Question

In: Finance

1. By paying off the manufacturer in 15 days rather than a year, the dollar carrying...

1. By paying off the manufacturer in 15 days rather than a year, the dollar carrying cost of the car to the dealership is

A. sometimes increased, sometimes decreased.

B. increased.

C. decreased.

D. unchanged.

2. Your aunt is planning to invest in a bank CD that will pay 7.0 percent interest semiannually. If she has $13,000 to invest, how much will she have at the end of four years? (Round your answer to the nearest penny.)

Value of investment after 4 years $enter the Value of investment after 4 years

Solutions

Expert Solution

1.

unchanged

Cost of carrying the car is unchanged by when the payment is made,

2.

Value at the end of 4 years = 13,000(1 + 0.07/2)8

Value at the end of 4 years = $17,118.52


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