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You want to buy a new Honda Accord which has a price of $38,000. The dealership offers you two options:
You will receive a $3,000 cash back rebate if you pay for the car fully today.
You can finance the car at full price at the dealership's interest rate of 6.55% p.a., compounded quarterly. The financing period is seven years. At the end of seven years, you will have fully paid for the entire car. Payments will be monthly, at the beginning of the month. The payment amount will be equal for all payments.
a) If you choose to finance it through the dealership, what will your monthly payments be?
b) Now suppose you meet the bank and the bank is willing to lend you money to buy the car today. The loan will be for seven years, with beginning of month, equal monthly payments. At the end of seven years, the loan will be fully repaid. What is the maximum effective annual interest rate you would be willing to pay the bank?
The following are key characteristics of the Optimal Consumer's Allocation, as presented in class, EXCEPT:
Consulting skills should; make managing easier for clients, provide relevant knowledge and experience to clients
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China exports China produced mobile phones such as Xiaomi and imports mobile phones including Samsung Galaxy with an ad valorem tariff of 9 percent. Dram is an
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Based on the above statement, you are asked to choose a multinational enterprise, which has become over the years the cornerstone of the supply chain - how it manages to establish close coordination across the globe
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Description of data collected. Conclusión on the subject and important findings that you would like to highlight. Recommendation for future research on subject
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