Which option is a better deal and why

Reference no: EM132178220

Question: You are considering taking out a two-year loan of $1,000 from a bank, on which you can pay either compound yearly interest of 1 percent or a flat rate of 2 percent for the whole two-year period. Which option is a better deal, and why? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132178220

Questions Cloud

What options does OSHA have regarding the proposed rule : What obligation does OSHA have to consider the objections and the materials submitted by PPBC? What options does OSHA have regarding the proposed rule?

Why farah is the one who delays payment : Colton has a choice between $100 today and $150 in three months. Farah has a choice between $100 today and $125 in three months. Colton chooses $100 today.

Generalizations and stereotyping related to generation : Specifically address how Joanne and Julia can help reduce the use of generalizations and stereotyping related to generation.

How long will take before you can access the money : Suppose your aunt invests $2,000 for you. You are not allowed to have the money until the original amount doubles. Your aunt's investment earns 10 percent.

Which option is a better deal and why : You are considering taking out a two-year loan of $1,000 from a bank, on which you can pay either compound yearly interest of 1 percent or a flat rate.

Ranking their sales reps based on performance metrics : Some of the largest sales organizations in the U.S. are experimenting with ranking their sales reps based on performance metrics.

What information do you need to calculate the present value : Suppose you are selling a piece of furniture to a friend who can't afford to pay you upfront but offers to pay you in monthly installments for the next year.

Determine how to take the risk into account : A pharmaceutical company is considering investing in the development of a new drug. The company stands to make a lot of profit if the drug is successful.

What is the free cash flow of the firm : EBIT of $200,000, a tax rate of 20% and has a $2,100 change in the firm's capital spending, what is the free cash flow of the firm

User Account

All Pages