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Draw the cash-flow diagram for this situation

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  1. Give at least three examples of where decision making process could be used at different levels in a software organization.
  2. Identify one of the situations from you answer to Question 1 and identify at least three decision criteria that would be relevant in making that decision.
  3. Mr. George is thinking about getting a $20,000 second mortgage on his house to help him finance an after-hours software project so he can make some extra money outside of work. He is looking at a 5-years mortgage with fixed 12% (annual) interest. Assume this loan allows him to make annual payments.

a). Draw the cash-flow diagram for this situation

b). Name the proper compound interest formula to apply to this problem

c). What will his annual payment be?

4. Construct a loan amortization table, similar to the one shown in table 6-2, showing the principal and interest seperated for the first 6 months of FunSoft's loan.

5. If FunSoft decided to pay an additional $250 with every payment, how much earlier would their loan be paid off?

6.  If FunSoft did pay the additional $250 with every payment, how much would their final payment be?

 

Reference no: EM13330589

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