How much better off will you be at the end of months

Reference no: EM131954866

Question: Car insurance contracts are usually semiannual. The insurance company usually gives you a choice: pay the whole semiannual amount up front, or pay 6 equal monthly installments at the beginning of each of the next 6 months. Your insurance quote is for an up front amount is $536, or 6 monthly installments of $137 at the start of each month.

If the annual rate of return you'd be earning on this money is 1.5% APR, how much better off will you be at the end of 6 months if you pay up front? (Note this can be a negative number if you'll actually be worse off.)

Reference no: EM131954866

Questions Cloud

Find percentage values of average costs of the merged firms : Calculate the difference between the percentage values of the average costs of the merged firms and the combined average costs of two nearby competitors.

Which deal is cheaper and why : A car company is offering a choice of deals. You can receive $2,000 cash back on the purchase, or a 0 percent APR, 4-year loan.

What is the benefit of renewable and convertible : explain how term and cash value policies work. What is the benefit of a renewable and convertible.

Make the net present value of this project equal to zero : Calculate the rate of return that would make the net present value of this project equal to zero,

How much better off will you be at the end of months : If the annual rate of return you'd be earning on this money is 1.5% APR, how much better off will you be at the end of 6 months if you pay up front?

Basic methods to calculate the value of inventory : Which is not included in the three basic methods to calculate the value of inventory?

How many directors can elect to the board : Carl Hubbell owns 5,001 shares of the Piston Corp. There are 10 seats on the company board of directors, and the company has a total of 55,000 shares of stock.

Compute the capitalized cost of perpetual service : Annual operating costs are expected to be $74,000 for the first 17 years and $104,000 thereafter. Compute the capitalized cost of perpetual service at i = 6.6%.

Is the company capital intensity same : Now assume the company's assets totaled $4 million at the end of 2016. Is the company's "capital intensity" the same or different comparing to initial.

User Account

All Pages