Unformatted text preview: The price of the entertainment center is $12,000. Can you afford to buy it with your $300/mo disposable income? 5. You really want this particular entertainment center. You decide to try and negotiate a different interest rate so that you can spend less per month. What is the highest interest rate you can accept, given a 60-month term and $250/mo payments? 6. You are arranging a six-year contract to buy a quantity of wine to sell in your store. You will pay for the entire contract up front. Six suppliers offer you the following contract terms. For an annual interest rate of 8%, which contract should be selected? Option Cost Uniform (constant) Annual Profit A $10,000 $3,000 B $17,500 $4,800 C $27,500 $6,700 D $30,000 $6,900 E $40,000 12,160 F $50,000 12,160 ----- END -----...
View Full Document
- Spring '08
- 3%, $250, $3000, $280, $6,700