Identify the sunk cost

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A) If I borrow $5000 from my parents and promise to pay them back in 5 years at 5%, how much would I pay them at the end of the 5th year?

B) If I borrow $5000 from my parents and promise to pay them back over 5 years, how much would I pay in equal payment at the end of each of the 5 years at an interest rate of 5%?

C) I borrow $5000 from m y parents and promise to pay them back over 5 years at 5% interest, I pay them $3000 after 2 years, What is my final payment at the end of the 5th year?

D) Which plan is better? Explain you answer.

E) Identify the sunk cost and explain why or why not it should be considered in the. analysis .

Reference no: EM13319939

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