In: Finance
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 |
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