Compute the rate of simple interest per annum

Assignment Help Macroeconomics
Reference no: EM131089671

An item is offered for sale at a cash price of £620 or on hire purchase over one year or over two years. When purchased on hire purchase over one year there is a deposit to pay of £110 and 12 monthly payments of £48.45.

When purchased on hire purchase over two years there is a deposit to pay of £140 and 24 monthly payments of £26.

(a) In each case calculate the rate of simple interest per annum charged on the initial amount borrowed.

A second shop offers the same item for sale at £625, or on hire purchase with a deposit of £125 and 15 equal monthly payments. The rate of interest charged on the initial amount borrowed is 10% per annum simple interest.

(b) Calculate the monthly payment.

Reference no: EM131089671

Questions Cloud

Multiple partition requirements : What is the default for Windows Server 2012? How might GPT be useful in servers with multiple partition requirements? Share your recommendations for partitioning with classmates. Cite your resources
Introduction identifying the purpose of the paper : A brief introduction identifying the purpose of the paper. The analysis and discussion (see requirements in first paragraph above). A brief summary describing what you have accomplished in the paper.
Reported about the effects of the number of hours worked : A study was reported about the effects of the number of hours worked, on average, and the average hourly income on unemployment in different countries.3 Suppose that the regression analysis resulted in SSE = 8,650
Obtaining information on a population vs information : Statistics students frequently confuse obtaining information on a population vs information on a sample. Suppose you are a researcher interested in studying one aspect of childhood obesity. You decide to look at the BMI of fifth grade boys in the ..
Compute the rate of simple interest per annum : When purchased on hire purchase over two years there is a deposit to pay of £140 and 24 monthly payments of £26. (a) In each case calculate the rate of simple interest per annum charged on the initial amount borrowed.
Describe the general adaptation syndrome : Describe and provide two concrete examples of the active prevention strategies described in Chapter 6. Describe three different models explaining why people continue to smoke over time. Do you smoke? If so do these seem to fit your use pattern?
Percentage of the net annual premium : A delivery van can be insured for a net annual premium of £861.64. The net premium may be paid in 52 equal weekly installments, but then a charge of £1.10 is added to each installment.
Correlation between midterm scores and final scores : 6. In a certain class, midterm score average out 70 with an SD of 15, as do scores on the final. The correlation between midterm scores and final scores is about 0.40. The scatter diagram is football-shaped.
Discount for prompt payment : A store orders 100 hammers and 50 chisels from a supplier in Belgium. The hammers cost €5.30 each, and the total cost of the order, before discount, is €775.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Why or how might the price of energy not decline

What factors affect how quickly U.S. businesses will actually increase their consumption of renewable fuels versus other energy sources?

  Has the dollar appreciated or depreciated in value

Does this change in the value of the dollar make imports cheaper or more expensive for Americans? Are American exports cheaper or more expensive for importers of U.S. goods in Japan? Illustrate by showing the price of a U.S. e-reader in Japan, before..

  Economic growth

Identify at least four policies from the textbook that the government has created to impact economic growth and productivity.

  High employment deficit

The high employment deficit is estimated at $100 billion. Suppose that the ecomony is operating below full employment and that it will not overheat during year,

  First year and up to 108.3 in the second year

If the nominal GDP is $559 billion in the base year, and it rises to 577 in Year 1, and 605 in Year 2, what is the real GDP in each year, given that the price index has risen from 100 to 104.5 in the first year and up to 108.3 in the second year?

  Plotting the demand curve

Use the demand curve to help you calculate the number of DVDs rented per month and the amount of consumer surplus derived at a rental price of $5.

  How you measure size of argentinas sacri?ce of seigniorage

Why would Argentina have to give the United States seigniorage if it gave up its peso and completely dollarized its economy? How would you measure the size of Argentina's sacri?ce of seigniorage?

  Increase profits by raising revenue

Firms cam increase profits by increasing revenue and/or reducing costs. Provide three example (cite all reference) of firms that are trying to increase profits by raising revenue and three that are trying to do so by reducing costs.

  Temperature in celsius

You go to Europe, and you want to present your data in Celsius. Knowing that C = (F - 32) * (5/9), where F is the temperature in Fahrenheit and C is the temperature in Celsius, what is the average daily temperature of your city for your period of ..

  Calculating mva

Over the years, Janjigian Company stockholders have provided $15,250 of capital, part when they bought new issues of stock and part when they allowed management to retain some of the company's earnings.

  Types of “rules” that government set to encourage growth

What two kinds of changes in the capital stock can improve labor productivity. how can each type be illustrated with a per-worker production function.

  What is the source of the asymmetric information

Describe an adverse selection problem your company is facing. What is the source of the asymmetric information. Who is the less informed party. What transactions are not being consummated as a result of the information. Could you (or do you) u..

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