Question

A well-known financial writer argues that he can earn an
extremely high return buying wine by the case. Specifically, he
assumes that he will consume one $13 bottle of fine Bordeaux per
week for the next 12 weeks. He can either pay $13 per week or buy a
case of 12 bottles today. If he buys the case, he receives a
discount of 5 percent. Assume he buys the wine and consumes the
first bottle today.

What is the EAR of purchasing wine by the case with this discount?
**(Do not round intermediate calculations. Enter your answer
as a percent rounded to 2 decimal places, e.g.,
32.16.)**

EAR
%

Answer #1

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A well-known financial writer argues that he can earn 209
percent per year buying wine by the case. Specifically, he assumes
that he will consume one $13 bottle of fine Bordeaux per week for
the next 12 weeks. He can either pay $13 per week or buy a case of
12 bottles today. If he buys the case, he receives a 11 percent
discount and, by doing so, earns the 209 percent. Assume he buys
the wine and consumes the...

A well-known financial writer argues that he can earn 148
percent per year buying wine by the case. Specifically, he assumes
that he will consume one $12 bottle of fine Bordeaux per week for
the next 12 weeks. He can either pay $12 per week or buy a case of
12 bottles today. If he buys the case, he receives a 9 percent
discount and, by doing so, earns the 148 percent. Assume he buys
the wine and consumes the...

A well-known financial writer argues that he can earn 101
percent per year buying wine by the case. Specifically, he assumes
that he will consume one $14 bottle of fine Bordeaux per week for
the next 12 weeks. He can either pay $14 per week or buy a case of
12 bottles today. If he buys the case, he receives a 7 percent
discount and, by doing so, earns the 101 percent. Assume he buys
the wine and consumes the...

Using only the Excel functions, please solve the following
questions: 2. [Interest Rates]: Well-known financial writer Andrew
Tobias argues that he can earn 200% per year buying wine by the
case. Specifically, he assumes that he will consume one $10 bottle
of fine Bordeaux per week for the next 12 weeks. He can either pay
$10 per week or buy a case of 12 bottles today. If he buys the
case, he receives a 10 percent discount and, by doing...

Part B: Using only the Excel functions, please solve the
following questions: 2. [Interest Rates]: Well-known financial
writer Andrew Tobias argues that he can earn 200% per year buying
wine by the case. Specifically, he assumes that he will consume one
$10 bottle of fine Bordeaux per week for the next 12 weeks. He can
either pay $10 per week or buy a case of 12 bottles today. If he
buys the case, he receives a 10 percent discount and,...

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