What will be the amount of monthly repayments

Assignment Help Operation Management

Reference no: EM131761050

You need $200 000 to buy the car of my dreams. You have been offered a hire purchase agreement at 12,5% p.a. to be repaid in 48 equal monthly instalments. (a) What will be the amount of the monthly repayments? (b) Show that a bank loan at 21% p.a. compounded monthly on the reducing balance is a better option. (c) What hire purchase rate would be better than the 21% bank loan?

Reference no: EM131761050

Questions Cloud

Interest rate-ignoring depreciation : At a 5% interest rate, ignoring depreciation, over a two year period a $100,000 investment must earn at least ____ to be economically viable.

Recruitment policy good fit for the organization : Why is this recruitment policy a good fit for the organization?

Describe the business and function levels : Discuss strategies used at corporate, business and function levels using the concepts learned in the course.

Advertising could reduce traffic fatalities by between : Saffer estimates that a partial ban on alcohol advertising could reduce traffic fatalities by between _______ and ________ lives per year and a total ban by ___

What will be the amount of monthly repayments : You need $200 000 to buy the car of my dreams. What will be the amount of the monthly repayments?

Computing and interpreting the fixed asset turnover ratio : Computing and Interpreting the Fixed Asset Turnover Ratio from a Financial Analysts Perspective

Analysing the structure and functions of hospitality : The purpose of this individual assignment is to develop your skills in analysing the structure and functions of hospitality and tourism management.

Identify a real potential competitor in the market : Create a hypothetical organization offering product /service of your choice. Identify a real potential competitor in the market.

Best fit approaches as means of linking business strategy : What are the advantages of 'best fit' approaches as a means of linking business strategy and HRM?

User Account

All Pages