Purchase a good trade-off for dorothy

Assignment Help Finance Basics
Reference no: EM131504430

Dorothy lacks cash to pay for a $1,620 dishwasher. She could buy it from the store on credit by making 12 monthly payments of $140. The total cost would then be $1,680. Instead, Dorothy decides to deposit $135 a month in the bank until she has saved enough money to pay cash for the dishwasher. One year later, she has saved $1,733.40-$1,620 in deposits plus interest. When she goes back to the store, she finds the dishwasher now costs $1,782.00. Its price has gone up 10 percent, the current rate of inflation.

From the financial standpoint, was postponing her purchase a good trade-off for Dorothy?

Reference no: EM131504430

Questions Cloud

New product development process : In your opinion, which of the seven stages in the new product development process is most important and what reasoning led you to your conclusion?
How to learn what you need to know in order to structure : What thoughts do you have about how to learn what you need to know in order to structure the hospital's preparations and continue regular functioning.
Read the case study and develop your it support strategy : ISCG6412IT Help Desk Design a job description for the Help desk operators and develop a code of ethics that they will need to abide by.
A disaster situation in a health care setting : When faced initially with a disaster situation in a health care setting, what do you think your first five steps need to be? Why?
Purchase a good trade-off for dorothy : From the financial standpoint, was postponing her purchase a good trade-off for Dorothy?
How to integrate clinical inquiry into the organization : Complete the "Organizational Culture and Readiness for System-Wide Integration of Evidence-Based Practice Survey".
What is the payback period of this project : What is the payback period of this project? Should you take the project if you want to increase the value of the company?
Changes in an equity market price : An investor can profit on changes in an equity's market price without ever having to actually put up the money to buy the equity.
Which investment is the best opportunity : when does picking the higher IRR give the correct answer as to which investment is the best opportunity?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd