. 26. $1800 due two months ago and $700 due in three months are to be repaid by a payment of $1500 today and the balance payment in four months. Calculate the balance if the interest rate is 6% p.a. and the agreed focal date is four months from now. 27. $2400 due two months ago but not paid and $1600 due in four months are to be replaced by a payment of $3000 in two months from now and a final payment in five months. Find the final payment if the interest rate is 4.25% p.a. and the agreed focal date is five months from now. 28. $1800 due one month ago but not paid and $2200 due in three months are to be replaced by a payment of $2500 in two months from now and a final payment in four months. Find the final payment if the interest rate is 3.75% p.a. and the agreed focal date is four months from now. 29. What two equal payments, one on March 05, 2017 and the other on June 15, 2017, will be equivalent to the following two payments: $2400 on April 01, 2017 and $3500 on August 15, 2017? Assume that money earns 5\% p.a. Use March 05, 2017 as the focal dateStep by Step Solution
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