Purchase a good trade-off for dorothy

Assignment Help Finance Basics
Reference no: EM131508997

Dorothy lacks cash to pay for a $720 dishwasher. She could buy it from the store on credit by making 12 monthly payments of $65. The total cost would then be $780. Instead, Dorothy decides to deposit $60 a month in the bank until she has saved enough money to pay cash for the dishwasher. One year later, she has saved $770.40-$720 in deposits plus interest. When she goes back to the store, she finds the dishwasher now costs $849.60. Its price has gone up 18 percent, the current rate of inflation.

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

Reference no: EM131508997

Questions Cloud

Reflect on the contribution of the team activity : Reflect on your experience developing this health promotion activity in a team. Reflect on your contribution to the team process
Calculate her debt payments-to-income ratio : Calculate her debt payments-to-income ratio without college loan. Remember to convert your answer to a percentage!
Evaluation of your overall marketing strategies : The final stage of the marketing audit is for you to evaluate how well the marketing mix of the organisation is performing for your chosen organisation
Analyze the purpose of inventory management : Analyze the purpose of inventory management as it applies to operations management, and then evaluate the advantages and disadvantages evident.
Purchase a good trade-off for dorothy : From the financial standpoint, was postponing her purchase a good trade-off for Dorothy?
Depreciation tax shield : Assume a tax rate of 30% and a discount rate of 12%. What is the depreciation tax shield for this project in year 5?
Revenues from fishing licensing : What might be defensible logic behind using revenues from fishing licensing and fines from violators of fishing regulations
Read the given assignment and solve the queries : For this assignment, you were to respond to the questions regarding employee drug use. I was looking for you to discuss whether employers have a right to know.
What is the net cost to each party in the swap : What is the net cost to each party in the swap? Show your work in detail.

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